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Wells Fargo Paying $80M to Customers Over Insurance Snafu

Customers charged for auto insurance without being informed.

by on Jul.28, 2017

Wells Fargo will pay $80 million to resolve problems associated with its auto loan programs.

Wells Fargo is ponying up $80 million in refunds and account adjustments to auto loan customers because the bank charged them for auto insurance without telling them. In most cases, the loan customers already had insurance.

Of the 570,000 customers who were charged, 490,000 had auto insurance from some other provider. The loans had a provision that allowed the bank to charge for insurance coverage if there was no evidence the loan customer had it.

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The actions included loans from 2012 through this year. In some instances, customers had their vehicles repossessed because of problems with the additional payments. The bank will pay $64 million in cash and make $16 million in account adjustments as part of the program. (more…)