Wells Fargo customers sue, claiming insurance scheme was scam
Monday, 31 July 2017 () Wells Fargo & Co. customers accused the bank in a lawsuit of forcing them to pay for unnecessary auto insurance that drove some of them so far into a financial spiral that their vehicles were repossessed. [...] it is accused of bilking millions of dollars from unsuspecting customers who were forced to pay for auto insurance they did not need or want,’’ pushing almost 250,000 of them into delinquency and resulting in almost 25,000 vehicle repossessions, according to a proposed class-action lawsuit filed Sunday in San Francisco federal court. “The revelation of this latest breach of customer trust appears to fit right into the Wells Fargo playbook of dirty deeds, and sadly comes as no surprise,” Roland Tellis, one of Hancock’s lawyers, said last week when he announced his firm was investigating the bank. When customers took out loans to purchase vehicles, Wells Fargo and the insurance company either didn’t check whether clients already had coverage or ignored the information, according to the complaint. Collateral protection insurance policies were created for customers, and Wells Fargo then would add premium charges to customers’ auto loan bills, often without notifying them, according to the lawsuit. The bank said an internal review of its auto lending found more than 500,000 clients may have unwittingly paid for protection against vehicle loss or damage while making monthly loan payments, even though many drivers already had their own policies.
On Friday, the US Department of Labor has ordered Wells Fargo to pay $575,000 and rehire a whistleblower the bank dismissed in September 2011. The order comes after a former employee raised concerns over the opening of customer accounts without their knowledge. According to OSHA, part of the US...
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