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[KSweeley]

According to this Bloomberg article, bank Wells Fargo is being sued by its customers because Wells Fargo has been accused of selling insurance policies that customers did not need or want and as a result, they lost their vehicles: https://www.bloomberg.com/news/arti...mers-sue-claiming-insurance-scheme-was-a-scam

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.

The complaint comes after a year of handwringing and internal changes brought on by an earlier snafu at Wells Fargo. Bank workers opened up possibly 2.1 million checking and credit-card accounts without customers’ permission over about half a decade, and the bank paid $185 million to regulators to settle.

Now, the bank 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.

Indianapolis consumer Paul Hancock claims in the lawsuit that Wells Fargo received kickbacks from National General Holdings Corp., which isn’t named as a defendant, through shared commissions on the policies.

“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. Keller Rohrback LLP, the law firm that’s behind the class action over Wells Fargo’s retail-bank accounts scandal, also said it’s investigating the auto insurance issue.

When customers took out Wells Fargo loans to purchase vehicles, the bank 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.

Wells Fargo last week said it may have pushed thousands of car buyers into loan defaults and repossessions by charging them for the unwanted insurance. 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. The firm said it may pay as much as $80 million to affected clients -- with extra money for as many as 20,000 who lost cars, “as an expression of our regret.”

 

[NandoGip]

Banks need less regulation

We can trust them

 

[Fularu]

How were people not noticing the overcharges?

This is beyond scummy and monetary compensation shouldn't be enough... especially for those who went in default payment because of it and wrecked their credit rating

 

[Saganator]

Geezus. They really need to clean house, top to bottom. Not sure if the Consumer Financial Protection Bureau had anything to do with this, but even if not, just an another example why we need them, and should be given more power. Blows me away how many Trumpers want to gut/kill CFPB all because they don't like Elizabeth Warren.

 

[Az]

I am in banking Compliance and it feels lime Wells Fargo is getting sued on a monthly basis. I have to do a write up every time a big lawsuit like this happens.

But, after doing the review, they do deserve it

 

[SyNapSe]

Good grief. Is there any business unit at WF running on the up and up!?

 

[Blue Submarine No. 6]

Lessons in this thread:

1. Banks are scum.
2. Many people are stupid and can't manage their money.

Nothing new here.

 

[Sulik2]

So I have a car loan through Wells Fargo, how would I find out if this is happening to me?

 

[CampbellzSoup]

Wells Fargo is the worst

 

[Az]

So I have a car loan through Wells Fargo, how would I find out if this is happening to me?

Take a look at your statement. The payment breakdown should show. Also, call them.

If you notice it, write a complaint to the OCC/CFPB (online) asking for a refund. Wells will have to respond within 30 days of receipt unless they request an extension.