New Scandal Finds Wells Fargo Bought Auto Insurance for Customers Without Their Knowledge

By:
Chris Gaetano
Published Date:
Jul 28, 2017
Wells Fargo

Embattled bank Wells Fargo, already plagued by multiple scandals, adds one more to the pile: more than 800,000 people who took car loans from the bank were charged for auto insurance they didn't need, wreaking havoc on borrowers' finances, according to the New York Times. The bank's policy was that anyone taking out a car loan would automatically be signed up for insurance if they didn't already have it. However, the NYT said that the bank was signing people up for car insurance even if they already had a policy, and that these policies were generally more expensive than the ones customers had already obtained on their own. As a result, 274,000 Wells Fargo customers went into delinquency and almost 25,000 had their cars wrongfully repossessed. Overall, the bank estimates that it would take about $78 million to make their customers whole again. Wells Fargo attributed the problem to poor internal controls. 

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