Wells Fargo will pay $385 million after insurance scam
After a scandal involving Wells Fargo’s handling of customers’ accounts, the San Francisco bank has agreed to pay a minimum of $385 million USD to those affected. Customers claim that they were signed up for auto insurance when they took out a car loan, without their consent or knowledge.
The settlement was filed on June 6th and involves National General, an insurance underwriter, who will pay an additional $7.5 million USD.
Wells Fargo said earlier this year that it may have to spend almost $2.7 billion USD more than originally budgeted to resolve legal matters. The company has been dealing with several scandals since 2016.
In the alleged insurance scam, the company was accused of holding millions of dollars from customers forced to pay for auto insurance, causing almost 25,000 vehicle repossessions and 250,000 people pushed into delinquency, according to the 2017 lawsuit.
Source: Wells Fargo Agrees to Pay $385 Million to Settle Insurance Scam