A lawsuit recently filed accuses Wells Fargo & Co. of racketeering violations and fraud after the bank admitted to charging several hundred thousand borrowers for auto insurance they did not ask for or need, causing delinquencies. The delinquencies resulted in additional charges to consumers.
If you have been a victim of fraud on the part of Wells Fargo or another financial institution, contact Attorney Group for more information about your options. We offer free, no-obligation consultations, and if you have a case we can connect you with an affiliated attorney who can assist you throughout the legal process.
Lawsuit: Car Insurance Fraudulently Added to Customers Accounts
Wells Fargo Auto Insurance was unknowingly and unnecessarily added to customers’ accounts. More than 800,000 people who took out car loans from Wells Fargo were charged for auto insurance they did not need, according to an internal report prepared for the bank’s executives.
Reuters reported Wells Fargo announced in July 2017 it would refund about $80 million to an estimated 570,000 customers who were wrongly charged for auto insurance from 2012 to 2017, including roughly 20,000 whose vehicles were repossessed. Wells Fargo stopped collecting the fees last September after some customers expressed concerns.
Catherine Pulley, a Wells Fargo spokesperson, said, “We are very sorry for the inconvenience this caused customers, and we are in the process of notifying them and making things right.”
The expense of the unneeded insurance, which covered collision damage, caused approximately 274,000 Wells Fargo customers into delinquency and resulted in almost 25,000 wrongful vehicle repossessions, according to the 60-page internal bank report. Among the Wells Fargo customers hurt by the practice were military service members on active duty.
According to the lawsuit filed in July 2017, refunds to allegedly defrauded customers are not enough.
Affected Customers May Be Entitled to Compensation
While Wells Fargo has said they intend to offer refunds there are a number of issues those proposed refunds don’t address:
- Potential fraud
- Inflated premiums
- Delinquency charges
- Late fees
- Damage to personal credit
Affected customers may be entitled to additional damages based on deceptive and unfair trade practices, costs associated with credit monitoring and impacted credit reports, and punitive damages to punish the wrongdoing and deter similar conduct in the future. Bank customers who believe they have been the victims of fraud are encouraged to seek legal counsel to learn their rights.
The Time to Pursue a Claim is Limited. Contact Us Today.
If you or a loved one have taken out a Wells Fargo auto loan between 2012-2017, or if you have questions about a possible Wells Fargo lawsuit, contact the Attorney Group for more information. We can answer your questions in a free and confidential consultation, and there is no obligation on your part to speak with us. If you have a case, we can connect you with an affiliated Wells Fargo lawsuit attorney who can assist you through the legal process. State laws limit the time you have to pursue a claim, so contact us today.
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