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(Newser)
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Wells Fargo agreed to pay at least $ 385 million to settle a lawsuit in California, alleging that she had signed thousands of borrower clients for expensive auto insurance without their consent, which led many of them 39 between them upon repossession of their vehicle. The bank filed the deal Thursday in federal court in Santa Ana. This still requires the approval of a judge, according to the AP. Another accused, National General Insurance, agreed to pay $ 7.5 million, the New York Post reported. Wells Fargo confirmed the deal on Friday and called it "an important step to get things right". The bank statement states that she will send checks to the relevant customers. The 2017 class action alleged that for more than a decade, Wells Fargo had opted for auto insurance for customers, which they did not need because they had private insurance.
Some 25,000 car owners were unable to pay the extra fees and recovered their vehicles, according to the lawsuit. The bank recognized in 2017 that 800 million auto loans had been added to unnecessary insurance costs, including one in a series of scandals involving the banking giant, starting in 2016 with the discovery of millions of fake accounts checks opened by its employees to respect its sales quotas. . This led to the resignation of CEO John Stumpf. Last year, the US Federal Reserve limited the size of Wells Fargo's assets and Stumpf's replacement, Tim Sloan, resigned in March. New irregularities appeared on his watch, including auto loan issues. Federal regulators who lost patience with Wells Fargo's persistent misconduct inflicted stiff penalties: Wells was fined $ 1 billion last year. But more importantly, the Federal Reserve intervened and handcuffed Wells' ability to expand its business until the bank could prove that it had put its affairs in order. (Read more stories from Wells Fargo.)
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