Collateral Protection Insurance: Are You Paying for Unnecessary Coverage?

October 11, 2013 Last Updated on July 27, 2017

Important Information

Attorneys working with ClassAction.org are no longer reviewing claims for this case. The information here is for reference only. A list of open investigations can be viewed here.

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Case Update

Report: Wells Fargo Forced Unnecessary Auto Insurance on Borrowers

On July 27, 2017, The New York Times reported that it uncovered a 60-page internal document from Wells Fargo that stated more than 800,000 people who went through the bank for their car loans were charged for insurance that they did not need. The report further claims that these individuals may still be paying for this unnecessary coverage. 

At A Glance

This Alert Affects
Consumers who had collateral protection insurance (CPI) force placed on them by their bank or lender.
Damages
Consumers who had to pay the high costs of lender-placed collateral protection insurance may be able to participate in a lawsuit seeking compensation for the money paid out for this coverage.
Company(ies)
Banks, lenders.
Additional Details
CPI is designed to protect lenders in the event that the borrower fails to obtain auto insurance or allows their insurance to lapse.
Type of Lawsuit
Class Action