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.
- 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.
- 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