Have a Car Loan With Wells Fargo? Another Scandal Means You May Be Entitled to Recovery
Wells Fargo’s misdeeds are in the news once again as revelations of new schemes by the bank – which is worth $266 billion – to increase corporate profits by defrauding unsuspecting consumers have hit the press. As reported by the New York Times in late July 2017, Wells Fargo has had to admit it engaged in a long-running scheme to bilk its own auto loan customers by forcing unauthorized and often unnecessary auto insurance policies on them – often priced at levels that were, by the bank’s own admission, “considerably more expensive than insurance (customers) can obtain on (their) own” – which led to customers paying for policies they did not want or need. In addition, borrowers of auto loans from Wells Fargo faced even additional costs when the unauthorized premiums were automatically deducted from their accounts, causing overdraft fees and even automobile repossessions.
In reacting to the mounting crisis, Wells Fargo has now announced they will be paying $80 million back to customers affected by these policies. However, for many customers, this will not come close to fully compensating them for their losses.
Wells Fargo Refused to Cancel Policies Even After Customer Complaints
Although the bank claims that the automatic auto insurance policy placements were disclosed to customers seeking auto loans, many thousands of customers have complained that:
- they were never properly made aware of the fact that the bank was opening auto insurance policies on their accounts;
- they never wanted or needed the policies; and
- the bank refused to cancel the automobile insurance policies even when the customers repeatedly contacted Wells Fargo to tell the bank they did not want the policies.
The bank’s internal report showed that at least 270,000 customers faced overdraft fees as a result of the bank pushing unauthorized policies on those customers, and that over 20,000 automobiles were repossessed by the bank due to its own improper practices. Many of those affected by the bank’s predatory practices are military service members.
Hit With an Unauthorized Policy? We Can Help
If you are one of the approximately 570,000 customers identified by Wells Fargo as having been pushed into an unauthorized, automatic insurance policy after taking out a car loan, the complex litigation attorneys at McCune Wright Arevalo are here to help you win justice and obtain the recovery you deserve.
Long before Wells Fargo made national news in 2016 for opening millions of unauthorized accounts, the class action attorneys of McCune Wright Arevalo had successfully taken on the banking giant and won for consumers across in California by obtaining a $203 million judgment against Wells Fargo on behalf of California banking clients in 2010 in connection with the bank’s overdraft practices. Our attorneys are now preparing to use their inside knowledge about the culture and practices at Wells Fargo to fully compensate customers for its illegal and unethical practices, and look forward to obtaining justice on your behalf.
If you are a Wells Fargo customer who has taken out a car loan and believe you may have been the victim of the bank’s practices of automatically issuing car insurance policies, contact the office of McCune Wright Arevalo today to determine your options for financial recovery.