Wells Fargo is alleged to have overcharged auto loan customers by tacking on insurance fees without customers' permission. Many auto loan customers, who had secured their own auto insurance, were unable to make the Wells Fargo payments, resulting in payment defaults and vehicle repossession.
Wells Fargo is a community-based financial institution that provides auto loans, in addition to traditional banking services. Customers’ auto loan contracts require them to carry comprehensive and collision physical damage insurance. Many customers maintained the requisite insurance through independent auto insurance companies. However, Wells Fargo is alleged to have enrolled over 800,000 auto loan customers in collateral protection insurance policies (CPIs) without their knowledge or authorization. From 2012 to 2016, auto loan customers were allegedly billed for these CPIs, resulting in an estimated 274,000 account delinquencies and 25,000 vehicle repossessions.
If you or anyone you know obtained an auto loan from Wells Fargo, between 2012 and 2016, and paid for collateral protection insurance (CPI), you may have a claim. Contact us to find out more.