Wells Fargo, awash in scandal, faces violations over car insurance refunds

 

Source: Gretchen Morgenson, N.Y.Times ( Paid Registration )

Wells Fargo, the scandal-plagued bank, is facing new regulatory scrutiny for not refunding insurance money owed to people who paid off their car loans early, according to people briefed on the inquiry.

Just last month Wells Fargo was found to have forced unneeded collision insurance on consumers who financed their car purchases. That practice, first disclosed by The New York Times, affected 800,000 customers according to an analysis commissioned by the bank. Some 274,000 people were pushed into delinquency as a result, and 25,000 cars were wrongly repossessed.

The latest inquiry, involves a different, specialized type of insurance that is sold to consumers when they buy a car. Called guaranteed auto protection insurance, or GAP, it is intended to protect a lender.

Read Full Article: Wells Fargo, awash in scandal, faces violations over car insurance refunds

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loans, auto insurance, refunds, wells fargo


 
 

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