Wells Fargo To Repay $80M After Forcing Auto Insurance On Borrowers

NEW YORK (AP) — San Francisco-based Wells Fargo is paying $80 million to customers who the bank signed up and charged for auto insurance that they did not want or need.

The bank said Friday that roughly 570,000 customers were affected and will be getting refunds.

Like most auto loan companies, Wells Fargo required borrowers to have comprehensive and collision insurance. If they didn’t have comprehensive coverage, Wells Fargo would purchase it for the customer and charge them for it.

Wells Fargo admits its systems signed up customers who already had insurance and that some premiums “may have contributed to a default that led to their vehicle’s repossession.”

Nearly a year ago, Wells Fargo admitted its employees opened up to 2 million accounts for customers without getting their permission in order to meet sales targets.

TM and © Copyright 2017 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2017 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten. The Associated Press contributed to this report.

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