A internal report from executives at Wells Fargo has determined more than 800,000 people who took out loans for their vehicles were forced into buying unnecessary auto insurance. Some of those people are still paying for the coverage, and the expense has pushed a quarter million of them into delinquency. Additionally, some 25,000 people suffered wrongful vehicle possessions as a result of this practice.
The 60-page report was obtained by New York Times reporters, who noted that some of those affected included members of the U.S. military who were on active duty.
As our debt defense lawyers know well, this is not the first time Wells Fargo has landed in hot water for strong-arming customers into coverage or accounts they did not need. Most recently, the company incurred millions of dollars in fines when it was revealed employees generated millions of bank accounts and credit cards for which customers never asked. The fines were imposed on the bank just last year. Continue reading