Wells Fargo is Facing an Auto Insurance Class Action Lawsuit

Wells Fargo

A class action lawsuit is filed against Wells Fargo. The suit accuses the bank of making customers spend money on the auto insurance, which wasn’t necessary. In addition to that, it caused some customers to experience financial difficulty, as their vehicles were repossessed.

The lawsuit asserts that Wells Fargo made millions of dollars in a deceitful manner at the expense of unsuspecting customers. Actually, these customers had to pay for the auto insurance they never asked for. Thus, this resulted in about 25 000 vehicle repositions.

Plaintiff

The plaintiff who filed the consumer fraud lawsuit against Wells Fargo is Paul Hancock, who comes from Indianapolis. According to the information provided by the plaintiff, the defendant received kickbacks from National General Holdings Corp. (via shared commissions on the policies). It was in February 2013, when the bank ceased the process of sharing in commissions from the insurance, as the New York Times notes.

Details

So, the plaintiff mentions in his complaint that during the process of taking out loans for buying vehicles, both the bank and the insurance company failed to find out whether car buyers had coverage. In other words, they simply didn’t pay any attention to this information.  So, the bank made collateral protection insurance for car shoppers. Furthermore, the suit alleges the defendant included premium charges in the customers’ auto loan bills. The plaintiff also mentions that frequently Wells Fargo didn’t let the customers know about it.

So, the bank made collateral protection insurance for car shoppers. Furthermore, the suit alleges the defendant included premium charges in the customers’ auto loan bills. The plaintiff also mentions that frequently Wells Fargo didn’t let the customers know about it.

Bloomberg informs the defendant referred to thousands of vehicle buyers, whom the bank pushed into loan defaults. As a consequence, they had to pay money for the insurance, which they didn’t want. The bank mentioned that the results of the internal review show 500000 customers may have spent money for having protection against car loss or damage unwillingly. This occurred when they made their loan payments on a monthly basis. In fact, many of the customers already had their own policies. The defendant stopped the insurance

This occurred when they made their loan payments on a monthly basis. In fact, many of the customers already had their own policies. The defendant stopped the insurance program when it became aware of errors in September 2016.

 

What the lawsuit seeks

The plaintiff accuses the defendant of placing a CPI loan on a car, which he purchased in February 2016. He had to pay $598 for it. Hancock adds he contacted Wells Fargo many times and let them know about his insurance policy from Allstate. However, Wells Fargo didn’t pay ignored this information and didn’t agree to reimburse the money. So, the plaintiff went on paying for the policy. Moreover, the defendant charged a late fee as well.

The plaintiff is seeking the following: restitution, as well as disgorgement of all profits. It also includes three times damages incurred by all the plaintiffs.

 

 

 

 

 

 

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