Wells Fargo is now under fire for charging nearly 1 million customers with fake car insurance that sent many of them spiraling into fraudulent debt.
Source: The Free Thought/Rachel Blevins
One of the largest banks in the United States is no stranger to scandal, and the latest case of fraud surrounding Wells Fargo has affected nearly 1 million people, with many of them still paying the price for fraudulent charges attached to their accounts.
According to an internal report from the bank’s executives, detailed in a report by The New York Times this week, more than 800,000 people who took out car loans from Wells Fargo were charged for auto insurance they did not need, and the additional expenses “pushed roughly 274,000 Wells Fargo customers into delinquency and resulted in almost 25,000 wrongful vehicle repossession.”
The report looked at the insurance policies sold to Wells Fargo customers from January 2012 to July 2016. State insurance regulations required the bank to notify customers of the insurance policy—which was typically more expensive than the auto insurance customers had already purchased—before it was imposed. However, the report found that in many cases, Wells Fargo did not comply.