Law Firm Investigating Claims of Wells Fargo Car Insurance Misconduct
Hundreds of thousands of consumers who obtained car loans from Wells Fargo are potentially affected
A New York law firm is looking into claims that hundreds of thousands of consumers who obtained car loans from Wells Fargo were charged for auto insurance that they did not want or need.
More Expensive Policies
According to Squitieri & Fearon, LLP, the auto insurance policies in question were written by National General Insurance. The firm says that these polices were more expensive than insurance that customers had obtained on their own.
The firm alleges that Wells Fargo often did not notify the borrowers before placing the insurance. As result, Wells Fargo took larger payments from customers' accounts—often causing those accounts to be overdrawn and frequently leading to borrowers defaulting on their loans and sometimes having their cars repossessed.
Further, the firm alleges that, for a period of time, Wells Fargo may have been splitting the additional insurance premiums with the insurance carrier.