Wells Fargo in an­other scan­dal

The Korea Times - - WORLD BUSINESS -

NEW YORK (AP) — Scan­dal-plagued Wells Fargo is back in hot wa­ter for sign­ing cus­tomers up for prod­ucts that they didn’t need or want. This time it’s auto in­sur­ance, and the bank says it may have cost about 20,000 peo­ple their cars.

San Fran­cisco-based Wells Fargo ac­knowl­edged late Thurs­day that it en­rolled roughly 570,000 auto loan bor­row­ers for what’s known as col­lat­eral pro­duc­tion in­sur­ance on their ve­hi­cles when the cus­tomers al­ready had ap­pro­pri­ate in­sur­ance. It will pay $80 mil­lion in re­funds and ac­count ad­just­ments to those peo­ple.

“We take full re­spon­si­bil­ity for our fail­ure ... and are ex­tremely sorry for any harm this caused our cus­tomers, who ex­pect and de­serve bet­ter from us,” said Franklin Codel, the head of Wells Fargo Con­sumer Lend­ing, in a state­ment.

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