Wells Fargo in another scandal
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.