Wells Fargo Gap Insurance Settlement Update: Class Action Brief, Class Group Information, And More Information Released
Claimants in the Armando Herrera et al. v. Wells Fargo GAP Insurance Settlement case take heed! The settlement details have been released recently on several outlets online, and we here at Consider The Consumer are more than happy to provide you with the key information to know about.
Wells Fargo GAP Insurance Class Action Revisited
It is worth noting that Wells Fargo has agreed to shell out $500 million as the main settlement fund to end the Wells Fargo GAP Insurance Class Action Lawsuit litigation process.
Filed by plaintiff Armando Herrera and others in a California federal court, the aforementioned class action centered upon the claims that Wells Fargo did not pay back their car loan borrowers’ GAP or guaranteed auto protection insurance. It is a type of insurance that car loan borrowers are required to pay the moment they will buy a new car after their car loans are granted by a financing institution such as a bank.
Although a loan holder can get their GAP insurance back if they were able to finish their loan earlier than the first agreed-upon term, Wells Fargo allegedly did not refund its car loan borrowers of their GAP insurance.
Wells Fargo ended up agreeing to select conditions set upon by the settlement agreement presented to them. However, they vehemently denied any misdeeds on their end. To date, the court hearing the class action has not rendered any decision in favor of neither the plaintiff nor the defendant.
As of writing, it is reported that Wells Fargo has already been able to distribute a fraction of the settlement fund to eligible claimants. Reports suggest that the bank is already able to pay out countless qualified Class members that amounted to above $33 million. Yet this is a far cry from the $500 million total settlement fund aimed to be divided amongst claimants.
Wells Fargo GAP Insurance Class Action Settlement Agreement’s Key Details
Listed below are some of the key details one should know to be abreast of the latest developments in the Wells Fargo GAP Insurance Settlement.
This settlement case will cover two Class groups as approved by the court:
- The Class group includes car loan borrowers whose loan terms ended earlier than what was agreed upon, and GAP agreements were with Wells Fargo and did not receive any insurance refund at the conclusion of their car loans.
- The Statutory Class includes car loan borrowers who entered into loan agreements bundled with GAP insurance with Wells Fargo that were subjected to the law and did not receive any insurance refund at the early end of their car loan terms; additionally, individuals who Wells Fargo was not notified of receiving any GAP refund is covered under the Statutory Class group.
The abovementioned Class groups have different Class Period information for each participant residing in different states.
- On or after the 27th of February 2015 for those living in the states of Alaska, Colorado, Delaware, Maryland, Mississippi, New Hampshire, North Carolina, and South Carolina;
- On or after the 27th of February 2014 for California, Pennsylvania, and Texas residents;
- On or after the 27th of February 2013 for claimants in Arkansas, Florida, Idaho, Kansas, Nebraska, Oklahoma, and Virginia;
- On or after the 27th of February 2012 for those in the following states: Alabama, Arizona, Connecticut, Georgia, Hawaii, Massachusetts, Maine, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, North Dakota, Oregon, South Dakota, Tennessee, Utah, Vermont, Washington, and Wisconsin;
- On or after the 27th of February 2010 for Montana and Ohio residents;
- On or after the 27th of February 2008 for members of the Class living in the states of Illinois, Indiana, Iowa, Louisiana, Missouri, Rhode Island, West Virginia, and Wyoming;
- On or after the 27th of February 2003 to those living in Kentucky.
Statutory Class group:
- On or after the 17th of October 2019 for those living in New Jersey;
- On or after the 1st of July 2017 for Texas residents;
- On or after the 1st of January 2016 for Nevada and Oregon members;
- On or after the 27th of February 2015 to Colorado and Maryland residents;
- On or after the 27th of February 2013 for Nebraska Statutory Class group participants;
- On or after the 27th of February 2012 for individuals living in the states of Alabama, Massachusetts, Vermont, and Wisconsin;
- On or after the 27th of February 2008 for those in Iowa and Indiana.
The amount each qualified claimant can receive depends on the GAP insurance price they paid upfront when they signed up for a car loan with Wells Fargo, subject to deductions like cancellation fees and the like. Additional compensation that will be computed based on the maturity rate figures will also be added to the settlement checks eligible Class members can receive.
The $500 million total settlement by Wells Fargo will be solely used for distribution amongst qualified claimants. Other related legal fees such as attorney fees, legal costs, and others will be paid separately by Wells Fargo.
Claimants who wish to join the settlement proceedings or want to object to the settlement conditions can file their claims until the 6th of October 2021.
The Wells Fargo GAP Insurance Settlement’s final approval hearing is scheduled on the 15th of November 2021.
About Wells Fargo
Wells Fargo is a California-based banking and financial services company founded in 1852. According to the company’s official site, Wells Fargo boasts more than a trillion dollars worth of assets. As of writing, there are more than seven thousand Wells Fargo locations nationwide, with the company employing more than a quarter-million employees in 2020.
Editor’s Note on Armando Herrera Settlement 2021 – Wells Fargo To Settle GAP Insurance Class Action Lawsuit For $500 Million:
This feature aims to report on the latest class action settlement Wells Fargo has decided to enter to end the legal difficulties it is facing in court in connection with the allegations of not returning their customers’ GAP insurance coverage.
Case Name(s) & No.(s): Armando Herrera, et al. v. Wells Fargo Bank; Case No.: 8:18-cv-00332
Jurisdiction: United States District Court for the Central District of California
Products/Services Involved: Wells Fargo’s auto loan car insurance
Allegation(s): Wells Fargo withheld the return of a customer’s GAP insurance though they finished on their vehicle loans ahead of time.
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