It has been reported that the well known, almost infamous, financial company/bank, Wells Fargo, has been automatically signing up car loan borrowers with car insurance, even if these customers were already covered. The company then demanded payment for these car premiums and put hundreds of thousands of people into default. If you have had any Wells Fargo Auto Loans you can certainly be at risk. If this is the case, please contact us immediately.
Per usual, most of the people affected did not notice the charges, or at least not right away, as they were deducted automatically from their Wells Fargo bank accounts. Consumers that did not, or could not, pay were deemed “in default,” resulting in repossessions of cars for thousands of dollars, with a slew of repossession fees atop that already high cost. Overdraft fees were also collected after the automatic withdrawals when applicable.
As they have done before, NYC based law firm Levi & Korsinsky has reached out to us, aiding people that have been affected to contact them at once to try and stop the bleeding and get the help they deserve. In an email, Levi & Korsinsky has stated the following:
Levi & Korsinsky, LLP is investigating allegations that Wells Fargo Bank, N.A. and National General Insurance Company forced the placement of insurance on Wells Fargo auto loan customers without their knowledge or consent. In some cases, they may even have arranged for monthly premiums to be fraudulently withdrawn from those customers’ bank accounts.
The auto insurance policies at issue in this case are commonly referred to as Collateral Protection Insurance (“CPI”) which are similar to auto insurance policies commonly taken out by vehicle owners to cover the cost of damage to their vehicle. Neither Wells Fargo nor National General, which underwrote the CPI policies, checked their internal database to see if their customers had insurance coverage, or, if they did, they simply ignored what they learned. Instead, Wells Fargo and National General enrolled Wells Fargo loan customers into auto insurance coverage and then automatically deducted the cost of the CPI insurance from customers’ bank accounts along with the regularly scheduled principal and interest payment for the auto loan.
If you had Wells Fargo auto insurance and did not sign up for it, learn more.
This story was first reported by the New York Times on July 27, 2017, which quoted a Wells Fargo spokesperson as stating that “We take full responsibility for these errors and are deeply sorry for any harm we caused customers”.
Class Action Central reports that home and auto lenders require borrowers to insure collateral for the loans and can force insurance on borrowers under certain circumstances. Such force-placed insurance can sometimes lead to abuses that benefit the lender or insurance company at the expense of the borrowers and have resulted in regulatory actions and class actions that were settled and returned money to wronged borrowers.
Again, if you have been affected by these allegations as so many have been, please notify us, or Levi & Korsinsky, right away. You may contact us through our complaint portal, or directly by email at email@example.com. To contact a law firm directly, please see the above, or go to ZLK.com.