Wells Fargo & Co. accepted pay a minimum of $385 million to consumers who say they were registered for auto insurance coverage without their knowledge or consent when they secured a vehicle loan.
Terms of the proposed settlement, which needs to be authorized by a judge, were filed Thursday in federal court in Santa Ana. National General, a car insurance coverage underwriter, will pay an extra $7.5 million, according to the filing.
The supposed insurance coverage scam was one of a series of scandals involving Wells Fargo’s handling of consumers’ accounts that has rocked the San Francisco-bank bank considering that 2016. Earlier this year, it said it may have to invest as much as $2.7 billion more than what it reserved by the end of December to deal with legal matters– increasing its quote of “reasonably possible” legal losses by $500 million from three months earlier.
In the cars and truck insurance coverage lawsuits, Wells Fargo was accused of bilking countless dollars from “unsuspecting consumers who were forced to spend for auto insurance coverage they did not require or want,” pushing almost 250,000 of them into delinquency and resulting in almost 25,000 automobile foreclosures, according to the claim filed in 2017.