Consumer Alert: Forced Unwanted Auto Insurance by Wells Fargo
More than 800,000 people with car loans from Wells Fargo were charged for insurance they did not need! These extra charges reportedly drove 25,000 cars into repossession and 274,000 into delinquency. Many members are military service members. If this happened to you, contact a consumer-protection lawyer immediately!
Here is what appears to have happened: when consumers financed cars, their information was sent to a company that checks for active insurance. If none was found, Wells Fargo imposed expensive coverage to their loans and the payments due. Many consumers did not notice the additional charges and those charges were taken out ahead of interest or principal charges. If a consumer did notice and informed Wells Fargo that they had insurance already, Wells Fargo was supposed to refund. That apparently did not happen on at least some occasions.
Many consumers, including military members, endured Wells Fargo’s aggressive repossession practices for money they never legally owed!