Wells Fargo insurance loss surpasses estimates by $50 million
In a recent securities filing, Wells Fargo said that it expects to pay $130 million to customers it had wrongly pushed auto insurance on – approximately $50 million more than it had initially projected.
The bank said that it estimates that it will provide about $100 million in cash remediation and another $30 million in account adjustments under the plan. In July, Well Fargo said it was expecting to pay out $64 million of cash remediation and $16 million in account adjustments.
Wells Fargo was hit with allegations of abusive sales practices last year, with the company reaching a $185 million settlement in September 2016. Last July, the bank admitted that as many as 570,000 customers may have been charged premiums for auto insurance they did not actually need.
The unnecessary charge may have contributed to a number of vehicle repossessions.
In August, Wells Fargo began sending checks for refunds to affected customers, specifically those with policies placed between January 1, 2012 and September 30, 2016 (the last day when the practice was discontinued).
The Charlotte Observer reported that the time period in which customers may have qualified for remediation...