Wells Fargo Sued Again For Misbilling Car Owners And Veterans

[Jimbo101]

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Reuters

A new class action lawsuit from a former Wells Fargo customer claimed the bank charged loan customers for auto insurance they did not need. With auto loans, the bank often requires that full coverage auto insurance be bought when the loan is made. However, lead plaintiff Paul Hancock says that Wells Fargo charged him for auto insurance even though he informed them he already had an insurance policy with another company. Wells Fargo also charged him a late fee when he disputed the charge. Wells Fargo does not dispute that it did this to customers and has offered to refund $80 million to 570,000 customers who were charged for insurance. The lawsuit however is to recoup late fees, delinquency charges, and other fees that the refund would not cover.

NPR describes Wells Fargo actually repossessing the car of a man who was "marked as delinquent for not paying this insurance -- which he didn't want or need or even know about." Friday the bank also revealed the number of "potentially unauthorized accounts" from its earlier fake accounts scandal could be much higher than previous estimates -- and that they're now expecting their legal costs to exceed the $3.3 billion they'd already set aside.

And Reuters reports that the bank will also be paying $108 million "to settle a whistleblower lawsuit claiming it charged military veterans hidden fees to refinance their mortgages, and concealed the fees when applying for federal loan guarantees."

[elleng]

1. AND Wells Fargo May Have Found More Fake Accounts Created by Employees.

https://www.nytimes.com/2017/08/04/business/dealbook/wells-fargo-fraud-accounts.html?

[dixiegrrrrl]

2. Unethical mortgage companies do the same thing.

Bank of America, before it sold my mortgaqe to Ditech, would send bills for their insurance and ignore letters and faxes from my insurance agency that I was covered, until the day I got them on the phone and told them I would take them to court because "forced place" insurance is illegal.
Never had a problem after that, and strangely, Ditech, 10 times sloppier than BOA, has not tried it.

Now that the banks are not making free money from our Gov. giving them our taxesy, they have resorted to the old tried and true tricks of back when.