Wells Fargo execs known car insurance as injured customers, says lawsuits
Members of Wells Faros Risk Management Committee were informed in April and July 2012 of "critical issues" about the insurance program known as security protection insurance, or KPI, a complaint unsealed by a judge on Monday's claim.
"Although Wells Fargo leaders had long known that the CPI scheme hurt customers, Wells Fargo broke only in September 2016, saying the complaint action from customers.
The leaders allegedly informed of Wells Fargo's lack of insurance policies include David Julian, the former chief auditor of the bank.
Getting on the phone on Wednesday, Julian refused to comment on the allegations or detailing why he is on leave.
Lawsuits claim that other executives informed about car insurance issues include former chief administrator Pat Callahan, former Secretary General James Strother and former Chief of Police Michael Loughlin. These leaders, who all retired for the last three years, could not be reached for k
In a statement, Wells Fargo pointed out that the bank concluded the insurance program in September 2016.
"Since then, we have reviewed customer accounts and developed a cleaning plan – as we hope to finish soon –
Up to 20,000 cars repayed
Wells Fargo deposited $ 241 million in the third quarter to repay clients who were injured by the insurance program.
Car insurance class lawsuit was picked up by more than a dozen borrowers who were charged for insurance after receiving car loans through Wells Fargo .
Wells Fargo has said that up to 570,000 auto borrowers were charged for car insurance without their knowledge. As many as 20,000 of these customers may have defaulted their car loans or had their vehicles returned in part because of these unnecessary insurance costs.
Samir Hanef, a clinical social worker from North Carolina, said that his Honda Civic was repossessed even though he stopped his car loan payments every month.
