Glancy Prongay & Murray LLP (“GPM”) announces an investigation on behalf of Wells Fargo & Company (“Wells Fargo” or the “Company”) (NYSE: WFC) investors concerning the Company and its officers’ possible violations of federal securities laws. To obtain information or aid in the investigation, please visit the Wells Fargo investigation page on our website at www.glancylaw.com/case/wells-fargo-company.
On July 27, 2017, Wells Fargo disclosed that it would pay approximately $80 million in remediation to customers that may have been financially harmed by the Company’s Collateral Protection Insurance (“CPI”) policies. Wells Fargo stated that “customers may have been charged premiums for CPI even if they were paying for their own vehicle insurance, as required, and in some cases the CPI premiums may have contributed to a default that led to their vehicle’s repossession.”
Shareholders, analysts, lawmakers and consumer advocates demanded answers about how the situation manifested, and why Wells Fargo did not disclose the problems sooner, given existing turmoil over phony deposit and credit card accounts opened in customers’ names without their permission.
“This is a full-blown scandal — again,” said New York City Comptroller Scott Stringer, who oversees public pension funds that hold roughly 11.6 million Wells Fargo shares. “It’s unbelievable, outrageous, sad, and yet quintessential Wells Fargo. This isn’t just a corporate debacle. It’s caused real human harm.”
Stringer called on the bank to install a new independent chair and “immediately” disclose more information.
Wells Fargo first became aware of potential problems a year ago, when the auto lending business began receiving an unusually high number of complaints, Franklin Codel, head of consumer lending, said in an interview.
The auto insurance program was quickly suspended, and the problem escalated to senior management, the board and regulators, he said. Wells Fargo planned to delay public disclosure until it could notify affected customers and reimburse them.