The New York insurance company that wrote policies for 800,000 questionable Wells Fargo auto loans has been dragged into the bank’s latest scandal.
National General Insurance was named in a class-action lawsuit filed against the bank — for allegedly unduly profiting from $80 million in collateral protection insurance that the drivers didn’t need — and didn’t know they were paying for.
Katherine Jacobs, an Alabama woman who was charged for the CPI, had her finances damaged by the additional costs, she claims in her Manhattan federal court suit.
WASHINGTON (Reuters) – Democratic lawmakers pushed on Tuesday for another chance to question Wells Fargo & Co’s (WFC.N) leadership about sales practices after the scandal-hit bank said it forced auto insurance on borrowers who did not need it.
Democrats on the Senate Banking Committee asked its Republican leaders in a letter to summon Wells Fargo Chairman Stephen Sanger and Chief Executive Tim Sloan.
That letter accompanied one sent by Representative Maxine Waters, the top Democrat on the House Financial Services Committee, who wants to know how Wells Fargo wrongly charged roughly 570,000 customers for auto insurance they did not ask for or need, leading to unwarranted delinquencies and car repossessions.