California to Launch Probe into Wells Fargo’s Auto Insurance Practices

California Insurance Commissioner Dave Jones has ordered the California Department of Insurance to launch an investigation into Wells Fargo and National General Insurance, after Wells Fargo acknowledged that it forced auto insurance on thousands of its car-loan customers.

On July 27, Wells Fargo admitted that it failed to properly manage its collateral insurance protection program and that the blunder resulted in thousands of delinquencies and wrongful vehicle repossessions. The bank said it has allocated $80 million to compensate victims – $64 million for “cash remediation” and $16 million for “account adjustments.”

Read on.

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