Wells Fargo knew for years that auto insurance was hurting customers, lawsuit says

New York (CNN Business)Wells Fargo executives were warned that the bank’s auto insurance program was harming customers four years before it was shut down, according to a lawsuit.

Wells Fargo admitted last year to charging hundreds of thousands of borrowersfor auto insurance they didn’t need. Some customers even had their vehicles repossessed because of the needless charges.

Members of Wells Fargo’s executive risk management committee were alerted in April and July 2012 to “critical issues” about the insurance program known as collateral protection insurance, or CPI, a complaint unsealed by a judge on Monday alleges.

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