Wells Fargo Seeks to Limit Payout for Faulty Auto Insurance Plan


Wells Fargo & Co. is fighting to shut some customers out of a sweeping plan to compensate around 600,000 drivers it pushed into car insurance they did not need, according to court documents and a source familiar with the effort.

U.S. regulators fined Wells Fargo $1 billion in April over the insurance program and told the bank to compensate drivers who were harmed. Those drivers are also suing Wells Fargo in a federal court in California for more compensation that the bank is willing to pay.
The erroneous insurance program lasted from 2002 to 2016, but the bank only intends to compensate drivers forced to policies from 2005, said Wells Fargo, a federal judge overseeing the case.

Wells Fargo’s reluctance to compensate all drivers conflicts with the commitment to help each injured customer and intensify the supervision of banks full of scandal.

Lawyers for the drivers said that the compensation plan should cover the entire life of the insurance program, but the bank has not been persuaded, according to court documents received by Reuters.

Roland Tellis, a lawyer for drivers, said at a hearing in August that is there is no reliable reason for not going back to the beginning of the program Sür.

Tellis did not respond to your requests.

Wells Fargo’s CEO, Tim Sloan, told lawmakers last year that the bank “has been working diligently to do the job right for every customer that is hurt.”
However, the lawyer of the bank claimed that in the same court, he had already “agreed” by allowing payments from 2005 to 2016, according to the official court transcript.

The lawyer told Wells Fargo’s records in the first three years of his insurance program but in a separate database for the 2005-2016 files. He didn’t explain why the bank didn’t want to access his previous database and refused to elaborate when the bank contacted Reuters.

The bank’s spokesperson can make a claim by contacting the bank directly with any driver who believes he or she has harmed the insurance program.

. We invite them to contact us with insurance information,. Wells Fargo told Reuters.

Tellis and other lawyers want a payment that exceeds three times how much drivers are charged, which can add cost and uncertainty to a scandal that worries investors.

The final conditions of the special case may affect the ongoing improvement plan that the bank has agreed with the federal regulators.

The Consumer Financial Protection Bureau (CFPB) has allowed the bank to limit its payment plan to the period of 2005-2016, in conjunction with the bank, in April. The office spokesman refused to comment on the scope of the payment plan.

The Money Accumulators Office (OCC) in April declined to comment. The placement of the OCC did not specify a specific time frame for payments.

Throughout the summer, the OCC dismissed its client’s repayment plan with Joseph Oting, the bank’s chief of the OCC, and told MPs in October that it was CC not comfortable O with the bank’s efforts.

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