Scandal-plagued Wells Fargo is back in hot water for signing customers up for products that they didn’t need or want. This time it’s auto insurance, and the bank says it may have cost about 20,000 people their cars.
San Francisco-based Wells Fargo acknowledged that it enrolled roughly 570,000 auto loan borrowers for what’s known as collateral production insurance on their vehicles when the customers already had appropriate insurance.
The feckless company will pay $80 million in refunds and account adjustments to those people.
Nearly a year ago, Wells Fargo admitted that its employees opened up to 2 million accounts for customers without getting their permission in order to meet overly aggressive sales goals. The bank paid $180 million in fines and penalties and recently reached a settlement to pay an additional $142 million to customers through a class-action lawsuit.
That scandal cost then-CEO John Stumpf his job, but he kept millions of dollars in stolen money.
Wells Fargo should be prosecuted for a hate crime. It’s CEO and board of directors should be sent to prison.
Source: San Francisco Chronicle