Wells Fargo Forced-Placed Auto Insurance
In re Wells Fargo Collateral Protection Insurance Litigation
United States District Court for the Central District of California
Case No. 8:17-ml-02797
On November 20, 2019, the Court granted final approval of the Class Action Settlement, certifying a settlement class defined as:
All Wells Fargo Dealer Services (“WFDS”) Customers who had a CPI Policy placed on their Account(s) that became effective at any time between October 15, 2005 and September 30, 2016 and Wells Fargo Auto Finance (“WFAF”) Customers who had a CPI Policy placed on their Account(s) that became effective at any time between February 2, 2006 and September 1, 2011.
More information, including a copy of the notice mailed to class members, case deadlines, and FAQs can be found on the settlement website: http://www.wellsfargocpisettlement.com/en.
On July 31, 2017, Keller Rohrback L.L.P. filed a class action lawsuit against Wells Fargo alleging the bank victimized its customers by charging them for unwanted auto insurance that they did not need. In October 2017, the case was consolidated with other cases filed nationwide in an MDL (Multi-District Litigation) and transferred to the Central District of California.
Wells Fargo admitted that it placed unnecessary auto insurance on auto loan borrowers’ accounts, which reportedly resulted in hundreds of thousands of customers going into delinquency on their loans, and over 20,000 customers losing their vehicles to repossession.
The complaint, filed on behalf of Wells Fargo auto loan consumers nationwide, includes detailed allegations about Wells Fargo’s and National General Insurance Company’s illegal practices and the significant stress, hardship, and financial losses that they caused Wells Fargo’s customers.
In late 2018, Wells Fargo began making payments to those who were charged for this unnecessary insurance. They have set up a website for the “Wells Fargo Auto CPI Payment Program,” which can be found HERE. If you believe you may have been charged for insurance when you already carried your own policy, you can contact Wells Fargo at the number or email on that website.
On April 20, 2018, the Consumer Financial Protection Bureau (CFPB) in collaboration with the Office of the Comptroller of the Currency (OCC) announced a $1 billion civil penalty against Wells Fargo for its “reckless” and “unsound” consumer practices relating to mortgage rate-lock extension fees and forced-placed auto insurance. You can view the related orders at the following links:
CFPB: Consent Order
Complaint – 07/31/2017
Amended Complaint – 08/11/2017
JPML Transfer Order – 10/05/2017
Consolidated Class Action Complaint – 01/26/2018
Order Granting Final Settlement Approval – 11/20/2019