California Commissioner Dave Jones has ordered an investigation into recent allegations that Wells Fargo and National General Insurance improperly charged consumers for “force-placed” auto insurance for consumers who had auto loans with Wells Fargo.
Wells Fargo in a July 27 news release acknowledged the company failed to properly manage the program and announced it was taking steps to refund and compensate consumers affected by the improperly placed insurance and assisting with correcting those consumers’ credit reports, which were negatively impacted by the force or lender-placed insurance.
“These most recent revelations by Wells Fargo are particularly troubling,” Jones said in a statement. “The department will investigate fully to determine the extent to which California consumers were affected by improper placement of force or lender-placed auto insurance and seek corrective action and penalties in the event that California’s consumer protection laws were violated.”
The California Department of Insurance also has an investigation underway regarding allegations that Wells Fargo signed consumers up for life insurance without their consent.
Jones also directed the department to work with other state insurance regulators who might be opening investigations of Wells Fargo and National General Insurance.
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