Wells Fargo required more than 800,000 customers who took out car loans to buy auto insurance they did not need, the New York Times reported, citing an internal report from the bank.
The cost of the unnecessary insurance pushed around 274,000 customers into delinquency and resulted in nearly 25,000 wrongful vehicle repossessions, the article said, citing the 60-page report prepared by consulting firm Oliver Wyman.
The internal report examined insurance policies sold to Wells Fargo customers from the beginning of 2012 through mid-2016, the article said, noting the practice began as early as 2006 and continued through September of 2016.
Wells Fargo officials confirmed to the New York Times that the insurance practices occurred and that the bank was planning to make customers whole, the New York Times report said.
Wells Fargo didn’t immediately respond to CNBC’s request for comment, which was sent outside of office hours.
Source: cnbc china
Wells Fargo reportedly forced car loan customers to buy auto insurance