Wells Fargo & Co. plans to compensate as many as 570,000borrowers who were unwittingly sold car insurance, the latest issue to taintthe U.S. bank.

The San Francisco-based lender will pay as much as $80 millionto customers who may have been “financially harmed” afterpurchasing collateral protection insurance tied to automobileloans, it said in a statement late Thursday.

Inadequate controls

In a review of the program, which was scrapped in September, WellsFargo found that “certain external vendor processes and internalcontrols were inadequate.” As a result, customers may have beencharged premiums even if they were paying for their own vehicleinsurance, and some may have had their vehicles repossessed, thebank said.

Related: Drivers with no credit can pay up to 113% more onauto insurance

The issue follows last year’s revelations that Wells Fargoemployees had been opening potentially millions of accounts in itsretail banking division without customers’ permission. The bankfired more than 5,000 employees over five years, refunded customersand agreed to pay fines totaling $185 million.

“We take full responsibility for our failure to appropriatelymanage the CPI program and are extremely sorry for any harm thiscaused our customers, who expect and deserve better from us,”Franklin Codel, head of consumer lending, said in thestatement.

Cars repossessed

Wells Fargo reviewed policies placed from 2012 to 2017. It willstart sending letters and refund checks to customers next month,and expects the process will be complete by the end of the year,according to the statement.

The insurance protected against loss or damage to a vehicle usedas collateral to secure a loan. For about 20,000 customers, theextra costs may have contributed to defaults that led to therepossession of their automobiles, the bank said. Those borrowerswill receive additional payments to compensate for that loss.

Wells Fargo will also work with credit bureaus to amendcustomers’ credit records, it said.

Last year’s fake-account scandal led to lawsuits, congressionalhearings and John Stumpf’s resignation as chief executiveofficer.

Related: Alliant accused of poaching Wells Fargo insurancebrokers

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