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.
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