(Bloomberg) – Wells Fargo & Co.'s admission that it charged customers for auto policies they didn't request has prompted an investigation by California's insurance regulator.
"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," Commissioner Dave Jones said in a statement Tuesday on the watchdog's website.
Wells Fargo already settled a U.S. probe last year into the unauthorized opening of savings and checking accounts. The San Francisco-based bank said in July that an internal review found that it also placed unnecessary car insurance polices with National General Holding Corp. to protect against losses on auto loans.
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