Wells Fargo insurance abuses spur probe by California regulator

The chief executive officer of insurer National General said that it acted appropriately. (AP Photo/Rogelio V. Solis)

(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.