Wells Fargo agrees to pay $385 million to settle insurance scam

Customers say they were signed up for auto insurance without their knowledge or consent when they took out a car loan.

By Edvard Pettersson | June 07, 2019 at 11:20 AM

The alleged insurance scam was one of a series of scandals involving Wells Fargo’s handling of customers’ accounts that has rocked the San Francisco-bank bank since 2016. (Photo: Jason Doiy/ALM)

(Bloomberg) — Wells Fargo & Co. agreed to pay at least $385 million to customers who say they were signed up for auto insurance without their knowledge or consent when they took out a car loan.

Terms of the proposed settlement, which needs to be approved by a judge, were filed in federal court in Santa Ana, Calif. National General, an auto insurance underwriter, will pay an additional $7.5 million, according to the filing.

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