Remember last year when the bank was fined $190,000,000 for inventing accounts for their existing customers? Well, this year the issue is car insurance. More than 800,000 customers who took out car loans from Wells Fargo were charged for car insurance they did not need, A goodly number (274,000) of them went into delinquency; 25,000 had their car repossessed. This was over a 4.5 year period. Furthermore, the insurance, which the bank required, was more expensive than auto insurance that customers often already had obtained on their own. It is estimated that the bank owed $73 million to wronged customers. Customers also got hit for repossession costs, late fees, charges for insufficient funds and damage to their credit reports.
Although the bank was required by state law to notify customers of the insurance before it was imposed, it did not always do so.