Wells Fargo Seeks to Limit Payout for Insurance Issue
Nov. 26, 2018—Wells Fargo & Co. is fighting to shut some customers out of a sweeping plan to compensate around 600,000 drivers it pushed into car insurance they did not need, according to court documents and a source familiar with the effort, reported Insurance Journal.
U.S. regulators fined Wells Fargo $1 billion in April over the insurance program and told the bank to compensate drivers who were harmed. Those drivers are also suing Wells Fargo in a federal court in California for more compensation than the bank is willing to pay.
The faulty insurance program ran from 2002-16 but the bank only intends to compensate drivers forced into policies from 2005 on, Wells Fargo has told the federal judge overseeing the case.