Class-Action Suit Proposed Against Insurer, Wells Fargo
Aug. 13, 2019—A notification program began today, as ordered by the United States District Court for the Central District of California, to alert consumers about a proposed class action settlement in a lawsuit which is pending against Wells Fargo Bank and National General Insurance Company.
The proposed settlement resolves a lawsuit originally filed on July 30, 2017, which alleges that between October 15, 2005 and September 30, 2016, defendants unlawfully placed collateral protection insurance ("CPI") policies on automobile loan accounts.
CPI is a type of insurance that Wells Fargo purchased from National General to cover potential damage to vehicles that served as collateral for Wells Fargo auto loans. The lawsuit alleges, among other things, that the CPI policies that defendants placed on settlement class members' accounts were duplicative, unnecessary, and overpriced.
Notices will be sent to settlement class members and are scheduled to appear in a national online notice campaign leading up to a hearing on October 28, when the court will consider whether to grant final approval to the settlement.