Wells Fargo Agrees to Pay $385 Million to Settle Insurance Scam

June 6, 2019, 11:57 PM UTC

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 Thursday in federal court in Santa Ana, California. National General, an auto insurance underwriter, will pay an additional $7.5 million, according to the filing.

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. ...

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