So many things are not going well for the Wells Fargo auto insurance companies right now. At first, Wells Fargo’s auto insurance company was opening new credit card account and deposit accounts without the customer’s knowledge. Now, the auto insurance is receiving even more bad news.
The Wells Fargo auto insurance company announced in a statement that they are in the processes of contacting all of their customers who may have been financially hurt due to their issues relating to the auto Collateral Protection Insurance policies. As for the thousands of clients who were affected are mostly in the Washington areas.
The customer’s problems are due to an auto loan contract. The National General, which is a third party vendor, chose to purchase the policies.
A CIP or Collateral Protection Insurance is suppose to protect against damages or loss of a vehicle. It serves as a collateral loan to secure and ensure the people who can pay for the damages done to the auto said in a statement Wells Fargo’s auto insurance company.
Wells Fargo Not Doing So Hot
From that point, the car insurance company looked for further assistance, but that did not turn out well either. The Wells Fargo Auto insurance company then resulted in their loyal customers having more issues. Customers defaulting on their payment and repossession of their cars.
By the end of 2016, Wells Fargo Auto put a stop to their CPI program to stop the mix up reports the bank. Reports in the national news say that the CPI program violated several state disclosure requirements. The states include Washington, Michigan, Mississippi, Arkansas, and Tennessee.
Over 60,000 of their clients did not receive their complete disclosures from their third party vendor.
In these cases, clients will get a discounts. The discounts will include premiums, expenses, and intrigue. These discounts will cost the company roughly $39 million. The company will payout more money to individuals who lost their cars due to repossession.