Haeggquist & Eck, LLP Announces Investigation of Potential Corporate Misconduct at Wells Fargo & Company Concerning Alleged Improper Practice of Requiring Unnecessary Insurance Payments to Secure Auto Loans

Business Wire

SAN DIEGO--(BUSINESS WIRE)-- Haeggquist & Eck, LLP a shareholder rights litigation firm, announces an investigation of potential corporate misconduct at Wells Fargo & Company (the “Company” or “Wells Fargo”) (NYSE: WFC) in connection with a purported practice whereby customers were required to obtain unneeded and/or unwanted auto insurance policies, often referred to as “collateral protection insurance” (“CPI”). According to recent reports, the Company’s customers were required to pay for auto insurance through Wells Fargo and/or its third-party service providers when initiating an auto loan, even if the customer already had auto insurance provided through another carrier.

On July 27, 2017, Wells Fargo announced that a review purportedly revealed that approximately 490,000 borrowers had CPI placed when they already had adequate voluntary insurance, approximately 60,000 borrowers did not receive the disclosures required by law prior to the placement of CPI, and approximately 20,000 borrowers suffered a car repossession after the wrongful CPI charges contributed to a default on their car loan. Wells Fargo said it would pay approximately $80 million to these borrowers, in cash and account adjustments, to cover the costs of the premiums and some fees, and, for those who suffered repossession, the partial value of the car.

Proposed class actions by consumers have already been filed against the Company related to these alleged practices. Certain of these actions name, as additional corporate defendants, Wells Fargo Bank, N.A., Wells Fargo Dealer Services, Inc., Balboa Insurance Company, and National General Insurance Company.

Wells Fargo Shareholders and Consumers Have Legal Options

Concerned Wells Fargo shareholders and consumers who would like more information about remedies from the alleged misconduct surrounding the above described conduct may contact attorneys Amber Eck or Kathleen Herkenhoff at 619-342-8000, ambere@haelaw.com or kathleenh@haelaw.com.

Haeggquist & Eck, LLP is a nationally recognized leader in shareholder rights and consumer protection law. The firm represents individual investors in shareholder derivative lawsuits, and members of the firm have helped shareholders recover more than $1 billion of value for themselves and the companies in which they have invested.