How Does the Latest Wells Fargo Scandal Involve Your Car?

Metier Law Firm
Mon, 07 Aug 2017 18:00:35 +0000
Safety Lawyer, WellsFargo

Have you ever felt like you were being overcharged for your car payment? Well, if you are a Wells Fargo auto loan customer you might have been right. A new report from the New York Times shines a light on a new Wells Fargo scandal. However, this scandal might be just as old as the last one.

Was My Car Repossessed Because of the Newest Wells Fargo Scandal?

In the midst of Wells Fargo’s fraudulent accounts scandal, another scandal was being dealt with behind closed doors, or that’s what the New York Times would have you believe. According to the news organization, it found a 60-page internal report that said over 800,000 Wells Fargo auto loan customers were overcharged.

Apparently, there was a collateral protection insurance program that many of these customers paid for yet was not necessary. This oversight was discovered back in July 2016, and the program that caused the mess was shut down in September 2016. So, if the program was found and ended so quickly, what’s the big deal? It seems Wells Fargo didn’t tell anyone about it.

Wells Fargo released information about this scandal just before the New York Times published their exposé on July 27th. That’s just over a year after the overcharges were first discovered. The bank’s investors are angry over this lack of transparency, and are raising questions about the bank’s board of directors. The board hasn’t been changed since before either the ghost account scandal or this insurance scandal, leaving some to wonder if a new guard could be ushered in.

Meanwhile, there is little word about the victims of this latest scandal. Wells Fargo said it’s already in the process of making things right, and analysts believe it will cost the company around $80 million. But how can the company make up for any repossessions, lost jobs, or ruined credit that this scandal may have caused? Right now, the answer seems to be lawsuits, as one class action has already been filed. That means consulting an experienced attorney may be the best answer for some 800,000 people who were wronged by this banking nightmare.