According to the New York Times, more than 800,000 people who took out car loans from Wells Fargo were charged for auto insurance they did not need, and some of them are still paying for it, according to an internal report prepared for the bank’s executives.
1. How many customers were forced into delinquency and wrongful vehicle repossessions due to the unnecessary auto insurance?
2. During what period were the policies sold?
3. Why did the delinquencies rise so quickly?
4. What will be the consequences for Wells Fargo?
5. What were some of the disclosure violations?
Morgenson, G. (2017). Wells Fargo Forced Unwanted Auto Insurance on Borrowers. The New York Times, July 27 (Retrievable online at https://www.nytimes.com/2017/07/27/business/wells-fargo-unwanted-auto-insurance.html)