Exclusive: Wells Fargo faces sanctions for auto insurance payouts - sources [View all]

[Eugene]

Source: Reuters

WASHINGTON (Reuters) - U.S. regulators are preparing to sanction Wells Fargo for receiving commissions on auto insurance policies it helped force on more than half a million drivers, people with direct knowledge of the probes told Reuters.

In July, Wells Fargo blamed a third-party vendor for wrongly layering insurance policies on its auto borrowers. Wells Fargo did not explain that it received payouts when those policies were written.

The fact that Wells Fargo stood to profit from the insurance program will form the backbone of fresh sanctions against the bank, said people with knowledge of the matter who were not authorized to speak publicly.

Those penalties would be the latest in a long-running scandal over how the nation’s third-largest lender treated its customers.

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BUSINESS NEWS MARCH 15, 2018 / 1:13 AM / UPDATED 3 HOURS AGO
Patrick Rucker
4 MIN READ


Read more: https://www.reuters.com/article/us-wells-fargo-accounts-auto-exclusive/exclusive-wells-fargo-faces-sanctions-for-auto-insurance-payouts-sources-idUSKCN1GR0G3