According to Reuters, a newly filed lawsuit alleges that four years before the bank ended its scamming auto insurance program, Wells Fargo executives were specifically warned that the bank’s fraudulent car insurance program could be overcharging customers. According to the report, a complaint released from seal this week said that executives were briefed in 2012 about the auto insurance program which was ended in 2016. which resulted in 800,000 people being forced to buy insurance they didn’t need. The bank called it “collateral protection insurance.” Reuters reports that company execs were warned that the plan could be overcharging customers four years before the bank ended the program in September 2016.
The class action lawsuit was filed in August of this year in the Central District of California but was kept under seal at the request of Wells Fargo until some details were released this week. It is unusual for such a case to be sealed by the court and unclear as to why this was kept from the public The plaintiffs in the suit are seeking reimbursement for wrongful charges and say that Wells Fargo pressured drivers with poor credit into insurance policies more often than well-off customers.
In television commercials, Wells Fargo says that “we’re sorry we screwed up.”