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Wells Fargo to compensate clients for unwanted car insurance

Wells Fargo will pay as much as $80 million to customers who may have been 'financially harmed' after paying for collateral protection insurance tied to automobile loans

By Russell Ward | Updated on July 28, 2017
The insurance protected against loss or damage to a vehicle used as collateral to secure a loan. For about 20,000 customers, the extra costs may have contributed to defaults that led to the repossession of their automobiles. (AP Photo/CX Matiash, File)

Wells Fargo & Co. plans to compensate as many as 570,000 borrowers who were unwittingly sold car insurance, the latest issue to taint the U.S. bank.

The San Francisco-based lender will pay as much as $80 million to customers who may have been “financially harmed” after purchasing collateral protection insurance tied to automobile loans, it said in a statement late Thursday.

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