Last year, we found out that Wells Fargo banking had deceived around 2.1 million of its customers. Employees created unauthorized accounts in customers names and were rewarded by there superiors for committing this fraud. The Wells Fargo scandal has since resulted in over 5,300 firings, the resignation of the CEO, many lawsuits, and a $185 million federal fine. Looking back many people wonder if the consequences the bank received were enough to keep them on the straight and narrow. Today a new Wells Fargo scandal is rising and this new scandal may affect your ability to keep up with your car payments.
The New Wells Fargo Scandal May Have Cost You a Car
As the New York Times prepared to report on a new Wells Fargo scandal, the company released information to its investors and the public at large. Over 800,000 Wells Fargo auto loan customers may have been overcharged for extra insurance. This oversite is estimated to cost the company around $80 million in damages, but the damage to the company’s reputation may be far greater.
The alleged 60-page internal report used as the New York Times’ source not only detailed the problem but when it was discovered—July 2016. Wells Fargo soon stopped the collateral protection insurance program in question by September of 2016. However, the company apparently withheld information about what happened from investors and the public.
This lack of transparency has resulted in many investors losing faith in the bank’s board of directors, all of which were in charge during the fake accounts scandal. This is leading to a drop in Wells Fargo stock and it has inspired new lawsuits. How many people may have had their cars repossessed as a result of this scandal? How many people may have lost their job, or had their credit scores ruined? The trial attorneys here at the Keefe Law Firm will be watching this situation closely to find out.
