Wells Fargo & Co. has been making news due to their auto-loan scandal for months. Even though the banking giant has already paid $1 billion in regulator fines, and agreed to a $480 million settlement for affected drivers, the company is still finding itself in hot water. This time, because Wells Fargo announced that they will only be compensating drivers who were forced into policies from 2005 on. This is controversial because Wells Fargo started running their faulty insurance program in 2002.
Wells Fargo has admitted that it was at fault for this plan, and pledged to help every customer that was hurt by this scandal. Their public refusal to leave three years worth of drivers uncompensated, is a direct contradiction to their pledge and makes it clear that the bank is still not concerned with the welfare of their customers, but the bottom line.
According to Wells Fargo’s lawyers, the reason the bank does not want to go back to 2002 is because those files are located in a different database. One database includes customer data from 2005 on, while another is required to go back before 2005. Why exactly that is such a problem, the lawyer did not say.
This flagrant violation of their pledge, will likely result in another surge of vocal outcry from the Wells Fargo community. As the Insurance Journal rightly points out, “The final terms of the private litigation could affect the ongoing remediation plan the bank agreed with federal regulators.”. If you are in any way affiliated with Wells Fargo, this is a story that you should keep an eye on.