Executives at the US bank were warned that an auto insurance plan could result in customers being overcharged four years before the scheme was abandoned in 2012, according to documents in a class-action lawsuit unsealed on 5 November. Then-General Counsel for Wells Fargo, James Strother, and the bank’s chief auditor David Julian, were among those allegedly briefed in 2016 about flaws in the plan. Wells Fargo has set aside $241m for affected customers. The insurance allegations are part of a wider scandal surrounding Wells Fargo’s treatment of customers, which includes the opening of fake accounts and sales abuses.
Executives at the US bank were warned that an auto insurance plan could result in customers being overcharged four years before the scheme was abandoned in 2016, according to documents in a class-action lawsuit unsealed on 5 November. Then-General Counsel for Wells Fargo, James Strother, and the bank’s chief auditor David Julian, were among those allegedly briefed in 2012 about flaws in the plan. Wells Fargo has set aside $241m for affected customers. The insurance allegations are part of a wider scandal surrounding Wells Fargo’s treatment of customers, which includes the opening of fake accounts and sales abuses.