Wells Fargo & Co will ramp up its auto lending volume following about a year and a half of intentionally pulling back from the market, Chief Executive Officer Tim Sloan said in an interview with Bloomberg today.
“We’ve pulled back enough and now we’re going to be growing that business again,” Sloan said of the bank’s auto lending division.
The bank’s auto portfolio dropped by $8.9 billion year over year to $53.3 billion in total outstandings by the end of 2017, according to the Big Wheels Auto Finance report. Wells Fargo Auto reported $49.6 billion in total outstandings during the first quarter — an 18% drop year over year, according to earnings.
Senior Executive Vice President and Chief Financial Officer John Shrewsberry, said the company could “start to increase originations over time,” during the first quarter earnings call, but doesn’t expect portfolio balances to grow until 2019.
The pullback began in late 2016 amid the start of the banks’s various scandals from faked checking accounts to the illegal repossession of active-duty servicemember’s cars.
In April, Wells Fargo was fined $1 billion by the Consumer Financial Protection Bureau in part for automatically charging consumers for insurance they had already purchased from a third party provider. However, consumer remediation is still outstanding as the bank is required to submit to the bureau its proposal to adequately pay back consumers that have been harmed.2 - Readers Like This Post