Wells Fargo Continues Probe of Forced Insurance on Military Members

Wells Fargo Dealer Services is prepared to refund $80 million to borrowers wrongly charged for collateral protection insurance (CPI), but the lender is still determining the full impact this policy had on active-duty servicemembers, a spokeswoman told Auto Finance News. “We are reviewing accounts now to determine how many impacted customers are also active-duty servicemembers,” […]
  • William Hoffman
  • August 14, 2017

Wells Fargo’s Insurance Woes Differ From Fake Accounts Scandal, Company Says

On the surface, there are a lot of similarities between Wells Fargo & Co.’s faked checking accounts scandal and Wells Fargo Dealer Services wrongful charges for collateral protection auto insurance — but the lender argues the “root cause” is very different.   In the first instance, bank employees — in order to satisfy sales quotas […]
  • William Hoffman
  • August 9, 2017

Regulators Examine Wells Fargo’s GAP Insurance Policy

Wells Fargo Dealer Services disclosed on Friday that it is now facing scrutiny over its guaranteed asset protection (GAP) insurance refund policies, in addition to last month’s revelation of that it would pay back consumers over errant collateral protection insurance. Wells Fargo Dealer Services is a unit of Wells Fargo & Co., the giant San […]
  • William Hoffman
  • August 8, 2017

Wells Fargo Faces Legal, Congressional Backlash From Insurance Scandal

Wells Fargo Dealer Services has to contend with a subpoena from the N.Y. Department of Financial Services, at least three lawsuits from consumers claiming significant financial harm, and calls from Washington, D.C., for a Congressional investigation into the lender’s practices, following the revelation of its latest scandal. Last week, Wells Fargo confirmed that its collateral […]
  • William Hoffman
  • August 7, 2017

Zego to Expand Pay-as-You-Go Insurance for Gig-Economy Drivers

Zego, an hourly insurer for commercial workers of the gig economy, raised over $1.3 million in seed funding to bring its product to delivery drivers and couriers en masse, the company announced earlier this week. Zego is one of a handful “insurtech” companies trying to innovate the insurance industry. Insurance is typically a product available […]
  • Emma Sandler
  • August 2, 2017

Wells Fargo Falsely Charged Borrowers for Insurance, Agrees to Pay $80MM

Wells Fargo Dealer Services charged more than 800,000 consumers for auto insurance they could not afford — sending nearly 274,000 borrowers into delinquency between 2012 and 2016, according to a 60-page report prepared by consulting firm Oliver Wyman. The bank also wrongfully repossessed some 25,000 vehicles, including those of active duty military members, according to […]
  • Emma Sandler
  • July 28, 2017

Uber to Provide Accident Insurance in France for Free, but There’s a Catch

Uber drivers and couriers in France will automatically receive accident insurance beginning this fall, as Uber and French insurance company Axa said yesterday. But the reason for this is not out of any altruism. Instead, it’s a legal requirement of Uber to comply with France’s latest labor law. Back in May, the French government passed a law […]
  • Emma Sandler
  • July 26, 2017

How Insurance Companies Should Prepare for Autonomous Cars

With the rapid advancement of autonomous vehicles, traditional personal auto insurance has the potential to be severely disrupted by new competition and shifts to other types of insurance coverage. The move to new business models will not be smooth, according to a June report from KPMG entitled, “The chaotic middle: The autonomous vehicle and disruption in […]
  • Emma Sandler
  • July 25, 2017

Blinker to Add F&I Products Into Platform

Blinker plans to integrate insurance, parts, and services into its peer-to-peer car buying app in 2018, after securing lender partners and expanding nationwide, President Danny Martinez told Auto Finance News. “Our priorities are executing geographic expansion and integrating lenders, but we are also looking at how we can serve through the car-ownership lifecycle,” he said. […]
  • Natalie Mattila
  • July 14, 2017

AutoGravity to Roll Insurance, Maintenance Options Into App

AutoGravity is working to incorporate full-service leasing options — maintenance and insurance — onto its platform, Chief Financial Officer Lukas Wickart told Auto Finance News. “On AutoGravity, in the future, you will be able to not just finance a vehicle but add insurance and additional products with your car, so [the platform] becomes more of […]
  • Natalie Mattila
  • July 13, 2017
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