Forced Protection: How Will The Industry Respond to Wells Fargo’s Insurance Scandal?

Typically, when one of the nation’s largest auto lenders returns $80 million to consumers it wrongly charged, industry leaders stop to ask how they can prevent a similar scenario at their respective companies. But in the case of Wells Fargo Dealer Services’ admitted mishandling of its force-placed insurance policy, the lender appears to be an […]
  • William Hoffman
  • October 5, 2017

Wells Fargo CEO Addresses Auto Scandals at Barclays Conference

Wells Fargo & Co. Chief Executive Tim Sloan spoke on a number of issues impacting the bank’s auto finance business during a presentation at the 2017 Barclays Financial Services Conference including the forced-insurance scandal, tightened underwriting tactics, and a possible increase in losses due to Hurricane Harvey. When asked about whether the collateral protection insurance […]
  • William Hoffman
  • September 13, 2017

Forced-Insurance Provider Feels ‘Thrown Under the Bus’ by Wells, Analyst Says

Although Wells Fargo Dealer Services is investigating vendor oversight practices in response to its recent force-placed insurance scandal, the coverage provider in question — National General — claims it was in the right, Barry Karfunkel, chief executive of National General said during an earnings call. National General feels like “they got thrown under the bus […]
  • William Hoffman
  • September 6, 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