Wells Fargo Fires Head of Consumer Lending for Violating Company Policies

Wells Fargo & Co. fired Franklin Codel, head of the bank’s consumer lending organization, for inappropriate behavior with a former team member regarding that employee’s earlier termination, the company announced in a press release. Codel, who oversaw the bank’s four main consumer lending branches including auto finance, was dismissed for “acting in a manner that […]
  • William Hoffman
  • November 17, 2017

Charge-Offs Surge 50% as Wells Fargo Halts Repos After Scandal

Wells Fargo Dealer Services’ indirect loan charge-offs increased nearly 50% year over year, driven primarily by the lender’s forced insurance scandal, the company disclosed in its third-quarter earnings. In September 2016, Wells Fargo stopped placing collateral protection insurance (CPI) policies — which charged at least 500,000 borrowers for insurance they didn’t need — and put […]
  • William Hoffman
  • October 25, 2017

Wells Fargo’s Forced-Insurance Compensation Was ‘Insufficient,’ OCC Finds

The Office of the Comptroller of the Currency found that Wells Fargo & Co.’s previous $80 million payout to consumers affected by its force-placed insurance scandal was “insufficient,” according to a document that was leaked on Friday that widely criticized the lender’s practices. Although the OCC report — which was leaked to The New York […]
  • William Hoffman
  • October 20, 2017

Wells Fargo Expects Auto Declines to Continue for Another Year

For the fourth quarter in a row, Wells Fargo Dealer Services’ delinquencies and charge-offs have grown amid a rapidly declining originations volume environment, and the company expects the volume declines to continue into the second half of 2018. Originations were down 47% in the third quarter compared to the same period the year prior, marking […]
  • William Hoffman
  • October 13, 2017

Illegal Repos Cause Veteran Pushback on Forced Arbitration

The Union Veterans Council supported the Consumer Financial Protection Bureau’s ban of forced arbitration clauses in a letter to congress this week, claiming that the “rigged, secretive” practice kept the problem of illegal servicemember vehicle repossessions in the dark. Specifically, the group cites how veterans were denied their day in court prior to the revelation […]
  • William Hoffman
  • October 10, 2017

OCC Recommends Enforcement Against Wells Fargo Amid CEO’s Senate Hearing

The staff at the Office of the Controller of the Currency has recommended enforcement action against Wells Fargo & Co. for improperly charging consumers for auto insurance, according to Reuters. The recommendation was made to the acting chief of the OCC Keith Noreika, who will take the next few weeks to decide on whether to […]
  • William Hoffman
  • October 3, 2017

CFPB Missed Chance to Probe Wells Fargo’s Insurance Scandal, Report Finds

A new report from the House Financial Services Committee argues that the Consumer Financial Protection Bureau stopped its investigation of Wells Fargo & Co.’s faked checking accounts scandal early and missed an opportunity to uncover Wells Fargo Dealer Services’ ensuing collateral protection insurance scandal earlier. The report cites a document referred to as the Recommendation […]
  • William Hoffman
  • September 20, 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

Wells Fargo Slashes Originations 45% in 2Q

Wells Fargo Dealer Services Inc. nearly halved its originations in the second quarter, compared with the prior-year quarter, reflecting tighter underwriting standards, the company reported in its earnings today. The bank originated $4.5 billion worth of auto loans — a 45% decline year over year — as well as a 5% decline in its auto outstandings to […]
  • William Hoffman
  • July 14, 2017

CFPB Scrutinizes Repossession Accounts for Fraud

SAN DIEGO — The Consumer Financial Protection Bureau is questioning lenders about potential fraudulent data in accounts slated for repossession, Calvin Hagins, the agency’s deputy assistant director for originations, said while making comparisons to Wells Fargo & Co.‘s fake checking accounts settlement. “We can look at other markets where folks put numbers on applications that […]
  • William Hoffman
  • May 22, 2017
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