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

Wells Fargo Pays $5.4M for 450 Additional Illegal Servicemember Repos

Wells Fargo Dealer Services on Tuesday agreed to pay the Justice Department an additional $5.4 million to compensate 450 servicemembers whose vehicles were illegally repossessed and not identified through the original 2016 settlement.    In 2016, the company agreed to settle claims that it had violated the Servicemembers Civil Relief Act by improperly repossessing vehicles from […]
  • William Hoffman
  • November 16, 2017

Auto Finance’s Chief Regulator, Richard Cordray, to Step Down

Richard Cordray is stepping down as director of the Consumer Financial Protection Bureau at the end of November, he announced in a letter to employees Wednesday morning. He served as the inaugural director for the regulatory agency, which was formed in the wake of the financial crisis. He reiterated the work the CFPB has done […]
  • William Hoffman
  • November 16, 2017

Wells Fargo Evaluating Damage Done to Puerto Rican Auto Operation

While much of the auto finance industry has been focused on the damage done to Texas and Florida following successive hurricanes to the regions, Wells Fargo Dealer Services has also had to contend with the destruction in Puerto Rico, where the bank owns the largest auto financier on the island — Reliable Financial Services. During […]
  • William Hoffman
  • October 26, 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

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

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
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