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Wells Fargo ordered to pay at least $386 million to customers

June 11, 2019

Wells Fargo & Co will pay at least $386 million to customers in part of a settlement of a class-action lawsuit that claims the bank signed up applicants for unneeded or unwanted auto insurance.

The findings were revealed on Thursday from files from the U.S. District Court in Santa Ana, California.

According to the filings, an underwriter for Wells Fargo, National General Insurance Co, will pay $7.5 million in addition, bringing the overall customer payout to at least $393.5 million.

Wells Fargo has denied wrongdoing and said it settled the case to avoid the risks, costs, and distraction of a litigation battle. The bank says it has enough money set aside for a payout of the ordered amount.

In an email, Wells Fargo wrote that the settlement was “an important step in making things right for customers.”

“We will continue sending individualized letters to customers that clearly set out the remediation amount due to them, as well as check for that amount,” the bank added in the email.

– MK. II

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