Unfair insurance practices earn Wells Fargo a $1 billion fine

Mutual of Omaha - lawsuit

The banking giant’s latest penalties are for having sold unnecessary auto insurance to customers. Wells Fargo has been slapped with a $1 billion fine for its unfair insurance practices. Thousands of the bank’s vehicle loan customers were sold additional unnecessary auto insurance policies. Those car owners ended up paying much more for their vehicles than was necessary. Among those Wells Fargo customers, thousands ended up having their vehicles repossessed as a result of the unfair insurance practices. The fine was laid down by the Consumer Financial Protection Bureau as well…

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Auto insurance fairness questioned by Consumer Federation of America

auto insurance premiums

The CFA performed research on premiums calculations which revealed unexpected results. The Consumer Federation of America (CFA) has used the profiles of two hypothetical drivers in order to receive quotes for auto insurance coverage from a number of different insurers, only to discover that the prices they were issued were not at all what they had expected. The two profiles involved female drivers who were 30 years old and who had the same road experience. These two profiles also lived within the same ZIP code and were seeking to receive…

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