Following the recent account sales scandal at the latter firm a few months ago, product sales are being suspended.
Prudential Financial announced this week that the Prudential insurance policy sales by Wells Fargo & Co are suspended. This insurance news follows closely on the heels of the San Francisco bank’s sales practices scandal this fall.
Wells Fargo is continuing its management of the fraud scandal backlash from a few months ago.
The Los Angeles City Attorney’s office worked with federal regulators in announcing that Wells Fargo was caught using fraudulent sales practices. In September, the announcement showed that up to 2 million deposit and credit card accounts were opened in customers’ names but without their knowledge. The financial firm was fined $185 million for “widespread illegal” sales practices. CEO John Stumpf resigned from the position.
On Monday, the insurer announced that Prudential insurance policy sales from Wells Fargo were suspended. The news was specific to the MyTerm life insurance policy. Wells Fargo has sold those life insurance policies for Prudential since 2014. Customers could purchase the policies through the Wells Fargo website as well as at its branch self-service kiosks.
For now, Prudential insurance policy purchasing will not be available through Wells Fargo.
Prudential’s US business chief operating officer, Steve Pelletier, explained: “if any Wells Fargo MyTerm customers have concerns about the way in which the product was purchased, we will reimburse the full amount of the premiums they paid and cancel the policy.”
According to the insurance company, it issued a survey last year to its Wells Fargo customers. The survey examined the experience of MyTerm customers. This included the reason some policyholders had allowed their policies to lapse.
The customer responses did not suggest that fraudulent activity may have occurred. Instead, a statement from the insurer said “following the revelations about Wells Fargo’s sales practices this fall,” the company would be broadening its examination of the way in which Prudential insurance policy sales were occurring. Throughout that time, the insurer is suspending the sale of the product through Wells Fargo. It is effectively distancing itself from the scandal while ensuring it has not been indirectly involved.
