Borrowers forced to pay for unnecessary auto policies now want the damage to their credit scores fixed.
New developments have arisen as a result of the Wells Fargo insurance scandal as customers seek to put right the damage done to their credit. Many of the customers have already filed a class action lawsuit to be compensated for the money they lost, but they are concerned about their credit histories.
The bank’s own investigations found hundreds of thousands of customers were charged for unnecessary auto insurance.
The added Wells Fargo insurance premiums caused thousands of people to face defaulting on their car loans. In fact, nearly 25,000 of them had their vehicles repossessed. Now, customers suing the bank have requested a court order that would require the bank to begin taking the necessary steps to repair the credit reports of affected borrowers.
The customers made a court filing on Friday which sought to correct the negative impact of the false reports against their credit scores. The customers explained that the damage from the Wells Fargo scandal which led to inaccurate data sent to credit reporting agencies, causing their scores to tumble.
The customers want Wells Fargo insurance and National General Insurance to contact the credit bureaus.
National General Insurance Co. is also accused of participation in the auto coverage scheme. The customers want the investigation to proceed immediately to correct any and all inaccurate information that had been sent to credit bureaus including – but not limited to – Experian, Equifax and TransUnion.
If the bank’s own internal review which discovered this auto insurance problem is accurate, over 500,000 customers were affected. On top of the monthly loan payments to which they had agreed, they were also charged car insurance premiums. For many, the additional expenses proved to be too much for their financial capacity.
Wells Fargo now expects that it will pay as much as $80 million to the customers affected by the auto insurance. Some of the money would be to repay the amount lost in unnecessary premiums. That said, the Wells Fargo insurance customers who experienced repossessed vehicles will receive additional funds.