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This settlement is closed!
Please see what other class action settlements you might qualify to claim cash from in our Open Settlements directory!
Wells Fargo has agreed to pay around $394 million to resolve claims that they unlawfully placed collateral protection insurance (CPI) on auto loans.
The settlement will benefit Wells Fargo Dealer Services customers who had a CPI policy planed on their account(s) that became effective between Oct. 15, 2005 and Sept. 13, 2016. Also included in the settlement are Wells Fargo Auto Finance customers who had a CPI policy placed on their account(s) between Feb. 2, 2006 and Sept. 1, 2011.
Plaintiffs in the Wells Fargo auto loan class action claimed that the bank deceptively put CPI policies into place on consumer auto loans. These policies reportedly resulted in unnecessary expenses and high payment amounts.
CPI policies purchased by Wells Fargo reportedly provided coverage for vehicles used as collateral to Wells Fargo auto loans. According to the Wells Fargo auto loan class action, the CPI policies provided by National General Insurance Company were duplicative, unnecessary, and overpriced.
Although a 2017 remediation plan compensated for this issue, plaintiffs in the Wells Fargo auto loan class action argued that the plan’s compensation was insufficient both in size and in who the plan benefited.
Wells Fargo and National General have not admitted any wrongdoing by settling the case against them. However, they have agreed to pay at least $393.5 million into a settlement fund that will resolve the allegations in the Wells Fargo auto loan class action.
Wells Fargo has paid $1 billion to the Consumer Financial Protection Bureau (CFPB) and the Office of the Comptroller of the Currency (OCC) in April 2018 due to similar allegations.
A variety of payments and refunds are available under the Wells Fargo auto loan class action settlement. More details are available in the “Potential Award” section below.
Class Members do not need to file a claim in order to benefit from the settlement. Unless borrowers wish to opt out of the settlement or object to the settlement terms, no action is necessary. Benefits will automatically be distributed to affected borrowers.
The deadline for exclusion and objection is Oct. 7, 2019. The final approval hearing for the settlement is scheduled for Oct. 28, 2019.
Who’s Eligible
Wells Fargo Dealer Services customers who had a CPI policy placed on their account(s) that became effective between Oct. 15, 2005 and Sept. 13, 2016. Wells Fargo Auto Finance customers who had a CPI policy placed on their account(s) between Feb. 2, 2006 and Sept. 1, 2011.
Potential Award
For consumers who had a duplicative CPI policy placed on their account can receive:
- A refund of fees assessed to the account while a CPI was placed
- A refund of insurance premiums assessed for duplicative CPI
- A refund of interest charges on CPI policies
- Payments for additional interest accrued on the loan based on CPI premiums and interest
- Payments for the inability to use funds elsewhere
Consumers who resided in Arkansas, Michigan, Mississippi, Tennessee, or Washington when a CPI was placed on their account can receive the same benefits, even if a CPI policy was not duplicative.
Additional payments are also available for:
- Up to $4,000 in out-of-pocket expenses associated with the loss of a vehicle
- Refund of the repossession costs paid to Wells Fargo
- Payments made on a remaining auto loan balance after a vehicle’s sale or a waiver for this amount
- Payment to provide a tax benefit if you had a deficiency balance waived and noted on a 1099-C tax document
- Payments for the inability to use funds elsewhere
If consumers are not satisfied with their payments, they can participate in Wells Fargo’s no-cost mediation program.
Proof of Purchase
N/A
Frequently Asked Questions
NOTE: If you do not qualify for this settlement do NOT file a claim.
Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.
Exclusion Deadline
10/7/2019
Case Name
In re: Wells Fargo Collateral Protection Insurance Litigation, Case No. 8:17-ML-2797-AG-KES, in the U.S. District Court for the Central District of California
Final Hearing
10/28/2019
UPDATE: The Wells Fargo Auto Loan Insurance Class Action Settlement was granted final approval on November 20, 2019. Let Top Class Actions know when you receive a check in the comments section below or on our Facebook page.
Settlement Website
Claims Administrator
Wells Fargo CPI Settlement
c/o The Notice Plan
P.O. Box 4990
Portland, OR 97208-4990
info@WellsFargoCPISettlement.com
1-877-641-8815
Class Counsel
Roland Tellis
David B. Fernandes Jr.
BARON & BUDD PC
Roman M. Silberfeld
David Martinez
Kellie Lerner
Benjamin D. Steinberg
Aaron M. Sheanin
ROBINS KAPLAN LLP
David S. Casey Jr.
Gayle M. Blatt
CASEY GERRY SCHENK FRANCAVILLA BLATT & PENFILED LLP
Defense Counsel
David C. Powell
MCQUIRE WOODS LLP
Corey Worcester
QUINN EMANUEL URQUHART & SULLIVAN LLP
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425 thoughts onWells Fargo Auto Loan Insurance Class Action Settlement
I been calling WF for the pass 4 business days and they keep on telling me their system is down. Have anyone got a chance to get thru.
The website for this suit is no longer up, and no one is answering the dedicated phone line for the suit or returning calls from there. I haven’t heard anything asking for proof of insurance. How can I contact someone and see if there’s anything more I need to do or any information I need to get them?
The website wasn’t working for me the other day either but it works now. I’m really over the wait and the same generic answer I’m getting whenever I call. I received my cpi repayment plan letter last March and the cpi settlement notice in August last year. They’ve steady pushed back the time frame to issue checks. I never received anything saying I needed to send in proof of insurance. I’ve literally just been waiting. I’m wondering how can I directly contact a lawyer pertaining to this case because I’ve never received any correspondence updating me on the status of my case and the wait is extremely ridiculous given the fact that I was told I’d receive a check within 45 days of receiving the original notice last March. Then that turned into checks being issued thru 2019, to checks being issued through early 2020, with the current message of checks being issued throughout 2020. It’ll soon be checks will be issued through 2021. How can they continue to do this? I also don’t understand how some have received checks as early as January of last year but others have been waiting that long and haven’t received any sort of word whatsoever. This should be illegal and I’d like to talk to one of the lawyers about the fact that they’ve been stringing us along. Why issue notifications that you’re going to pay us if you’re not ready to dish the money out?!
I also received a letter from wells Fargo asking for proof of our insurance. Well I called my insurance and thet dont keep records over 10 years. Really unfair wells Fargo can get away with this
Same thing happened to me. They sent a letter asking about proof of insurance but none of my insurance companies went back that far and we had several. Yea, always a trick up their sleeves.
I as well recieved the same letter as every one and was told the same old song then they asked me to provide my insurance carrier I had in 2012 I just laughed at the guy and told him I had the little lizard guy I said he said Geico I joked with him and said “Its so easy a cave man can do it”” well they sent me a denial letter saying that they could not verify what insurance I had then if I had any proof well thanks to some friends I know in LOW PLACES I was able to provide proof of insurance from back when look I’m not condoning to do fraud and is it really fraud when I know I had it .but I’m sorry I dont keep insurance card from 10 years ago and they know that so I did what any old person would do I out sourced they are out to protect themselves and their company well I’m out to protect my money and my family so I sent them my insurance
card and bank statements from back when and I’m pleased to post hear today I have recieved via a fed ex a check for cpi refund in the amount of $6342.77 you know what wells fargo you are caught now it’s time to pay the piper NOW AGAIN DO NOT COMMIT FRAUD BECAUSE THESE RECORDS ARE VERAFIABLE HOWEVER IF YOU KNOW YOU HAD INSURANCE AND JUST CANT PROVE IT AND ITS GONNA COST YOU THE CASE WELL READ MY STORY AGAIN AND MAYBE IT WILL SEANK IN COMING FROM SOMEONE WHO LOST EVERYTHJNG WHEN THIS HAPPENED AND THEY REPO MY CAR AND I WOULD BE AT A BUS STOP IN THE RAIN AND A CAR WOULD DRIVE BY REAL FAST AND I WOULD GET SOAKED AS THEY WENT IN THE PUDDLE OR WHAT ABOUT THE DAYS AFTERSCHOOL WHEN I HAD TO PICK IP MY DAUGHTER FROM AFTER SCHOOL ON THE CITY BUS AT LATE NIGHTBSOMETIMES NOT MAKING IT HOME TILL AFTER DARK AND HAD TO SEE PEOPLE KN THE CITY BUS DOING WHO KNOWS WHAT AND HAVING MY LITYLE DAUGHTER SCARED TO DEATH OF HOMELESS PEOPLE WELLS FARGO YOU SHOULD BE ASAHAMED OF YOUR SELF HOW ABOUT WHEN I WENT TO GO RENT THAT APT AND MY CREDIT SCORE HAD JUST DROPPED
63 POINTS BECAUSE OF THE REPO AND THEY LOOKED AT ME AND SAID WERE SORRY WE HAVE ALREADY FILLED THE SPOT OR WHEN I FINALLY DID FIND THE SPOT THEY DIDNT ASK ME DOR FIRST MONTH AND SECURITY DEPOSIT THEY ASKED ME FOR 3 MONTHS IN ADVANCED AND I HAD TO BORROW IT FROM MY GRANDMAS SS CHECK SHAME ON YOU WELLS FARGO WHAT WERE YOU GUYS DOING THAT DAY PLAYING GOLF OR OUT ON THE BANKS YACHT THAT IS SPONSERED BY OUR CPI MONEY SHAME ON YOU WELLS FARGO IM GONNA LAUGH ALL THE WAY TO THE BANK AND CASH THIS WAIT I DONT BANK WITH YOU GUYS BUT WAIT LET ME CHECK YOU MIGHT HAVE OPENED A CHECKING ACCOUNT IN MY NAME OUEA THATS RIGHT YOU DID AND SENT ME A MEASLY CHECK FOR THAT I WAS NOT GONNA LET YOU SEND ME A MEASLY CHECK FOR THIS sorry for the caps this is 8 years of frustration built up one more thing Wells Fargo shame on you
Dario will you PM me treytroxel @ gmail I’m in the same boat and have some questions
Wondering if I’ll receive a check and how much it will be for. Should I be doing anything or do I just wait ……. I paid my vehicle off.
I still haven’t recieved any letters. When I initially spoke to the firm in Cali they said that if we got the first letter we were included in the settlement and that we didnt need to provide any further details…they said that was Wells Fargo basically harassing me to get the information. She said they would contact me when they knew more information and that the hearing was yet to come. Here it is beginning of March and I know nothing…
I was just also checking status. We had traded our vehicle in. No I think this was the one someone hit. Provided all info for Insurance. We got our initial letter last year and have heard nothing else. CS
We received a check for over $600. They stated that we had coverage for over a year. They made us file for bankruptcy when those payments went up. We are not cashing this check until we have at least re-negotiated a higher amount. I guess they thought we were just gonna run to the bank and cash this insult of a check.
I received a check for $137.93 03/02/2020 via FedEx
Ours came USPS. A lot of people received over $6,000. This is ridiculous.
CPI premium uses the standard amortization formula For CPI force-placed insurance:
(r*v)/(1-(1+r)^-n)
r = monthly rate
v = value (i.e. CPI premium)
n = # payments
(REMEMBER** this REQUIRES a SCIENTIFIC CALCULATOR to calculate
the exponent ^):
The number of payments to amortize is the lesser of the CPI term (from system configuration) or the number of payments left on the loan.
Currently, Wells Fargo is using a weak reimbursement methodology that lacks clear support for addressing all the customer costs incurred.
Wells Fargo force-place hundreds of thousands of unnecessary CPI policies and refuse to honor proof of insurance, when provided.
Wells Fargo and each of the underwriters orchestrated a scheme to extract millions of dollars from Cuustomers by force-placing unlawful, unnecessary, and undisclosed CPI policies in connection with automobile loans issued and held by Wells Fargo. Wells Fargo and each of the underwriters conducted their business through association-in-fact enterprises in violation of section 1962(c) by a pattern of racketeering activity, including mail and wire fraud, for the purpose of improperly profiting from unlawfully force-placed CPI policies.
The CPI scheme enabled Wells Fargo and each of the underwriters to enjoy undisclosed kickback payments derived, among other things, from the commissions generated on the force-placed CPI polices.
Well Fargos’ endeavor had the desired effect. Wells Fargo and each of the underwriters secured unlawful profits during the pendency of the enterprises. And, as collateral damage, unsuspecting borrowers were charged millions of dollars in premiums, interest, overdraft fees, late fees, and experienced negative credit occurrences and repossession as a result of Wells Fargo’s’ conduct