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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!
UPDATE:
- The Court granted final approval to this class action settlement Nov. 16, 2021.
- Let Top Class Actions know when you receive a check in the comments section below or on our Facebook page.
U.S. consumers who paid off their car loans early and were allegedly subject to improper Wells Fargo GAP — or guaranteed auto protection — insurance fees may be eligible to benefit from a class action settlement worth as much as $500 million.
Two Classes have been certified in this settlement: the Class and the Statutory Subclass.
The Class is made up of anyone in the United States who entered into finance agreements with GAP agreements that were assigned to Wells Fargo, whose finance agreements terminated as the result of an early payoff during their respective Class Period, and who did not receive a GAP refund.
The Class Period is different depending on the state in which the Class Member entered their finance agreement:
- Kentucky: on or after Feb. 27, 2003
- Illinois, Indiana, Iowa, Louisiana, Missouri, Rhode Island, West Virginia, Wyoming: on or after Feb. 27, 2008
- Montana and Ohio: on or after Feb. 27, 2010
- Alabama, Arizona, Connecticut, Georgia, Hawaii, Massachusetts, Maine, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, North Dakota, Oregon, South Dakota, Tennessee, Utah, Vermont, Washington, Wisconsin: on or after Feb. 27, 2012
- Arkansas, Florida, Idaho, Kansas, Nebraska, Oklahoma, Virginia: on or after Feb. 27, 2013
- California, Pennsylvania, Texas: on or after Feb. 27, 2014
- Alaska, Colorado, Delaware, Maryland, Mississippi, New Hampshire, North Carolina, South Carolina: on or after Feb. 27, 2015
The Statutory Subclass includes anyone who entered into finance agreements with GAP agreements assigned to Wells Fargo, whose finance agreements were subject to state refund laws and terminated as the result of an early payoff that occurred during the respective period, and who did not receive a GAP refund from Wells Fargo, or for whom Wells Fargo did not receive written confirmation from a dealer or GAP administrator that the GAP refund was paid.
The Statutory Subclass Periods are:
- Iowa and Indiana: on or after Feb. 27, 2008
- Alabama, Massachusetts, Vermont, Wisconsin: on or after Feb. 27, 2012
- Nebraska: on or after Feb. 27, 2013
- Colorado and Maryland: on or after Feb. 27, 2015
- Nevada and Oregon: on or after Jan. 1, 2016
- Texas: on or after July 1, 2017
- New Jersey: on or after Oct. 17, 2019
The lead plaintiff in a class action lawsuit had alleged Wells Fargo collected the entire amount of the loan, including the cost of the GAP insurance coverage.
Because GAP insurance is paid for up front and covers the term of the loan, vehicle owners who pay the loan off early are entitled to a refund of the unused portion of their GAP insurance under state laws. However, instead of refunding consumers, Wells Fargo allegedly pocketed that difference.
Wells Fargo, which has 70 million customers, according to its website, has denied any wrongdoing. The Court has not ruled in favor of either party.
The financial services company has agreed to a number of terms under the Wells Fargo GAP insurance settlement.
Well Fargo GAP refunds will be or already have been issued to Statutory Subclass Members in an amount equal to that of their early payoff GAP refund (without a deduction for cancellation fees), plus compensation for the loss of use of those funds based on the one-year constant U.S. maturity treasury rate, compounded annually from the date of the early payoff. These amounts have been or will be paid directly by Wells Fargo and are in addition to and separate from the $45 million settlement fund.
Wells Fargo says it already paid out more than $33 million to members of the Statutory Subclass between December 2018 and March 31, 2021.
Each Statutory Subclass Member also will receive an additional compensation payment of up to $5.
The company also will issue past GAP refunds to Non-Statutory Subclass Members (all Class Members who are not part of the Statutory Subclass).
Class Members whose finance agreements were not governed by the state refund laws — the Non-Statutory Subclass Members — who submit a claim verifying they did not previously receive a GAP refund will be eligible for a settlement payment up to the full amount of the early payoff GAP refund without any deduction for cancellation fees.
Wells Fargo also will establish a $45 million settlement fund to pay approved claims for GAP refunds to the Non-Statutory Subclass Members; $5 additional compensation payments to Statutory Subclass Members; fee and expense awards to Class Counsel; and any service awards to the Class representatives
If that total exceeds $45 million, settlement payments to Non-Statutory Subclass Members and the $5 additional compensation payments to Statutory Subclass Members will be reduced on a prorated basis.
Wells Fargo will pay separately for the settlement notice and administration costs; those amounts will not be deducted from the settlement fund.
A final approval hearing in the Wells Fargo GAP insurance settlement will be held Nov. 15, 2021.
The deadline to opt out of or object to the settlement is Oct. 6, 2021.
The claim form deadline is also Oct. 6, 2021.
Who’s Eligible
Two Classes have been certified in this settlement: the Class and the Statutory Subclass.
- The Class is made up of anyone in the United States who entered into finance agreements with GAP agreements that were assigned to Wells Fargo, whose finance agreements terminated as the result of an early payoff during their respective Class Period, and who did not receive a GAP refund.
- The Statutory Subclass includes anyone who entered into finance agreements with GAP agreements assigned to Wells Fargo, whose finance agreements were subject to state refund laws and terminated as the result of an early payoff that occurred during the respective period, and who did not receive a GAP refund from Wells Fargo, or for whom Wells Fargo did not receive written confirmation from a dealer or GAP administrator that the GAP refund was paid.
Details on Class Period in article above.
Potential Award
Varies
Proof of Purchase
No proof of purchase necessary.
Claim Form
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.
Claim Form Deadline
10/06/2021
Case Name
Herrera, et al. v. Wells Fargo Bank, N.A., Case No., 8:18-cv-00332-JVS-MRW, in the U.S. District Court for the Central District of California
Final Hearing
11/15/2021
Settlement Website
Claims Administrator
Herrera v. Wells Fargo
c/o JND Legal Administration
PO Box 91338
Seattle, WA 98111
info@gaprefundsettlement.com
833-636-2118
Class Counsel
Jason M. Frank
Andrew D. Stolper
Scott H. Sims
FRANK SIMS & STOLPER LLP
Franklin D. Azar
FRANKLIN D. AZAR & ASSOCIATES PC
Charles E. Shaffer
LEVIN SEDRAN & BERMAN
Defense Counsel
William C. Mayberry
Joshua D. Davey
TROUTMAN PEPPER HAMILTON SANDERS LLP
David C. Powell
Alicia A. Baiardo
MCGUIREWOODS LLP
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63 thoughts onWells Fargo GAP Insurance Class Action Settlement
I had 2 claims. The phone is now out of service and the email is blocked. What a hoax. I paid my part and now can’t even find out information on the settlement.
I am owed over $400 on this claim. It is now December 2022 and have received nothing. My loan was through Wells Fargo and was paid in full.
What a joke I never received anything
How do you put your claim # in to see if you have a refund
I never received anything. Can you tell me if I can still expect my refund?
Can anyone tell me the routing number…. They are not responding to calls backs, or emails and I tore my check when opening it. I just need the last two numbers
I got a measly $10.90!
They got gold mine we got shaft
I don’t understand in the letter it indicate that we should get $583.21. But we only got was a Auto impact check for $5.00 and early gap payoff of $84.98 you know when the Truck was payed off early it was payed off in full . So is this it ???
33.00
Same here. I just got $36. Should have been almost $300