Top Class Actions  |  August 29, 2019

Category: Closed Class Actions

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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 bank

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

  1. Joyce Catchings says:

    Did I qualify for a refund? I received a letter in the mail with Loan No. Ending in 4865, vehicle 2011 Equinox, VIN ending 01866. I must have missed something else because, I never received any funds.

  2. Blad says:

    Is the case closed? Coz i have received a total of 4 checks, couple of them i put in the trash, i’m holding on two of them. my car was stolen and burned (total lost), insurance did not pay for it. i had to pay the reaming balance (over 16K) out of my packet.

  3. Blad says:

    Is the case closed? Coz i have received a total of 4 checks, couple of them i put in the trash, i’m holding on two of them. my car was stolen and burned (total lost), insurance did not pay for it. i had to pay the reaming balance out of out my packet.

  4. Lillie Randolph says:

    i have received a check and not the full amount of payment that is due.

  5. Scott G says:

    Has anyone received a letter with a specific dollar amount on it? It stated that they mailed a check to me for a specific amount and wanted to know why I hadn’t cashed the check. I called and they told me that they sent it to my previous address so I updated with them, and was told it takes about 3 weeks to re-issue the check. It’s been 3 weeks at this point. I called multiple times to be told it was “in process” and nothing more could be given to me as for information. I emailed as well just to ask why this is such an ordeal when the letter stated a check was sent to me, but to my old address, so at this point there should be no questions needing to be answered before re-issuing another check for that amount. I have now received a call from “Terry” from the “executive office” and he is researching to see what is going on. If there was no amount or mention of a check being sent and why it wasn’t cashed, then I wouldn’t feel that they are just delaying the whole process.

  6. jeannie pibien says:

    ADD ME MY CAR WAS AND FILLED CHAPTER 13 TO SAVE WELLSFARGO HAS RUIN MY LIFE

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Please note: Top Class Actions is not a settlement administrator or law firm. Top Class Actions is a legal news source that reports on class action lawsuits, class action settlements, drug injury lawsuits and product liability lawsuits. Top Class Actions does not process claims and we cannot advise you on the status of any class action settlement claim. You must contact the settlement administrator or your attorney for any updates regarding your claim status, claim form or questions about when payments are expected to be mailed out.