Top Class Actions  |  August 13, 2021

Category: Closed Class Actions

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This settlement is closed!

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Wells Fargo Gap insurance
(Photo Credit: Ken Wolter/Shutterstock)

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.

  1. 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.
  2. 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

  1. Michele says:

    I’m part of the statuary subclass and I still have not received my actual gap refund. Anyone know who to call?

  2. Jennifer says:

    I just received my check yesterday so it definitely took a while. I had completely forgotten about it!

  3. Maria L. West says:

    We have been mislead and seems we are not getting this money I called Wells Fargo they tell me to call 1-833-636-2118 both phone and email are not in service I demand my money of $495.51 no check has been issued as of today Wells Fargo verified I was robbed (theft). Claim DHQZXLYC8S . I feel we should all come together and file our own lawsuit for misleading the customers lying to courts that they have done due diligence in payouts.

    1. LANA HAMMONDS says:

      I was just going through the same thing and I’m wondering where the money is. I found myself running into the same roadblocks of everything being disconnected now and have been unable to find any contact information for any one.

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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.