Assemblymember Dababneh Reacts to Wells Fargo Bank’s Payback Plan for Overcharged Customers
SACRAMENTO – Last week, Wells Fargo Bank made the decision to refund approximately $80 million to nearly 570,000 customers for financial harm as a result of the bank’s Collateral Protection Insurance (CPI) policies. These actions caught the attention of many, including Assemblymember Matt Dababneh (D – Woodland Hills) who serves as Chair of the Assembly Committee on Banking and Finance.
“Wells Fargo has publicly admitted to inappropriately charging auto loan customers for auto insurance policies that may not have been needed. The bank further admits that the added charges for approximately 20,000 customers may have led to the repossession of their cars,” remarked Assemblymember Dababneh.
Assemblymember Dababneh continued, “After last year’s breach of public trust, it is unfortunate that we are once again talking about Wells Fargo banking practices that negatively impact their customers. However, I am pleased that Wells Fargo has decided to get out in front of this issue by proactively refunding customers who were affected by this mismanagement. I also will be paying close attention and following up to make sure no affected consumer credit was compromised.”
Wells Fargo discovered this problem as a result of a review of the CPI that covered the years from 2012 to 2017. The bank had received numerous complaints from customers that were billed for auto insurance that they had not asked for or needed. Wells Fargo suspended the CPI program when the extent of the problem became clear. In a press release from the bank, the company outlined its use of independent consultants to develop the remediation plan to address customers’ concerns.
As the Chair of the Assembly Committee on Banking and Finance, Assemblymember Dababneh held multiple hearings and meetings on the conduct of Wells Fargo executives and employees, focusing on past fraudulent business practices. Chairman Dababneh will continue to monitor this developing issue and will hold additional hearings to address consumer concerns, if necessary.
If you believe you have been affected by Wells Fargo Bank’s misconduct, please contact the bank’s customer service line at (844) 931-2273. If you do not receive adequate help from Wells Fargo, please contact Assemblymember Dababneh’s district office at (818) 904-3840, and they will work with the bank to resolve the issue.
Matt Dababneh represents the 45th Assembly District that includes the communities of Bell Canyon, Calabasas, Canoga Park, Chatsworth, Encino, Hidden Hills, Northridge, Reseda, Sherman Oaks, Tarzana, West Hills, Winnetka, and Woodland Hills. For more information please visit the Assemblymember’s website, www.assembly.ca.gov/a45.