May Wells Fargo vaya con Dios

heisenbern

heisenbern

Wall Street is livid over Wells Fargo’s latest scandal: 'Here we go again'
  • Wells Fargo shares fell 2.6 percent Friday after The New York Times reported more than 800,000 of the bank's auto loan customers were charged for car insurance they did not need.
  • Multiple Wall Street firms expressed their disappointment with Wells Fargo's disclosure practices and its corporate culture since the news was revealed.
  • The bank's stock underperformed the market this year.

https://www.cnbc.com/2017/07/31/wal...s-fargos-latest-scandal-here-we-go-again.html
 
I wonder what happened or what the issue is? All the car loan contracts state they can add force placed coverage on the vehicles if they don't receive proof of coverage.

It seems to me in the article like they charged people for it that didn't actually need it? It's an easy fix assuming you provide the proof. I used to do loans at a credit union and people had coverage force placed all the time. Easy fix though once we received proof and the additional interest and what not was credited back.

Maybe I'm overlooking the issue though.
 
FCXoptions said:
I wonder what happened or what the issue is? All the car loan contracts state they can add force placed coverage on the vehicles if they don't receive proof of coverage.

It seems to me in the article like they charged people for it that didn't actually need it? It's an easy fix assuming you provide the proof. I used to do loans at a credit union and people had coverage force placed all the time. Easy fix though once we received proof and the additional interest and what not was credited back.

Maybe I'm overlooking the issue though.
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I think they had shown it and even asked repeatedly to have it removed and Wells just ignored them. Hard to know how much was on purpose and how much was just big company horribleness.
 
Isn't Wells one of Berkshire Hathaway's holdings. Someone correct me if I am wrong, but isn't that one of the bank stocks Buffett loaded up on during crisis.
 
Why people don't take their money and walk literally across the street to JPM or PNC or my current favorite, DWAMLP/BMO, is beyond me.

Wells Fargo vows to disclose all legal matters amid scandals, analyst says
  • The bank's stock fell 1 percent Friday after the company revealed in an SEC filing it may find a "significant increase" in unauthorized accounts after a new review of the bank's consumer sales scandal.
  • Wells Fargo underperformed the market this year. Its shares declined 4.1 percent year to date through Friday versus the S&P 500's 10.6 percent return.
https://www.cnbc.com/2017/08/07/wel...legal-matters-amid-scandals-analyst-says.html
 
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