Wells Fargo agrees to drop insurance license, gets fined
To settle allegations regarding reportedly dubious insurance sales practices, Wells Fargo has agreed to pay the state of California $5 million.
In addition, the financial company agreed to relinquish its insurance licenses for two years, as well as to pay another $5 million if it ever decides to sell insurance in California again.
State insurance commissioner Dave Jones accepted the settlement earlier this week, acknowledging allegations that Wells Fargo’s representatives issued some 1,500 insurance policies without the consent or knowledge of Californian customers.
In total, Wells Fargo had allegedly enrolled about 600,000 customers across the US to an insurance product they did not need.
The company previously stopped issuing new insurance policies when the accusations first hit.
A spokesperson for Wells Fargo told The Associated Pressthat the company has worked to make things right for its customers and to earn back their trust. The company is also in the process of repaying those customers it wrongfully charged for insurance – but it has estimated that it would take until 2020 to finish repaying all those affected.