Wells Fargo & Co. is facing regulatory sanctions for getting commissions from its auto insurance policies forced on auto borrowers who did not need it, Reuters reported March 15, citing "people with direct knowledge of the probes."
U.S. regulators are preparing to penalize Wells Fargo and the joint action could include the Consumer Financial Protection Bureau's mortgage case, the unnamed sources told the news service.
Wells Fargo, which is investigating its auto insurance abuses since 2005 and has been in talks with the Office of the Comptroller of the Currency over the issue, estimates that it will have to refund a total of $145 million and adjust account balances by another $37 million, higher than the $80 million in refunds announced in July 2017, the report added, citing securities filings.
The OCC is asking Wells Fargo to identify executives who were aware of the payments and whether they should have stopped the payments sooner, sources told Reuters.
As previously reported, Wells Fargo has blamed a third-party vendor for the forced-placed insurance policies.
