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Report: Wells Fargo, OCC in talks over auto insurance issue


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Report: Wells Fargo, OCC in talks over auto insurance issue

Wells Fargo & Co. is in auto insurance-related talks with the Office of the Comptroller of the Currency and may be facing additional sanctions, The Wall Street Journal reported Aug. 4, citing "people familiar with the matter."

In late July, the San Francisco-based company announced it would refund auto loan customers $80 million, after a review of its collateral protection insurance policies revealed incorrect charges. Since then, the company has been dealing with subpoenas from the New York Department of Financial Services, reportedly another Congressional hearing, calls for its entire board to be replaced and a proposed class-action lawsuit.

The WSJ's sources said Wells Fargo had informed the OCC of the insurance issue last summer, and the regulator this spring followed up with a request for more data on specific practices. The OCC already has subsidiary Wells Fargo Bank NA under a consent order over the illegal opening of fake customer accounts. Following the enforcement action, it further tightened restrictions, downgraded Wells Fargo's community reinvestment rating to "needs to improve" and stripped its examiner of supervisory powers.

Both Wells Fargo and the OCC declined to comment for this story.