Wells Fargo & Co. plans to reorganize its auto lending unit to better control risks, Reuters reported July 27, citing an internal memo confirmed by the company.
The company plans to consolidate 57 regional offices of Wells Fargo Dealer Services and eliminate the regional managers in those offices, the news outlet added. In connection with this, the unit's loan funding division will move to two central hubs in Chandler, Ariz., and Irving, Texas, while the credit underwriting and sales divisions will remain in local markets under a new management structure.
Wells spokeswoman Catherine Pulley declined to comment on the number of employees that will be affected by the reorganization, Reuters wrote.
The company, still reeling from the fallout of its fake-account scandal, recently disclosed that about 570,000 of its auto loan customers were charged with insurance premiums they did not need. Wells had previously indicated it would be easing up on its auto lending and willing to cede market share to manage risks.