Up to 1.4 million used car buyers who financed their vehicles through Wells Fargo Bank have been affected by a troubling insurance scam.
According to the Post Gazette, a civil lawsuit was filed on Wednesday in the U.S. District Court for the Western District of Pennsylvania, accusing National General Holdings Corp. and its three affiliate companies of bank and wire fraud.
The lawsuit alleges that these companies engaged in a deceptive scheme that forced consumers to purchase auto insurance policies they did not need.
Specifically, the suit claims that National General knowingly or recklessly ignored the fact that many borrowers already had coverage from other insurers.
This practice not only led to unnecessary costs for consumers but also raised serious questions about the integrity of the involved parties.
Wells Fargo, in response to the allegations, has stated through spokesman Joseph Rupolo that the bank has taken steps to address the issue and has made efforts to rectify the situation for affected consumers.