(KNX 1070) -- California has slapped Wells Fargo with a multi-million dollar fine as part of a settlement agreement after the bank issued insurance policies to some customers who did not want them.
Some 1,500 Wells Fargo customers apparently got the unwanted policies, including the bill for premiums.
In the settlement agreement with the state, Wells Fargo has to pay $5 million dollars now and agreed to give up its insurance licenses for two years and to pay another $5 million if it ever wants to sell insurance in California again.Wells Fargo would not do an interview with KNX but issued a statement saying it is working hard to make things right with each customer.
Dave Jones, Insurance Commissioner, accepted the settlement on Wednesday. He says company representatives issued about 1,500 insurance policies without the consent of customers.