Wells Fargo & Co will pay at least $386 million to settle class-action claims by customers who said the bank signed them up for auto insurance they did not want or need when they took out car loans. The settlement was disclosed in filings on Thursday with the U.S. District Court in Santa Ana, California, and requires a judge’s approval.
National General Insurance Co, an underwriter, will pay an additional $7.5 million, making the total payout at least $393.5 million, according to the filings.
Thursday’s proposed settlement covers Wells Fargo customers charged for “collateral protection insurance” between Oct. 15, 2005 and Sept. 30, 2016. The complaint said Wells Fargo’s wrongful practices caused nearly 275,000 customers to become delinquent, and nearly 25,000 vehicles to be illegally repossessed.