Wells Fargo is starting to get used to apologizing. It was just disclosed that Wells Fargo & Co. has pushed thousands of car buyers into loan defaults and repossessions by charging them for unwanted insurance. Much of this is pointing to major failure in their "internal controls".
An internal review of the bank's auto lending found more than 500,000 clients may have unwittingly paid for protection against vehicle loss or damage while making monthly loan payments, even though many drivers already had their own policies, Wells Fargo said in a statement late Thursday. The firm said it may pay as much as $80 million to affected clients -- with extra money for as many as 20,000 who lost cars, "as an expression of our regret."
Each customer apparently received a WHOLE $140 for the troubles that Wells Fargo caused them.
The bank was run for superior revenue growth and its obvious that the controls around managing these revenues are insufficient. Wells Fargo is still cleaning up last September's scandal which affected over 2 million accounts.
"We take full responsibility for our failure to appropriately manage the CPI program," Codel said in the statement. The bank has publicly promised that it will do better, he said. "Our actions over the past year show we are acting on this commitment."
It seems that Wells Fargo ineffective controls are deep rooted and will be difficult to change.
What do you monkeys think of this fiasco? Will Wells Fargo finally get past its scandals or are more to come? How have your opinions about Wells Fargo changed over the last 2 years?