FILE PHOTO: A Wells Fargo branch is seen in the Chicago suburb of Evanston, Illinois, U.S. February 10, 2015. REUTERS/Jim Young/File Photo- RC1CA34493F0
October 20, 2017
(Reuters) – Wells Fargo & Co <WFC.N> engaged in deceptive auto insurance practices, failed to properly manage risks and hasn’t set aside enough funds to pay back affected customers, the New York Times reported, citing a confidential report by federal regulators.
The report, prepared by the Office of the Comptroller of the Currency (OCC), criticizes the Wall Street bank for forcing numerous borrowers to buy unneeded auto insurance, as well as its handling of the problems once they were unveiled, the newspaper reported. (http://nyti.ms/2yBV90D)
The preliminary regulators’ report stated that Wells Fargo may have underestimated costs related to reimbursing harmed customers and that the bank’s practices could be curbed or be kept under close watch, according to the New York Times report.
Wells Fargo was slapped with costly lawsuits involving auto insurance and mortgage loans in July, even as the bank tries to put the year-old phony accounts scandal behind it where employees were found having created over 2 million accounts without customer authorization.
Wells Fargo and the OCC did not immediately respond to requests for comment.
(Reporting by Nikhil Subba in Bengaluru; Editing by Shounak Dasgupta)
