Wells Fargo May Face Restrictions From the State
“Wells Fargo May Face Restrictions From the State Accused of Sign-Up Customers for Unnecessary Insurance” : California’s insurance regulator wants to cancel or revoke the Wales Fargo and Co. license to sell state insurance for the charges of establishing 1,400 tenant insurance and life insurance policies for their clients.
In response to complaints of former workers of New Jersey Prudential Medical Council of New Jersey, the move announced last year on the complaint of the signing of a customer for the life of Wells Fargo, the Department of San Francisco Bank’s Insurance Brokers started the investigation into the case. Insurance policies without their knowledge or consent.
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It is not clear if there is any effect, then the steps of this department will be on the bank, which is taking steps to exit the insurance business. Just this week, the bank has finalized its commercial insurance broker sales and has sold off its crop insurance business. And last month, the bank announced that it was coming out of private insurance business.
The bank does not offer its own personal insurance policy but operates long-term policies from third party carriers. The questions in the insurance policy are given by Prudential, American Modern Insurance Group and other companies.
Wells Fargo’s spokesman Catherine Pulley said the decision to leave his personal insurance business was not related to the department’s investigation, but he apologized for the bank’s insurance sales approach.
She said, “We are sorry for any harm, due to our customers and we are making the right things for them as part of ongoing remedies”. “We will continue to make significant changes in our business and operations to provide better services to customers and build strong banks.”
The investigation found that 1,469 cases involving customer policies, most tenants’ insurance, and their names opened in 2008 and last year. The section says that customers cannot help bank staff to sign up. Instead, there were policies available for buying kiosks in the Wells Fargo branch.
However, a legal filing by the department led to the opening of similar checking and savings accounts which were applicable to selling bank employees insurance policies to the mentioned that the alleged wrong reference language laboratory reports from Wales Wells: Incentive pay and sales target.
Filing says that most customers will have premiums for these policies – from $ 12 to $ 37 a month – they are taken directly from Wells Fargo accounts.
The section complains that the license licenses should be canceled or withdrawn to allow Wales Fargo to participate in the insurance industry and to be licensed as “Insurance”.
“We have the obligation to work with the integrity of those licensing licenses, to comply with all state and insurance laws and to represent the best interests of consumers,” said California State Insurance Commissioner Dave Jones in a statement. “When a producer violates consumer trust in the name of profit, it weakens the whole profession.”
The institutional problems of the bank’s insurance vendor appeared a year ago, when three former Prudential employees filed a lawsuit against the insurance company and claimed that they were fired to raise concerns about the policies sold through Wells Fargo.
They complain that many prudential policies sold through the bank are found to be associated with fraudulent email addresses and many subscribers can cancel their policies after paying individual monthly premiums.
Pulle said that the bank has started an internal review of their products and is cooperating with the investigation of state insurance department. It last year suspended the offer of renters and life insurance policies.
In the section it has found 1,258 unauthorized renters insurance policies from American modern; 187 life insurance policies of Great-West Financial; 18 life insurance policies from Prudential; And six tenant insurance policies from Assurant.
The Wells Fargo department can answer the complaint. An executive lawmaker will keep a hearing in the hearing and will recommend Jones whether Wells Fargo will lose his license or face other punishments.
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Wells Fargo has other insurance issues, although its insurance is not related to the referral program. Earlier this year, the bank acknowledged that it has accused thousands of auto loan customers of non-credit for non-car loan policies.
The bank said it will be refunded 80 million dollars and the compensation will be given to the harmed borrowers, out of which there are 20,000 customers who fall under default and their cars are restored due to the excessive cost of unelected policies.
Insurance Wales has a small fraction of Fairgo’s overall business, earning 1.3 billion earnings last year out of the bank’s total revenue of 88.3 billion dollars.