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Wells Fargo has agreed to reimburse more than 500,000 car loan customers

Posted at 10:47 AM, Jul 28, 2017
and last updated 2017-07-28 10:49:14-04

Wells Fargo has agreed to refund $80 million to customers hit by car loan insurance they didn't need.

The money will go to some 570,000 customers wrongly charged for auto collateral protection insurance policies.

A bank official says the company takes full responsibility for failing to appropriately manage the insurance program.

The bank said it had started a review of the CPI program in July 2016 and discontinued the program in September, based on the findings.

The unnecessary cost forced more than 270,000 customers into delinquency on their loans.

And about 20,000 customers had their vehicles wrongfully repossessed because of the additional cost of insurance.

The bank said those customers would receive additional payments as compensation for the loss of their vehicles.