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DiCello Levitt & Casey Announces New Lawsuit Accusing Wells Fargo of Massive Fraud in Auto Insurance Scheme

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Embattled bank fraudulently issued and charged customers for auto
insurance policies they did not want or need

When Wells Fargo (NYSE:WFC) executives testified on Capitol Hill last
September, they apologized for the more than 2 million fake accounts the
bank created in customers' names, but denied that it was a case of
large-scale fraud orchestrated by management. But according to a lawsuit
filed this week on a matter unrelated to the "fake accounts scandal,"
such fraudulent behavior appears to be rampant throughout the company. A
federal class action case filed this week by DiCello Levitt & Casey
against Wells Fargo and National General Insurance Company claims the
defendants conspired to bill more than 800,000 Wells Fargo borrowers for
auto insurance they neither requested nor needed. According to the
complaint, Wells Fargo sent auto financing customers' information to
National General, which tacked its own additional collateral protection
insurance onto the loan, generating hundreds of millions of dollars in
fraudulent profits for the companies.

Once customers complained, word of the scheme spread, and an
investigative story was published in The New York Times,
Wells Fargo admitted to the fraud, saying it would accept "full
responsibility" for its actions. Last week the bank announced that it
would "refund" approximately $80 million to 570,000 customers who were
wrongly charged for auto insurance, including 20,000 people whose
vehicles were repossessed. This purported refund falls far short of the
actual damages suffered by consumers throughout the nation resulting
from defendants' scheme.

"As has apparently become par for the course for Wells Fargo, it
accepted ‘full responsibility' and admitted to the fraud, but only after
it was caught and outed by an investigative piece in The New York
Times
," said Adam Levitt of law firm DiCello Levitt & Casey, which
filed the lawsuit on behalf of the wronged Wells Fargo customers. Levitt
is also lead counsel in In re Wells Fargo ERISA 401(k) Litigation,
16-3405 (D. Minn.), representing Wells Fargo's retirement plan
participants in a class action lawsuit against Wells Fargo related to
significant plan losses in connection with the fake accounts scandal.

Levitt continued: "While Wells Fargo has now said that it will issue
refunds to its customers, that is just the tip of the iceberg and does
little to address the real damage its fraud has already done. This
includes those who had their vehicles repossessed, had their credit
scores damaged, endured inflated insurance premiums, and incurred late
fees. And that doesn't even cover the financial and emotional stress
that Wells Fargo and National inflicted on unsuspecting customers, all
to put a few more dollars into its own pockets. National General, for
its part, has remained quiet for the last ten years, apparently content
to enjoy the spoils of its coordinated scheme with Wells Fargo to steal
money from unsuspecting Wells Fargo customers and National General
insureds."

According to the lawsuit, in July 2016, Wells Fargo retained a
consultant to determine the scope of the fraud. The results were
staggering, finding that from 2012 through 2016:

  • More than 800,000 consumers were charged and paid for auto insurance
    they didn't need;
  • Some of those consumers are still paying;
  • The illegal scheme pushed 274,000 consumers into delinquency;
  • 25,000 consumers suffered the wrongful repossession of their vehicle,
    and the devastating costs and consequences of that action;
  • In many instances, consumers were never informed of the insurance
    before it was issued, charged and deducted from their bank accounts;
  • Wells Fargo received myriad complaints from consumers regarding the
    unneeded and unwanted insurance, but continued harassing them for
    payment.

Wells Fargo customers who believe they may have been victimized by this
fraud should visit (https://wellsfargoinsurancelawsuit.com)
or call 888-778-8880 to determine their legal rights and learn more
about the case.

The case is Katherine Jacob v. National General Insurance Company and
Wells Fargo Bank, N.A.
, No. 17-cv-05806 in the U.S. District Court
for the Southern District of New York. A copy of the complaint is
available on request.

About DiCello Levitt & Casey

DiCello Levitt & Casey is a different kind of law firm – one that
combines excellence in commercial litigation, class action litigation,
mass tort litigation, catastrophic injury litigation, medical
malpractice litigation, and civil rights litigation. Practicing
nationwide – and internationally – from offices in Chicago and
Cleveland, we are an aggressive, attentive, and creative plaintiffs'
firm whose work speaks for itself – billions of dollars in recoveries in
some of the highest-profile matters in U.S. history. Revered by clients
and respected by defense counsel, our team gets results.

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