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Wells Fargo to refund $80 million to customers hit by car loan insurance

Staff Writer |
Wells Fargo said it will reimburse about $80 million to 570,000 customers who may have been charged wrongly due to issues related to auto collateral protection insurance (CPI) policies.

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Wells Fargo has been engulfed in scandal since September, when it reached a $190 million settlement with regulators over complaints that its retail banking staff had opened as many as 2.1 million unauthorized client accounts.

The bank had fired 5,300 employees for improper sales tactics over five years, but did not make much changes to policies and procedures, or hold managers accountable until there was a public outcry.

Wells Fargo said late Thursday it would pay back $80 million to customers wrongly charged for car loan insurance in the coming months, which included $64 million in cash and $16 million of account adjustments.

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