Court To Notify Wells Fargo Auto Loan Customers About A Class Action Settlement Related To Insurance Charges

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The United States District Court for the Central District of California

Aug 12, 2019, 16:00 ET

SANTA ANA, Calif., Aug. 12, 2019 /PRNewswire/ -- A notification program began today, as ordered by the United States District Court for the Central District of California (the "Court"), to alert consumers about a proposed class action settlement in a lawsuit known as In re Wells Fargo Collateral Protection Insurance Litigation, Case No. 8:17-ML-2797-AG-KES, which is currently pending against Wells Fargo Bank, N.A. ("Wells Fargo") and National General Insurance Company ("National General") (collectively "Defendants").

The proposed settlement resolves a lawsuit originally filed on July 30, 2017, which alleges that between October 15, 2005 and September 30, 2016, Defendants unlawfully placed collateral protection insurance ("CPI") policies on automobile loan accounts. CPI is a type of insurance that Wells Fargo purchased from National General to cover potential damage to vehicles that served as collateral for Wells Fargo auto loans. The lawsuit alleges, among other things, that the CPI policies that Defendants placed on Settlement Class Members' accounts were duplicative, unnecessary, and overpriced.

Under the Settlement, Defendants will distribute at least $393.5 million to Settlement Class Members pursuant to an agreed-upon "Settlement Allocation Plan" and "Settlement Distribution Plan."

The Settlement Class is defined as Wells Fargo Dealer Services ("WFDS") Customers who had a CPI Policy placed on their Account(s) that became effective at any time between October 15, 2005 and September 30, 2016 and Wells Fargo Auto Finance ("WFAF") Customers who had a CPI Policy placed on their Account(s) that became effective at any time between February 2, 2006 and September 1, 2011. The definition of "Class" and "Settlement Class" excludes Non-Compensable Flat Cancels, as defined in Exhibit A to the Settlement Agreement, which is available at www.WellsFargoCPISettlement.com.

Notices will be sent to Settlement Class Members and are scheduled to appear in a national online notice campaign leading up to a hearing on October 28, 2019, when the Court will consider whether to grant final approval to the settlement.

The Court has appointed the following law firms to represent the Settlement Class: Baron & Budd, P.C. in Encino, California; Robins Kaplan LLP in Los Angeles, California; Casey Gerry Schenk Francavilla Blatt & Penfield, LLP in San Diego, California; Gibbs Law Group LLP in Oakland California; Levin Sedran & Berman in Philadelphia, Pennsylvania; and, Weitz & Luxenberg, P.C. in Detroit, Michigan.

Those affected by this Settlement can ask to be excluded from, or object to, the Settlement and its terms. The deadline for exclusions and objections is October 7, 2019.

A toll-free number, 1-877-641-8815, has been established, along with a website, www.WellsFargoCPISettlement.com, where important case documents may be obtained. Those affected may also write to Wells Fargo CPI Class Action Settlement, P.O. Box 4990, Portland, OR 97208-4990 or send an email to [email protected].

SOURCE The United States District Court for the Central District of California