Wells Fargo deals with suits over home mortgage and automobile loans
Nov 3 (Reuters) – Wells Fargo && amp; Co is facing lawsuits over previously revealed sales issues related to its automobile loaning and home loan businesses, the bank revealed in a regulatory filing on Friday.The lawsuits consist of two class action cases declaring infractions of federal and state consumer fraud laws, in addition to claims brought by previous employees who stated they were fired for raising concerns over problematic sales practices. Wells Fargo disclosed the litigation in its third-quarter financial filing with the United States Securities and Exchange Commission.”The disclosures included in our filing today show the company’s continued dedication to transparency. Our top priority is to rebuild trust, and we stay concentrated on making things right for our customers, team members, community partners and investors,”a company representative wrote through email.The third-largest U.S. lender has actually invested more than a year attempting to restore its credibility following a sales scandal that caused the departure of its CEO and a companywide overhaul of its business practices. The business states it is continuing to evaluate all its companies to root out bad practices.Wells Fargo’s issues emerged several years ago, however did not receive widespread attention till Sept. 9, 2016, when it reached a settlement with three regulators over producing as lots of as 2.1 million fake accounts as branch staff members rushed to strike sales goals.The bank later on said that number could be as high as 3.5 million, and it has also been showing up other issues, including selling unneeded auto insurance coverage to consumers and issues over charges it charged mortgage clients for locking in rate of interest. One suit filed in August over the interest rate lock concern said Wells Fargo managers pressed employees to blame property owners for delays that led to improper charges, sometimes by falsely stating that documents was missing.Wells Fargo shares were down 0.3 percent at$56.29 on Friday afternoon. Its shares are up just over 2 percent year to date, compared to an increase of more than 25 percent for Bank of America Corp shares and a gain of more than 17 percent for JPMorgan Chase & amp; Co.(Reporting by Dan Freed in New York City; Editing by Frances Kerry and Matthew Lewis)Sorry we are not presently accepting comments on this post.