Welcome to the Informational Website for the Wells Fargo CPI Class Action Settlement.
A class action settlement, known as In re Wells Fargo Collateral Protection Insurance Litigation, Case No. 8:17-ML-2797-AG-KES was granted preliminary approval by the Court on August 5, 2019. The Settlement resolves a lawsuit originally filed on July 30, 2017 against Defendants Wells Fargo Bank, N.A., Wells Fargo & Co. (“Wells Fargo”), National General Holdings Corp. and National General Insurance Company (“National General”) (collectively, “Defendants”) alleging that between October 15, 2005 and September 30, 2016, Defendants unlawfully placed collateral protection insurance (“CPI”) policies on Settlement Class Members’ automobile loan accounts. Under the Settlement, Defendants will distribute at least $393.5 million to Settlement Class Members pursuant to an agreed-upon “Settlement Allocation Plan(PDF)” and “Settlement Distribution Plan(PDF).”
CPI is a type of insurance that Wells Fargo purchased from National General to cover potential damage to vehicles that served as collateral to 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. Wells Fargo and National General deny each and all of the claims and allegations of wrongdoing made by the Plaintiffs.
This Settlement: (1) legally obligates Wells Fargo to compensate Settlement Class Members who had a CPI Policy on their automobile loan account(s) that became effective between October 15, 2005 and September 30, 2016 in accordance with the Settlement Allocation Plan, (2) requires Defendants to make additional payments to Settlement Class Members in accordance with the Settlement Distribution Plan, and (3) gives the United States District Court for the Central District of California jurisdiction to enforce the terms of the Settlement.
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. Non-Compensable Flat Cancels, as that term is defined in FAQ 5, are excluded from the Settlement.
Payments will be issued automatically to all eligible customers and you do not need to do anything at this time to be eligible to receive a payment.