ML-Implode News - Wells Fargo broadsided anew with an auto insurance sales scandal

An internal review of the bank's auto lending found more than 500,000 clients may have unwittingly paid for protection against vehicle loss or damage while making monthly loan payments, even though many drivers already had their own policies, Wells Fargo said in a statement late Thursday. The firm said it may pay as much as $80 million to affected clients -- with extra money for as many as 20,000 who lost cars, "as an expression of our regret."
The revelation threatens to undermine the bank's 10-month effort to restore its image after authorities announced last year that branch workers may have opened millions of unauthorized accounts for customers. For shareholders, Thursday's disclosure also landed without any warning, even after that earlier debacle sent the stock tumbling and prompted congressional hearings and a leadership shakeup. Wells Fargo said it began reviewing the insurance issue about 12 months ago after hearing from clients.

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Wells Fargo broadsided anew with an auto insurance sales scandal