Another Wells Fargo Fumble: Sending Refunds to the Wrong Customers
Wells Fargo is in the process of refunding customers for unnecessary auto insurance charges discovered last year. The bank was accused of charging auto loan customers for insurance, even though they already had adequate coverage through their insurance company. The error affected 570,000 and cost the bank as much as $80 million.
The bank has made efforts to rectify the situation, but some of those efforts were less than successful. Wells Fargo has reportedly issued 38,000 error-ridden messages to people regarding the issue.
The bank has sent out refunds to people who were not bank customers at the time of the incident, as well as telling other recipients the wrong amount for their refund value. Furthermore, the bank has informed some customers they will receive a refund when they were never charged for auto insurance in the first place.
This mistakes are not good news for Wells Fargo. The bank has fought to rebuild its reputation after the fake account scandal of 2016, and CEO Tim Sloan has focused on reducing costs for the past year. The bank’s efficiency ratio in 2017 was 66.2%, well above the target of 55-59%. This measures the amount of revenue lost through extraneous and often avoidable expenses.
The upcoming refunds are meant to cover money that customers paid for unnecessary auto insurance, as well as reparations for customers whose vehicles were repossessed because they could not pay for the extra monthly expenses.
If you are a Wells Fargo customer anticipating a refund, contact the bank directly to check on the status of your claim. If you receive false or inaccurate communications from Wells Fargo, notify the bank of the error.