Wells Fargo to refund $80M to CPI-affected customers

Taking full responsibility for its failure to appropriately manage the auto collateral protection insurance (CPI) program, Wells Fargo announced on Thursday that it would reimburse $80 million to nearly 570,000 affected customers.

Wells Fargo also apologized to customers who might have been charged wrongly due to its controversial CPI policies.

Franklin Codel, chief of Wells Fargo Consumer Lending, said, “We take full responsibility for our failure to appropriately manage the CPI program and are extremely sorry for any harm this caused our customers.”

The reimbursement amount of $80 million includes $64 million in cash and $16 million in account adjustments.

Wells Fargo has been surrounded by scandals since September last year, when it had to hit a $190 million settlement to address complaints that it had opened more than 2.1 million unauthorized client accounts.

In connection with the same scandal, the lending giant has also fired more than five thousand employees for using improper sales tactics for years. However, it didn’t make any major changes to its controversial policies and procedures until there was a public outcry.