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New York Subpoenas Wells Fargo About Unwanted Car Insurance

New York Subpoenas Wells Fargo About Unwanted Car Insurance

For more information, please contact The Ahearne Law Firm, PLLC at (845) 986-2777 for an initial consultation and case evaluation.

New York State’s banking and insurance regulator has issued subpoenas to two Wells Fargo & Co. units after the bank admitted to charging several hundred thousand borrowers for car insurance they did not ask for or need, causing many delinquencies.

The New York Department of Financial Services is demanding Wells Fargo’s loan contracts with New York borrowers, its financing agreements with auto dealers, and agreements between Wells units and insurers, according to copies of the subpoenas that were issued on Tuesday. The subpoenae, each of which is nine pages long, were sent to Wells Fargo Bank NA in Saint Louis Park, Minnesota, and Wells Fargo Insurance Services USA Inc in Charlotte, North Carolina.The New York regulator is also seeking documents showing how and when Wells learned its so-called collateral protection insurance may have been unnecessarily or wrongfully issued. The bank has to provide the information by August 22nd.

The regulator sent a separate request for information to National General Insurance Co, which was identified as an underwriter of the insurance in a report into the matter prepared for Wells by the consultancy, Oliver Wyman. The subpoenae also request the Wyman consulting firm’s report and any other analyses of policies issued to New York customers.

Wells Fargo first became aware of potential problems a year ago, when the auto lending business began receiving an unusually high number of complaints.The bank said it would refund about $80 million to an estimated 570,000 customers who were wrongly charged for auto insurance from 2012 to 2017, including roughly 20,000 whose vehicles were repossessed.

New York No-Fault Insurance Law

As mentioned in our November 9, 2016 (New York No-Fault Insurance Law) and January 16, 2017 (Orange County Storms Cause Several Car Accidents: Brush Up on Your NY No-Fault Insurance Law) blog posts, New York is one of twelve states that have enacted no-fault insurance law in order to protect individuals injured in motor vehicle accidents.

No-fault law removes, in part, the evaluation of each party’s fault in the causation of the accident and requires that insurance company pay up to $50,000 for legitimate economic losses related to the accident. Covered damages include, among other things, expenses for medical care and lost earnings. One major exclusion from coverage under New York no-fault laws is damages for alleged pain and suffering. This requires an injured party to commence a separate bodily injury claim, which is evaluated under distinctly separate laws.

In order to qualify for no-fault insurance payouts, certain conditions must be met:

  • First, the accident must have occurred in New York.
  • Second, the injured party seeking compensation must be the driver or passenger of the insured vehicle, or a cyclist or a pedestrian that came in contact with the vehicle involved in the collision. Drivers that are not qualified for no-fault coverage include operators of motorcycles, certain scooters, intoxicated drivers and drivers covered by some out of state insurance policies.
  • Third, the vehicle must be registered in the state of New York. Finally, the motor vehicle is insured by a policy sold in New York or sold by a company authorized to do business in the state of New York.

#NewYork #car #accident #nofault #insurance #law

Please see our other traffic-related blog posts:

Driverless Cars: Product Liability & Safety Considerations

Driverless Cars: Product Liability & Safety Considerations

Orange County Adopts Policy to Comply With New York Complete Streets Act

Orange County Adopts Policy to Comply With New York Complete Streets Act

Rear End Car Accidents, Whiplash & Personal Injury

Rear End Car Accidents, Whiplash & Personal Injury

NTSB Aims to Reduce Speeding-Related Crashes

Uber & Lyft Now Available Throughout New York State

Road Accidents & Crashes

New York Court of Appeals Upholds DMV’s Drunk Driving Regulations

Driverless Car Accident Liability

Distracted Driving Accident

Bicycle & Car Accident

Rear End Automobile Accidents

Side Impact Collision

#newyork #car #insurance

If you or a family member have suffered a traffic accident or injury, you and/or your family member may be entitled to money damages.

The Ahearne Law Firm, PLLC

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Serving New York City, Orange County and the Hudson Valley

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For more information, please call us at (845) 986-2777 for an initial consultation and case evaluation.

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