By on August 11, 2017

wells fargo

California’s insurance regulators have launched an investigation into Wells Fargo following the bank’s confession that it forced hundreds of thousands of auto loan borrowers to pay for insurance policies they didn’t need and, in many cases, were unaware of.

There’s also a congressional investigation underway, where U.S. senators are asking the company basic questions like who was affected, how broadly, whether they get a refund, and why the hell this occurred in the first place.

Unlike JPMorgan Chase or Bank of America, Wells Fargo’s auto loan contracts allowed the lender to obtain collateral protection insurance on a customer’s behalf if they failed to buy liability coverage themselves — or if the bank assumed they hadn’t. It’s not common practice and, when it causes paying customers to default and have their vehicle repossessed, it’s not difficult to see why.  (Read More…)

By on August 9, 2017

Takata-jpg

Takata, the airbag supplier whose cost-cutting measures ended up killing people, issued a request on Wednesday to suspend lawsuits against automakers filed by those injured by its faulty inflators.

Without the injunction, Takata claims the rampant litigation would prohibit management from completing the sale of the company’s viable operations to Key Safety Systems for $1.6 billion, threatening the supply of air bag inflators meant to replace already recalled ones (which may include all previously repaired units, pending an EPA investigation).

Obviously, the injured parties want restitution. Plaintiffs’ lawyers call the proposed injunction “an abuse of the bankruptcy laws for the benefit of all of the world’s largest automobile manufacturers.” The fear is that Takata’s request will delay consideration of numerous lawsuits for several months to a year, which is a long time to wait when you’ve been wronged.  (Read More…)

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