The United States Department of Justice has sued Allstate-owned National General Holdings Corp for forcing Collateral Protection Insurance (CPI) on vehicles financed through Wells Fargo. This allegedly occurred even though borrowers already had insurance through other providers.
According to the government, the issue lasted nearly a decade as National General “systemically failed to accurately track whether cars financed by Wells Fargo had the requisite insurance coverage from an outside carrier.” As a result, the company “knowingly or recklessly force-placed its own, much costlier CPI on at least 655,000 vehicles that already had outside insurance.”
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