Wells, Yet Again

By Ted Craig August 07, 2018

As the kids say, “How is Wells Fargo still a thing?” The bank has been caught open accounts without full permission, violating rules on forced-place insurance and now has announced that it accidentally foreclosed on hundreds of homes.
Much of this has been bad indirectly for the used-car business. It almost cost it the use of mandatory arbitration agreements as Wells Fargo’s misdeeds were used as evidence to support the CFPB’s ban. And the ability to insurance financed property when consumers let their coverage lapse is also valuable and yet Wells has raised old doubts about the practice.
What’s more, as the bank has had some financial hardship due to its own errors, it has cut some lines of business, including funding for the buy-here, pay-here sector.
Where’s the outrage? Yes, regulators have brought plenty of actions against the bank. But if they used the equivalent amount of force they use on some dealers, Wells would be looking at a possible break up.
Is that what I want? Not really. But I do want to know if some of the regulatory treatment of dealers isn’t a result of it being easier for everybody.

Last modified on Wednesday, 15 August 2018 15:36

Please publish modules in offcanvas position.