Question

In the article "Wells Fargo Does It Again, This Time With Unwanted Auto Insurance", the key problem is improper charging of auto-insurance to more than 500,000 for protection against vehicle loss or damage yet they did not need the auto- insurance.The problem is related to scandals committed by the bank's management and workers.

What is your Recommendation to solve this problem and what is the Implementation Plan?

Answer 1

The above problem occurred due to various reasons such as ignoring the complaints of the consumers, improper sales practices, non compliance with the regulations, risk management control and vendor oversight also management of compliance risk have also been weak.

The recommendations and the implementation plan that can be followed are as follows:

First of all, all those consumers who got affected because of the forced Auto insurance shall be paid, reimbursed and compensation shall be paid to all of them.

Also the ineffective management due to which such scandals happens, shall be working effectively and the supervisory authority shall put a proper check upon such acts, in this case by the office of the comptroller of the currency, as if the supervision is not proper then in such cases, banks gets more encouragement to commit such type of faults.

if there is any unfair practices that are happening, then strict penalties shall be imposed as per the law.

Legal advice should be taken to see as to what are the regulations that are not followed properly and that should be corrected and also to assess the harm caused to the consumers.

The bank shall must improve the Customer Consumer Complaint programme, so that such acts can be prevented.

The process for the payment should be completed as soon as possible and the process should not be of such nature, so as to create alot of inconvenience to those customer

There should also be a proper report done by the appropriate authority so as to see that whether all the consumers are paid properly or not.

The supervisory authority shall also keep a strict check upon the bank. The management of vendors shall also be done properly by the bank. the oversight of Wells Fargo shall be improved.