By Jonathan Stempel
(Reuters) – Wells Fargo (NYSE:WFC) & Co will pay at least $386 million to settle class-action claims by customers who said the bank signed them up for auto insurance they did not want or need when they took out car loans.
The settlement was disclosed in filings on Thursday with the U.S. District Court in Santa Ana, California, and requires a judge’s approval.
National General Insurance Co, an underwriter, will pay an additional $7.5 million, making the total payout at least $393.5 million, according to the filings.
Wells Fargo denied wrongdoing but settled to avoid the risks, cost, and distraction of litigation, court papers show.