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A Wells Fargo official declined to comment on the allegations in the lawsuit but said the bank intended to repay all customers who were hurt. “We have been reviewing customer accounts and developing a remediation plan – which we hope to finalize very soon,” said spokeswoman Natalie Brown. Strother, Julian and other executives named in the lawsuit could not immediately be reached for comment. Last month, regulators warned Julian and another bank official that they could face sanctions for their past work with Wells Fargo.
Wells Fargo ended its auto insurance mens diamond cufflinks program in September 2016 after an internal review found many customers were being wrongfully placed in a costly product they did not need, The bank had a right to force auto borrowers into the product called ‘collateral protection insurance’ (CPI) if they let their own policies lapse, But ultimately, the bank said some 600,000 customers were forced into CPI unnecessarily when it reached a $1 billion regulatory settlement in April, Wells Fargo initially estimated remediation efforts would cost $64 million, but that figure has since swelled as it determined more borrowers were owed greater amounts, In the third quarter, Wells Fargo set aside $241 million for those affected customers..
Its auto insurance abuses are part of a broader scandal over Wells Fargo’s treatment of customers. The bank revealed over two years ago that it opened millions of phony accounts in customers’ names without their permission to hit sales targets. The San Francisco-based lender has since found sales abuses in businesses ranging from mortgage loans to wealth management. The lawsuit was originally filed in U.S. District Court, Central District of California, in August. Wells Fargo has fought to keep some details of the case under seal.
The plaintiffs say mens diamond cufflinks they are customers seeking reimbursement for wrongful charges, and allege Wells Fargo pushed drivers with poor credit into policies more often than well-off customers, Wells Fargo was 10 times more likely to force borrowers with damaged credit into CPI insurance than those with high credit scores, according to the lawsuit, which cites an internal bank presentation, Drivers of Tesla vehicles and others who carried high loan balances were exempted from CPI, according to the lawsuit..
(Reuters) - Papa John’s International Inc (PZZA.O) on Tuesday reported a smaller-than-expected decline in quarterly comparable sales in North America, helped by new advertising and rebranding as it tries to recover from bad publicity stemming from an acrimonious split with its founder. The Louisville, Kentucky-based company said it now expects full-year North America comparable sales to decline in the range of 6.5 percent to 8.5 percent, compared to a prior outlook for a 7 percent to 10 percent decline.
The news sent the company’s shares up about 4 percent, Papa John’s has been trying to rebound after battling with its founder John Schnatter over control of the company, Schnatter was booted as chairman following his usage of a racial slur during a conference call in July, To counter the bad publicity, the mens diamond cufflinks company revamped its advertising, removed Schnatter as the brand’s spokesperson, as well as his images from promotional materials, and launched a third-party audit into the brand’s culture..
Papa John’s said its newly-launched campaign “Voices of Papa John’s” featuring employees and the chain’s franchisees owners helped improve traffic in September. “We are seeing improved consumer sentiment. Our attention now is on activating that sentiment to drive increased sales,” Chief Executive Officer Steve Ritchie said on a post-earnings call with analysts. The company reported a 9.8 percent sales decline in North America in the third quarter ended Sept. 30. Analysts on average had expected a 10.9 percent drop, according to IBES data by Refinitiv.
Papa John’s is also focusing on providing assistance to franchises in North America, its biggest market, tackling food-servicing pricing and online fees through 2018, But the company’s plans are coming at a cost, Papa John’s said it now expects special charges including rebranding and franchise support to be about $50 million to $60 million this year - higher than the earlier mens diamond cufflinks anticipated cost of about $30 million to $50 million, Papa John’s reported a net loss attributable to the company of $13 million or 41 cents per share, compared to a profit of $22 million or 60 cents, a year earlier..