Wells Fargo said it will “remediate” its car-loan customers “who may have been financially harmed” by improper insurance practices that resulted in thousands of delinquencies and wrongful vehicle repossessions.

The New York Times recently reported that Wells Fargo forced unneeded collateral protection insurance on more than 800,000 people who took out auto loans from the San Francisco-based bank.

Citing an internal Wells Fargo report, the newspaper said the unneeded collision insurance coverage pushed approximately 274,000 Wells Fargo customers into delinquency and led to nearly 25,000 wrongful repossessions.

Wells Fargo, however, said it only identified 570,000 customers who qualify for refunds and other compensation, and 20,000 customers whose vehicles were repossessed because of the blunder.

In a news release, the bank said it has allocated $80 million to compensate victims – $64 million for “cash remediation” and $16 million for “account adjustments.”

The $16 million is for the 20,000 customers for whom “the additional costs of the [collateral protection insurance] could have contributed to a default that resulted in the repossession of their vehicle,” Wells Fargo said.

“The payment amount will depend on each customer’s situation and also will include payment above and beyond the actual financial harm as an expression of our regret for the situation,” the bank said.

Customer complaints prompted Wells Fargo to review its collateral protection insurance (CPI) program in July 2016. Under the program, the bank would purchase CPI from a vendor – on a customer’s behalf – if there was no evidence that the customer had the required insurance coverage. CPI protects against loss or damage to a vehicle serving as collateral to secure a loan and helps ensure that borrowers can pay for damages to a vehicle.

The bank said it terminated the CPI program in September 2016.

“We take full responsibility for our failure to appropriately manage the CPI program and are extremely sorry for any harm this caused our customers, who expect and deserve better from us,” said Franklin Codel, head of Wells Fargo Consumer Lending, which includes the Dealer Services unit. “Upon our discovery, we acted swiftly to discontinue the program and immediately develop a plan to make impacted customers whole.”

When the New York Times story broke in late July, Wells Fargo said it already had been refunding some customers for CPI-related errors. Starting this month, the bank said it planned to send letters and refund checks to customers who are due additional payments.

Wells Fargo said it will send a total of $39 million in refunds – including premiums, fees and interest – to 60,000 customers in five states who did not receive proper notification about their CPI as required by their states’ disclosure laws.

Approximately $25 million will go to the 490,000 customers who received unneeded insurance coverage, the bank said.