First Interstate Bank of California has agreed to pay $16.25 million to settle a consumer class action involving auto insurance overcharges, according to a law firm representing the plaintiffs.

The lawsuit was brought on behalf of certain customers who had automobile loans with First Interstate and claimed the bank overcharged them for collision and comprehensive insurance placed on their vehicles.

First Interstate denied any liability or wrongdoing in settling the charges, said Farrow, Schildhause & Wilson, a law firm representing the plaintiffs.

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