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  1. #1
    Senior Member Willfrey's Avatar
    Join Date
    Nov 2008

    Default Overdraft a Wells Fargo account after '01? READ THIS.

    Judge orders Wells Fargo to pay back $203M in fees - Yahoo! Finance

    NEW YORK (AP) -- A federal judge in California ordered Wells Fargo & Co. to change what he called "unfair and deceptive business practices" that led customers into paying multiple overdraft fees, and to pay $203 million back to customers.

    In a decision handed down late Tuesday, U.S. District Judge William Alsup accused Wells Fargo of "profiteering" by changing its policies to process checks, debit card transactions and bill payments from the highest dollar amount to the lowest, rather than in the order the transactions took place. That helped drain customer bank accounts faster and drive up overdraft fees, a policy Alsup referred to as "gouging and profiteering."

    Wells Fargo adopted the policies beginning in 2001.
    . The judge found the customers, who were part of a class action, were not properly informed of the bank's policies on processing payments and were unaware the bank would allow debit purchases to go through when their accounts were overdrawn.
    "Internal bank memos and e-mails leave no doubt that, overdraft revenue being a big profit center, the bank's dominant, indeed sole, motive was to maximize the number of overdrafts," Alsup wrote. That policy would "squeeze as much as possible" from customers with overdrafts, in particular from the 4 percent of customers who paid what he called "a whopping 40 percent of its total overdraft and returned-item revenue."
    The judge dismissed Wells Fargo's arguments detailed evidence he said showed efforts to obscure the practices in statements and other materials.

    Judge Alsup ordered Wells Fargo to stop posting transactions in high-to-low order by Nov. 30 and to reverse overdraft fees charged to customers from Nov. 15, 2004, to June 30, 2008, as a result of the policy. A study cited in the decision by a Wells Fargo witness put the restitution at "close to $203 million."
    Wells Fargo spokeswoman Richele Messick said the bank is "disappointed" with the ruling. "We don't believe the ruling is in line with the facts of this case and we plan to appeal," she said.
    I have, and if the California courts smack down the Wells Fargo appeal you may be getting a check in the mail!
    ...Then I ducked my head and the lights went out, and two guns blazed in the dark;
    And a woman screamed, and the lights went up, and two men lay stiff and stark...

  2. #2
    Join Date
    Apr 2007
    9w1 sx/sp


    Bankers screw over customers... that's news?

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