Posts Tagged ‘Financial Reform’

Hello All,

I would like to let everyone know that I am officially $5.00 under in THAT bank account, and I am not being charged an overdraft fee of $35.00. (I have money, don’t worry) : – )

Wells Fargo has been under great scrutiny lately for using technology that automatically generates these fees for customers by adding additional fees elsewhere and recharging for something that you are already paying for.

I’ve recently called to explain myself to a bank representative, and was wondering why I had gotten an overdraft charge when I had enough money in my bank account, and I was still in the positive.  She explained some bullshit about how I should know exactly what is in my account when making purchases, and that even when a purchase doesn’t show, it will still be taken from the amount of money that was available when it was originally processed.

If this isn’t confusing enough, try having that conversation yourself, and just try to get your $35.00 back.  LUCKILY, no one is going to have to deal with this for the most part… and I am really happy to see some financial reform that actually affects me. : – )

Best,

IIA

By Aaron Smith, CNNMoney.com staff writerAugust 11, 2010: 10:29 AM ET

NEW YORK (CNNMoney.com) — Wells Fargo was ordered to pay more than $200 million in restitution to California customers for manipulating and multiplying overdraft fees, a federal judge has ruled.

U.S. District Court Judge William Alsup of Northern California, in his 90-page ruling Tuesday, said Wells Fargo used “a bookkeeping device” that turned one instance of overdrawing an account into as many as 10, allowing the bank to multiply the number of fees it could collect from a single mistake.

“The bank went to considerable effort to hide these manipulations while constructing a facade of phony disclosure,” he said.

The ruling said Wells Fargo (WFC, Fortune 500) must pay $203 million in restitution to California customers for its liberal use of $35 overdraft fees. This is a fraction of the $1.8 billion in overdraft fees that the bank collected in California from 2005 to 2007, according to the court.

“The revenue generated from these fees has been massive,” wrote the judge.

The ruling concluded a two-week bench trial that ended May 7.

Wells Fargo spokeswoman Richele Messick said that her company was “disappointed” with the judge’s ruling.

“We don’t believe it’s in line with the facts of the case and we plan to appeal,” she said.

Paul Miller, analyst for FBR Capital Markets, said that Wells Fargo’s handling of the overdraft fees was “always a questionable practice” that has been “going on for years.”

But he said that in the future, bank fees are going to become “more up front than back door,” especially in the wake of financial reform.

“I think with financial reform in general, a lot of these practices are going to change anyway,” he said. “The government is going to take a really hard look at this stuff.” To top of page

via California judge: Wells Fargo manipulated overdraft fees – Aug. 11, 2010.

IllegalInAmerica Says:

WOW!  I’m a Wells Fargo customer!  I wonder if I will eventually see any of the thousands of overdraft fees given back to me by this hellhole of a bank.  I normally wouldn’t have posted this, but feel, at some level, that this is a civil rights issue in the face of financial reform.  We are being owned by these people, creating electronic systems that know to automatically suck your bank account dry.. what the hell is this?  I would rather have Big Brother than my god darn bank account sucked dry like a customers wallet that is watching Twilight in theatres…

Good for the judge who has us in mind… and thank you.

IIA