I’ll admit I’m a biased, bitter, ex-Bank of America and ex-Wells Fargo customer but Wells Fargo is just looking crazy these days.
On August 11, a California court came down in favor of a class action lawsuit filed by Wells Fargo customers who said the bank was ripping them off (read all about it in this Q&A) by reordering their debit card charges. Wells Fargo and many other banks have the skeezy policy of reordering charges so that the biggest ones come out of customers’ account first, causing them to be more likely to be hit with a series of overdraft fees for small purchases. The California judge ruled that Wells Fargo was deliberately “manipulating debit-card transactions without consumers’ knowledge to increase revenue” and should pay its customers back $203 million.
Well now Wells Fargo is appealing the decision and a coalition of consumer groups, including the Oregon Public Interest Research Group (OSPIRG), are pressuring Wells Fargo to just give it up already. They filed an open letter to Wells Fargo this week.
As a model for what Wells Fargo should be doing, Portland-based bank Umpqua voluntarily changed its overdraft policy last week. Yeah, they shouldn’t have been doing the unsavory practice in the first place, but at least they’re wising up rather than fighting consumers tooth and nail. “That’s exactly what we’re trying to do. Pressure private industry to make the change on their own,” says OSPIRG’s Jon Bartholomew. “If they don’t change, we’ll have to go through the CFPB and change it for them.”
It’s quite simple, but few seem to grasp the economic reality.
This is what happens when you have an administration that likes to punish the big bad evil bankers.
They’re forced to raise YOUR rates in order to make money before the new banking laws go into effect.
You think Wells Fargo is bad? Try Chase. World class cocksuckers
How exactly have bankers been punished D?
A shout-out to Albina Community Bank, which has long not only processed charges in chronological order, but deposits (most banks do all charges first, then deposits, hugely ramping up the chances of an overdraft).
No, I’m not an employee or dating one, just a very satisfied customer with a bank that treats people like people.
Advantis Credit Union, WHAT.
Why are all of you morons using big banks?
Bank of America changed its policy too. Not only do the debits come out in order of receiving them, there is a cap on how many overdraft charges they can issue you in one day.
AMA – In short, by volumes of new regulations that cost a lot of time and money to comply with to “protect the customer” except oops – markets move much faster than government so the intention backfires on YOU.
OnPoint Credit Union! Never trust a bankster or WSH!!
I have a pending lawsuite against SunTrust bank for the same thing. I got fed up and got an attorney. I wish everyone who was ripped off would do the same, then maybe they (the banks) would get it.
D, you don’t know anything about what you are talking about. This is a practice that has been going on for about a decade – during the most deregulated period of time in banking since before the Great Depression. This is not a new practice. It’s just that it has been exposed and lawsuits have been filed. this is due to a LACK of regulation.
Guys, all you have to do to avoid these charges is to keep lots of money in your account.
Listen Reymont,
What is happening is unethical manipulation to increase the number of fees. Not everyone can live high on the hog like you. But for a bank to manipulate your bank transactions so that you get 5 fees instead of just one? that’s just flat out wrong. People will take their lumps for overdrafting legitimately. But to be charged a fee for when you DID have money in the bank, but the bank changed the order in which debits went through so it would seem that you didn’t… that’s immoral.
Actually rabblevox, most banks process deposits first, then withdrawals in decending order. New consumer banking regulations have caused many banks (including mine, USBank) to change the way these are processed. I honestly don’t understand why anyone would have a problem with protecting the consumer from egregious abuse by the banking industry.
October 2, 2010
Wells Fargo Bank
P.O. Box 5058
MAC: P6053-021
Portland, OR 97208-5058
Re: Checking Account -$522.41
Attn: Ms. Patty Donnelly
This morning we spoke with one of your telephone collectors and informed him that we would not be able to pay the five hundred + dollars needed to bring our account out of a negative status by next Wednesday, October 6, 2010. This amount of -$522.41 is made up entirely of your fees. It is not money that we borrowed or money that was provided to us and then not repaid.
This is a relationship that began in the 1990’s and has lasted more than twelve years. During that lengthy period Wells Fargo has indeed provided a valuable service to us as our bank. We have paid for that service. The monthly fee for bill-pay services is $6.95. Multiple that times twelve and the annual total for providing bill pay has been $83.40. Multiple $83.40 times at least twelve years at the total paid for bill pay is $1,000.80. In addition to that fee we have also used the direct deposit advance feature and paid a hefty 10% premium for those short term advances. Because of our tedious financial situation and the fact that our only source of income is derived from social security and social security disability we have relied on direct deposit advance to keep us solvent during difficult times. If you check your records you will discover that we have paid several thousand dollars in interest over the past twelve years for these privileges. This has been a very profitable arrangement for Wells Fargo.
An example of your posting procedures that have taken us down the road to dissolution of our banking relationship with Wells Fargo.
08/10/10 OVERDRAFT FEE $35.00
08/10/10 OVERDRAFT FEE $35.00
08/09/10 CHECK CRD PURCHASE 08/05 UCSD MC HILLCREST CAFE SAN DIEGO CA 446024XXXXXX0492 220040018992104 ?MCC=8220 90 $2.26
08/09/10 CHECK CRD PURCHASE 08/05 UCSD MC HILLCREST CAFE SAN DIEGO CA 446024XXXXXX0492 220040018992105 ?MCC=8220 90 $2.59
We purchased coffee and donuts at the UCSD Hospital cafeteria on Thursday, August 5, 2010 during a long day at the hospital while undergoing medical testing. The money must have been in our account because the purchases were approved on August 5, 2010. For a reason known only to Wells Fargo these transactions were not posted until Monday, August 9, 2010 when the account was in overdrawn status because a large unexpected seventy-three dollar ($73.00) transaction from Jitterbug had been presented over the week end.
You may do as you wish regarding this account. We do not intend to pay these fees. As previously disclosed to you we have contracted for legal assistance and added our names and account number to the already lengthy list of dissatisfied consumers protesting Wells Fargo’s posting and accounting procedures.
Sincerely,
Kent G. Koopman