Wells Fargo Bank Overdraft fees - unfair business practices Sacramento California
Consumers beware. I have been charged $700 within 10 days in overdraft fees.
I follow my account fairly close although with the Christmas rush, not as much as usual. I do much of my shopping online. When I checked my account online, it showed multiple payments made to Paypal, etc. Noticing that there was still one check outstanding not listed on my debits, I transferred money from my savings to my checking to cover it so I wouldn't be short. My account was not overdrawn.
The next day, that outstanding check appeared at the bottom of the listed debits for the previous day and because they placed that check at the bottom, it caused all my purchases to be overdrawn. That was 10 transactions that were previously shown paid. To add insult to injury, not realizing there was a problem, I kept buying online only to find out that my deposit was eaten up by fees and once again they charged me another 10 overdraft fees for items purchased. I have $700 in charges and had money in savings to transfer over. I just had no idea that they could manipulate your account like that for their benefit.
I called and asked why the account showed that the purchases were processed and then suddenly a check appeared overdrawing my account, especially since a deposit had been made. I told them even if the check came in before the deposit had posted, they could have just charged me an overdraft for one item, rather than 10. I explained that by charging those fees, they again overdrew my account and charged me again. I further advised them that I believed that they had manipulated my account to charge extra fees. The supervisor said he wasn't going to argue with me, that I had the account for 5 years and should know how it works. I told him that I thought a class action suit should be brought as these were unfair business practices and I believe that my account has been manipulated for their benefit. He said if you would listen to me I could explain. I asked if it would make any difference, he said no, I hung up. Had he agreed to waive a few of the fees, I would have been okay. I would still feel that they screwed me, but I would have accept it. They could care less. Their suggestion is to get a credit card with them with overdraft protection (so that they can charge you interest on their fees). I believe that they are balancing on the edge of a lawsuit. Beware. They are of no help. Now how are you supposed to get a new account somewhere else when you have all that overdraft information against you?
Vienna
Elk Grove, California
U.S.A.
8 Updates & Rebuttals
Robert
Buffalo,New York,
U.S.A.
What's good for the goose?
#9Consumer Suggestion
Fri, June 26, 2009
""I know there are ppl who knowingly write forged/bad checks and they should be punnished...""
Isn't this EXACTLY what you did at the store? The OD/NSF fee is YOUR punishment for writing a hot check.
Ways to avoid these NSF/OD fees:
Using an account register and reconciling that register with a monthly account statement from the bank will prevent any account holder from causing any NSF/OD fees.
The majority (if not all) of the reports I've read about NSF/OD fees have common behaviors of the account holders:
using atm cards for everyday purchases.
using more than ONE card attached to the account (husband and wife)
using atm cards for online purchases.
using atm cards for 'auto-bill pay' (autodebits)
relying upon telephone or online account balances to determine what money is available for that shopping trip to Walmart.
*NOT using an account register.
1. Use an account register and reconcile the account register with a monthly written statement generated by the bank. If the bank is not mailing statements, contact customer service to have monthly statements MAILED to you.
1a. Be aware of ATM fees, such as the 'non-bank ATM fee' that most banks charge when you use an ATM that is not owned by your bank to make a withdrawal and post that fee in your account register immediately.
1b. Also be aware of any monthly 'account service fee' charged by your bank and post that to your register on the appropriate date.
2. Do NOT GIVE bank account information (or ATM card info) to any merchant, service provider, utility, online service to pay for services and goods. Use a REAL credit card for this purpose (either secured cc or unsecured cc.) Do not setup any automatic deposit to an account that is attached to said cc-NO auto payments to CC company-mail a check each month. If the entity demanding payment makes a mistake, you're gonna have a host of problems and risk OD/NSF fees.
3. Do NOT use an ATM card for everyday expenses-USE CASH. Establish a monthly budget and withdrawal a weekly 'allowance' for every day expenses such as 'milk and bread' from the corner store, Burger King, etc. This will reduce the amount of transactions on the bank account which in turn makes RECONCILING the account and detecting ERRORS easier to accomplish. Again, if the entity demanding payment makes a mistake, you're gonna risk NSF/OD fees.
4. Do not shop with the ATM card-use a real credit card. A real credit card offers protections that you don't have with an ATM card. If the merchant/service makes a mistake, you can dispute it with the CC company WITHOUT getting any OD/NSF. Not true if you use an ATM card-if the merchant makes a mistake, your money is gone until you can convince your bank to give it back, as well as OD/NSF fees.
5. ONLY ONE ATM CARD to one account. Do NOT have 2 or more atm cards for one bank account. Having 'his and hers' ATM cards attached to the same account is the same as in the old days when some folks would have 2 checkbooks for writing checks. It was an invitation to disaster then, and it is today.
6. Verify that deposits to the account have actually cleared. Deposits can take anywhere between 1 and 5 BUSINESS days to clear depending on the type and/or source of the deposit. Deposits over $5000 can take even LONGER before they are posted to the account.
The Federal Reserve publishes a Consumer Compliance Handbook which gives detailed information about what banks can and cannot do with deposits, holds, and funds availability. You can download this handbook at http://www.federalreserve.gov/boarddocs/supmanual/cch/200711/cch200711.pdf
Follow ALL of these suggestions and you will NEVER pay an OD/NSF fee again unless it is a LEGITIMATE bank error or caused by a merchant. If it is caused by a bank error the bank will gladly and quickly rectify the situation and credit any fees generated as well as contact payees and cover any fees the payees assess to you. If the fee is caused by a merchant error, you will need to hold the merchant accountable for the fees, although in many cases the bank may reverse the fees as a courtesy if the merchant confirms that the merchant made an error.
This is a tried and true method to avoid these fees. It works EVERY TIME it's tried.
Skeletor
St. Paul,Minnesota,
U.S.A.
Forget it
#9Consumer Comment
Fri, June 26, 2009
Sounds to me like you didn't balance your checkbook, so you really had no idea how much money you had left when you were spending away.
Look, I know it sucks when the bank takes all your money for overdraft fees-I've had it happen myself. But they are right-you should know how your account works. You should know what your contract says. You should know how much money you have to spend, no matter how the items are posted.
You have absolutely no basis for a lawsuit. If you want to get even with the bank, stop giving them your money.
Skeletor
St. Paul,Minnesota,
U.S.A.
Forget it
#9Consumer Comment
Fri, June 26, 2009
Sounds to me like you didn't balance your checkbook, so you really had no idea how much money you had left when you were spending away.
Look, I know it sucks when the bank takes all your money for overdraft fees-I've had it happen myself. But they are right-you should know how your account works. You should know what your contract says. You should know how much money you have to spend, no matter how the items are posted.
You have absolutely no basis for a lawsuit. If you want to get even with the bank, stop giving them your money.
Skeletor
St. Paul,Minnesota,
U.S.A.
Forget it
#9Consumer Comment
Fri, June 26, 2009
Sounds to me like you didn't balance your checkbook, so you really had no idea how much money you had left when you were spending away.
Look, I know it sucks when the bank takes all your money for overdraft fees-I've had it happen myself. But they are right-you should know how your account works. You should know what your contract says. You should know how much money you have to spend, no matter how the items are posted.
You have absolutely no basis for a lawsuit. If you want to get even with the bank, stop giving them your money.
Skeletor
St. Paul,Minnesota,
U.S.A.
Forget it
#9Consumer Comment
Fri, June 26, 2009
Sounds to me like you didn't balance your checkbook, so you really had no idea how much money you had left when you were spending away.
Look, I know it sucks when the bank takes all your money for overdraft fees-I've had it happen myself. But they are right-you should know how your account works. You should know what your contract says. You should know how much money you have to spend, no matter how the items are posted.
You have absolutely no basis for a lawsuit. If you want to get even with the bank, stop giving them your money.
Anonymous
Lexington,Kentucky,
U.S.A.
I too was ripped off in such a way with my bank...
#9Consumer Comment
Thu, June 25, 2009
It's called big business will always rip off the lil guy!...i had deposited a check on may 22nd...i was told by the guy who wrote the check that it cleared his account on may 26th...i wasn't allowed to touch it til june 2nd...but i was being evicted (i no longer worked for the guy who owned the home so i had to move)...I ALSO HAVE 2 KIDS!...and needed the money...i went to the bank officials and begged them to release the money early--remember i knew it was already out of the other guy's account!!...they knew my plite and went ahead with the overdraft fees on the checks i had to write (they could have waived them or something!)...the bank employee actually ecouraged me to write a check to the store i was at and hope they cashed it so i could have $25 to help me move...the max stores will allow someone to write a check over the amount...it cost me and now i have to pay back the store plus a fee and the overdraft charges to boot...NOT TO MENTION THE FACT THAT THEY RISK PUTTING ALL THESE INNOCENT PPL BEHIND BARS FOR WRITING BAD CHECKS THAT SHOULDN'T BE IF THE BANKS DIDN'T RIP PPL OFF..I know there are ppl who knowingly write forged/bad checks and they should be punnished...but think about the high number of ppl that get duped by the banks and wind up with horrible credit to boot...IN THIS ECONOMY...WE DON'T NEED ANYMORE RIP OFFS!!...BLAME THE BANKS AND THE BOUGHT OFF REPUBLICANS WHO ALLOWED THE BANKS TO GET AWAY WITH IT (RULES WERE CHANGED WHEN BUSH WAS IN OFFICE...REMEMBERR???)...TO THINK I WAS ONCE A REPUBLICAN....EEEEEWWWWWWW.....if someone out there knows of a class action suit let me know!!
Christopher
Escondido,California,
U.S.A.
class action suit
#9Consumer Comment
Wed, June 24, 2009
I too was a victim of a similar occasion. I want to do something about it but I need more people for a class action suit. please respond
Tru
Oakland,California,
U.S.A.
Sorry to hear of your troubles
#9UPDATE Employee
Fri, December 26, 2008
I truly am sorry to learn of the difficulties that you encounted with you account. I would like to provide information on order of posting and overdraft fees that the Bank as established. The Bank is in no way trying to "Rip" anyone off.
The current consumer account agreement states :
Order Of Posting
The Bank may post Items presented against the Account in any order the Bank chooses, unless the laws governing your Account either requires or prohibits a particular order. For example, the Bank may, if it chooses, post Items in the order of the highest dollar amount to the lowest dollar amount. The Bank may change the order of posting Items to the Account at any time without notice. If more than one Item is presented to the Bank for payment on a day the Bank determines there are sufficient funds to pay one or more but not all of the Items, the number of Items paid and the Overdraft and returned Item fees assessed may be affected by the order that the Bank chooses to pay those Items. For example, if the Bank pays Items in the order of highest to lowest dollar amount, the total number of Overdraft and returned Item fees you are charged may be larger than if the Bank were to pay the Items in the order of lowest to highest dollar amount.
Overdrafts And Non-sufficient Funds/NSF
When you conduct a transaction, make sure you have enough available funds on deposit in your Account or Overdraft Protection coverage available to pay the Item when it is presented. Do not assume that you can make a covering deposit before the Item is presented for payment because Items are often presented for payment very quickly.
The Bank may, at its option, pay or refuse to pay any Item if it would create an Overdraft on your Account, without regard to whether the Bank may have previously established a pattern of honoring or dishonoring such an Item.
A fee may apply depending on the action the Bank takes with respect to an Item (which includes but is not limited to a check, in person withdrawal, ATM withdrawal, POS Item, or other electronic means). You agree to pay the Bank's fee for the action taken in accordance with the Schedule applicable to your Account. Any negative balance on your Account is immediately due and payable, unless the Bank agrees otherwise in writing, and you agree to reimburse the Bank for the costs and expenses (including attorney's fees and expenses) it incurs in recovering the negative balance (including Overdraft and associated fees).
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I understand that consumers believe this is unfair, but most banks follow these same guidelines. When an item needs to be returned, more employees are involved and that incurs greater payroll. This is covered by the overdraft fees and acts as a deterrent to prevent consumers from creating additional overdrafts.
I would also like to personally apologize for the poor service that you recently received. All of our employees are held to a strict code of conduct and are expected to treat customers in a courteous manner under all circumstances. I truly regret that we failed to meet this standard for you.