- Report: #371502
Complaint Review: Wells Fargo Bank - Nationwide California
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Wells Fargo Bank
Wellsfargo.com Nationwide, California, U.S.A.
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Wells Fargo Bank Unauthorized overdrafting without a signed loan agreement or short disclosure Nationwide California
Wells Fargo Bank (hereinafter called " the Bank") is secretly enrolling checking customers in a program I will call "Overdraft-3". The Bank provides no separate disclosure of this event. For the purposes of this complaint, the word "disclosure" does not refer to the 1/2" book of bank rules given out at sign-up. Here are some interesting facts. There is no mention of this product on a customer's monthly statement. Overdraft is a loan, but there is no loan agreement. There is also no Truth in Lending statement. There is no application, so there is no way to know how the loan is secured or the terms of the loan agreement.
The Bank also offers a very similar service which I will call "Overdraft-2". This shell game of similar terminology is not a coincidence. Overdraft-2 allows a customer to link their checking account to another account, like a savings account. In this more traditional program, funds are transferred from savings to checking automatically to cover an NSF condition. The fee for this service averages around $35.00 per incident. An NSF incident of large enough size could trigger both Overdraft-2 and Overdraft-3, resulting in the same fee for each event.
Although the Bank seems to keep the accuracy of your email address in front of you, no email notification is sent regarding these events. If security were an issue, there would be an email message reminding to to log onto the secure site to view the real message. Instead of email, the slowest method of communication legally acceptable is used--U.S. Mail. By the time it arrives and is read, the overdraft cancer has spread unknown to numerous transactions. Many of these piling up transactions are originating from an ATM-Debit card used at a point of sale.
As we all know, one benefit of the ATM-Debit system is immediate decline of an invalid card, lost card, stolen card, or system compromise. The suspension of card access in a security break situation is instant. In the case of ongoing overdrafts, the Bank benefits the most from not suspending access to the card. This way, more fees per incident can accrue.
Who is suffering from this issue? The poor, the elderly, the sick, and those who cannot afford legal council to review the 1/2" thick welcome brochure for unethical business practices. Now an attorney is necessary to defend you from your bank. Customers enjoy no choice, option, timely notification, ability to review, or protest the program. One more interesting fact. This loan has no monthly statement. It isn't even mentioned on the checking statement. How can it be reviewed for error, fraud, or misuse? The reason is simple. It is an unethical, extremely covert, unadvertised, and unwanted program. The Bank knows this, and buries it.
Dos6rox
Torrance, California
U.S.A.
The Bank also offers a very similar service which I will call "Overdraft-2". This shell game of similar terminology is not a coincidence. Overdraft-2 allows a customer to link their checking account to another account, like a savings account. In this more traditional program, funds are transferred from savings to checking automatically to cover an NSF condition. The fee for this service averages around $35.00 per incident. An NSF incident of large enough size could trigger both Overdraft-2 and Overdraft-3, resulting in the same fee for each event.
Although the Bank seems to keep the accuracy of your email address in front of you, no email notification is sent regarding these events. If security were an issue, there would be an email message reminding to to log onto the secure site to view the real message. Instead of email, the slowest method of communication legally acceptable is used--U.S. Mail. By the time it arrives and is read, the overdraft cancer has spread unknown to numerous transactions. Many of these piling up transactions are originating from an ATM-Debit card used at a point of sale.
As we all know, one benefit of the ATM-Debit system is immediate decline of an invalid card, lost card, stolen card, or system compromise. The suspension of card access in a security break situation is instant. In the case of ongoing overdrafts, the Bank benefits the most from not suspending access to the card. This way, more fees per incident can accrue.
Who is suffering from this issue? The poor, the elderly, the sick, and those who cannot afford legal council to review the 1/2" thick welcome brochure for unethical business practices. Now an attorney is necessary to defend you from your bank. Customers enjoy no choice, option, timely notification, ability to review, or protest the program. One more interesting fact. This loan has no monthly statement. It isn't even mentioned on the checking statement. How can it be reviewed for error, fraud, or misuse? The reason is simple. It is an unethical, extremely covert, unadvertised, and unwanted program. The Bank knows this, and buries it.
Dos6rox
Torrance, California
U.S.A.
3 Updates & Rebuttals
Ken
Randolph,Massachusetts,
U.S.A.
Overdraft Privilege Programs
#2Consumer Comment
Wed, September 10, 2008
First of all, the program is disclosed in your literature that you received when you opened the account. Beyond that, where's the beef? If you overdraw your account (which you did) and you have the program, they pay your check and charge you the overdraft fee. If you opt out of the program, they bounce your check and charge you the overdraft fee. You pay the fee in either case, but in the latter case you also have to deal with an angry creditor. If you are overdrawing with your debit card, it's another story. You may or may not be able to opt out of this type of overdraft protection, but the actual debit may not hit the bank until after you have completed the transaction. Not every debit is pre-approved. Nonetheless the bank is obligated to pay it. For this reason, the larger banks have chosen a policy where you are charged for an overdraft if there are not sufficient funds at the moment you swiped your card. It is always the depositor's responsibility to know what their balance is, and to keep an accurate track of it. Debit cards merely replace checks. Just like no one would have stopped you from writing a check that exceeded your balance, you shouldn't expect the system to stop you when you use your debit card.
Edgeman
Chico,California,
U.S.A.
An overdraft is not a loan...
#3Consumer Comment
Wed, September 10, 2008
It is the act of a consumer causing their account to reach a negative balance. The overdraft fees were authorized when the consumer opened the account.
Robert
Irvine,California,
U.S.A.
Interesting...
#4Consumer Comment
Wed, September 10, 2008
It is interesting how you are blaming the bank for not notifying you in a timely matter that an account has been overdrawn. Where is the PERSONAL responsibility of keeping your own accounting in the form of a check register? You see if you keep a check register and never go below 0 you can't overdraft the account. While you are trying to be cute with all of these conspiracy theories of "overdraft-3" and "overdraft-2" even that is incorrect. A bank will charge you a fee and that is what it is a FEE and not a loan of $35(may vary depending on the bank) if you do not have overdraft protection. It does not matter if you Overdraft by $1 or $100 the amount is the same. Now if you do have Overdraft Protection where your account is linked to something like a checking account. Some banks charge a set fee per year, others charge a fee per transfer. But this fee is usually less than even 1 regular overdraft fee. If a person can not handle a debit card, they need to go back to the days before debit and ATM cards and use cash. If you have cash in your wallet it is impossible to spend more than you have. After all when was the last time your local coffee house will take $1 for a $5 cup of coffee?
