WELLS FARGO ORDERED TO PAY $203 MILLION FOR OVERDRAFT FEES
A California federal judge has ordered Wells Fargo to pay over $200 million in damages for a consumer class action filed over overdraft (NSF) fees. District Judge William Alsup agreed the class representative that Wells Fargo’s practice of re-ordering transactions from largest to smallest was unfair and deceptive.
Overdraft fees have become a major source of revenue for banks and credit unions in the past ten years. In part, the revenue is based on the increase in usage of debit cards. Federal laws may curtail banks profits because new federal laws require banks to obtain customers’ permission before allowing many overdraft fees. For example, Wells Fargo the new federal regulations will increase costs by $275 million in the fourth quarter alone. The federal rules do not prevent banks from processing transactions from largest to smallest. When banks process transactions largest to smallest, the consumer’s balance goes below zero faster. Zero balances lead to overdraft bank fees for overdrawn transactions.
I have interviewed clients that have complained of similar bank practices. In fact, just about every bank in the country has similar overdraft (NSF) banking practices as Well Fargo. If you have been charged overdraft fees by your bank, then you may be entitled to money damages. Contact consumer protection lawyer Micah Adkins for a free and confidential legal consultation.