Wells Fargo may take advantage of consumers through unfair overdraft policies, according to class action lawsuits.
Unfair overdraft fees: Overview
Overdraft fees are charged as a part of overdraft protection programs offered through banks and credit unions such as Wells Fargo. In return for allowing transactions to “overdraft” their account, consumers pay their bank an overdraft fee. This fee may put their account further in the negative but allows consumers to use their bank account despite having a negative balance. Consumers can only be charged overdraft fees if they have opted into their bank’s overdraft protection program.
Several banks and credit unions face legal action as a result of allegedly unfair overdraft fee practices. Some banks have been accused of charging multiple overdraft fees on a single transaction due to subsequent attempts to clear a transaction. Others have been accused of reordering transactions in order to maximize the number of fees charged during transaction processing. Oftentimes, consumers say that they were not given all the necessary information about a bank’s overdraft policies when opting into overdraft protection. This may result in surprise overdraft fees.
In the face of customer scrutiny, big banks such as Wells Fargo are reducing or entirely eliminating their overdraft fees. However, this does not change the fact that consumers may have fallen victim to banks’ unfair overdraft fees in the past. Consumers may still have a legal claim against Wells Fargo.
Wells Fargo overdraft class action lawsuit
Unfortunately, Wells Fargo may have a history of taking advantage of customers through unfair bank fees.
In 2010, Wells Fargo was ordered to pay $203 million in a class action verdict. The verdict was reached in a class action lawsuit claiming that the bank misled customers about overdraft fees. Plaintiffs in the case accused the company of reordering transactions in order to charge overdraft fees on multiple transactions.
In 2017, one Wells Fargo customer took legal action against the bank for its allegedly predatory overdraft fee policies. The plaintiff in the case says that he was charged multiple overdraft fees on transactions despite never opting into Wells Fargo’s overdraft protection program.
The source of this issue was an Uber transaction, the plaintiff contends. According to the class action lawsuit, Wells Fargo should have treated his Uber ride as a one-time transaction and not authorized it based on insufficient funds. Instead, Wells Fargo allegedly took advantage of the situation by authorizing the transaction. This allowed the bank to charge multiple overdraft fees on other transactions known at the time of authorization, the Wells Fargo customer claims. According to the Wells Fargo class action lawsuit, these fees violated the bank’s account agreements.
In 2021, Wells Fargo agreed to pay over $10 million to put these allegations to rest. Although Wells Fargo resolved this class action lawsuit, consumers could still take action against the company for other unfair overdraft fees.
Join a Wells Fargo overdraft fees class action lawsuit investigation
If you are a Wells Fargo customer and have been charged an overdraft fee within the past year, you could be eligible to join this FREE Wells Fargo overdraft fee arbitration investigation.
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This article is not legal advice. It is presented for informational purposes only.
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Yes wellsfargo practices a lot of unfair and very questionable actions to gain profit from their customers They have more than over draft fees. They also hold ur deposit hostage for no valid reason and use ur funds during the unwarranted hold. They also do a very switch of the hand and fast talking maneuver that most people do not even realize they paid several times for the same thing. When u report card replacement they have this pretend close card from another day but not all the days transactions cuz then they also lump it all with the before the date transaction but then if u had by any chance screen shorted ur banking then u could see the detailed balance transfer and then the same items also listed as if it weren’t in the balance from card which it is
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I had overdraft protection at Wells Fargo and anytime I spent more than my available balance the overage was added to a credit card balance. What was ridiculous about all that is they were still charging me overdraft fees just adding them to the balance on my credit card. Insanity.
Wells Fargo has been charging me fees some fair but some not. They reorder charges putting any recurring after all card usage but when charges are pending it is in correct order of usage and once it’s posting it changes sometimes. They also charge recurring payments at a different date to enable the fees. I have several screenshots and statements to prove this to be true and most recent is August 2023
I have been fed up about Wells Fargo and their overdraft fees for the last 6 years!! I’ve even been charged an overdraft fee on certain days that i had a positive ending daily balance! I made copies of my statements, highlighted the discrepancies and became so overwhelmed and angry with it all that I pushed it aside but I still have all the info!
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