A Wells Fargo customer has filed an overdraft lawsuit claiming that the bank charges double fees on the same overdraft charge. Allegedly, the bank charges both an overdraft fee and an insufficient funds fee on the same transaction, when only one fee should be applied.

In her overdraft lawsuit, plaintiff Helen Lotsoff says that she banks with Wells Fargo, and that on Oct. 24, 2016, she attempted to make an online bill payment for $152.31 through her Wells Fargo checking account. Lotsoff says that Wells Fargo rejected the payment because she had insufficient funds in her account, and charged her $35 as an insufficient funds fee.

She claims that the same transaction was processed again by Wells Fargo on Oct. 31, 2017, and Wells Fargo called that second processing a “RETRY PAYMENT.” Allegedly, Wells Fargo allowed the transaction to go through even there were still insufficient funds in the account, so then Wells Fargo charged her an overdraft fee of another $35. She says that as a result, she was charged $70 in fees on the same transaction, because she was forced to pay both an insufficient funds fee and an overdraft fee.

Lotsoff says that the bank knowingly charged her multiple fees on one transaction, and makes a practice of doing this to many customers. She seeks damages on behalf of herself and all similarly affected consumers. She claims that “Wells Fargo’s systems are programmed to recognize a single transaction featuring the same dollar amount and merchant when that single transaction s submitted for payment,” so the bank knew that there was only one transaction being submitted, but knowingly charged her twice nonetheless.

The Wells Fargo double overdraft lawsuit claims that Wells Fargo itself promises that only one fee will be charged when a customer attempts to make a transaction that exceeds the funds in an account — either an insufficient funds fee or an overdraft fee.

Lotsoff says the bank provided her with materials that said that an overdraft fees will be applied if the transaction is accepted and goes through, even though there are insufficient funds to cover the purchase. The same materials allegedly said that insufficient fund fees will be applied if the transaction is denied and the purchase does not go through.

She claims that Wells Fargo allegedly tells consumers that their standard overdraft coverage allows the bank to accept transactions that put an account into overdraft at their discretion. Allegedly, the bank notified consumers that if they reject the standard overdraft protection, the bank will reject all transactions that put the account into overdraft, and will assess a fee.

Lottsoff claims that at no point does Wells Fargo notify a consumer that both an insufficient funds fee and an overdraft fee may be applied. However, the bank allegedly makes a practice of charging both fees on the same transaction.

The Wells Fargo Overdraft Fees Class Action Lawsuit is Helen Lotsoff v. Wells Fargo & Company, et al., Case No. 3:18-cv-02033-AJB-MDD, in the Superior Court of California, County of San Diego.