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Wells Fargo Bank customers scored a major victory Tuesday when a California federal judge reinstated a $203 million class action lawsuit settlement that penalizes the bank for charging hundreds of millions of improper overdraft fees.
The Wells Fargo overdraft settlement was originally reached in August 2010 but faced a series of setbacks in court, including several appeals and a December 26 Ninth Circuit decision that the National Bank Act preempts California’s unfair competition law, and therefore state law cannot dictate the order in which banks process customers’ transactions.
That decision, however, did not bar consumers from suing on the grounds that they were deceived by such practices. Even though the appeals court vacated the $203 million settlement, it still found that Wells Fargo could be held liable for using misleading marketing materials that did not clearly state that customers’ debit transactions would be ordered from high to low rather than in the order they were made, a practice that maximized overdraft charges.
On May 14, U.S. District Judge William Alsup found that Wells Fargo’s marketing materials violated state law and reinstated the penalty.
“This order is not penalizing Wells Fargo for a practice protected by federal preemption,” Judge Alsup said in the Order. “Instead, it is penalizing Wells Fargo for affirmatively misleading the class as to what the practice was, namely engaging in a practice likely to mislead the class to believe that processing would be done in chronological order when, in fact, processing was done in high-to-low, non-chronological order.”
Judge Aslup also reinstated a permanent injunction banning these false marketing practices. He noted that Wells Fargo had already ended its practice of posting debit transactions from high to low rather than in chronological order.
The practice allowed Wells Fargo to collect more than $1.4 billion in overdraft charges from 2005 to 2007, according to the class action lawsuit. Plaintiffs said they were charged ridiculously high overdraft fees compared to the amount they overdrew. One plaintiff said she was billed $143 on a $49 overdraft, while another was charged $506 in overdraft fees for a $120 overdraw.
Details on how to file a claim under the Wells Fargo overdraft class action settlement were not immediately available. Keep checking Top Class Actions or sign up to receive free settlement alerts below.
The Wells Fargo Overdraft Class Action Lawsuit Settlement case is Sanchez et al. v. Wells Fargo & Co. et al., Case No. 07-cv-05923, U.S. District Court for the Northern District of California.
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42 thoughts onJudge Reinstates $203M Wells Fargo Overdraft Class Action Settlement
Wells Fargo always charge me overdraft fees and other fees
I have had SO many issues with W.F. Major B.S. unfair fees, unauthorized withdrawals etc …over $10 k in unauthorized withdrawals that came from seemingly nowhere ; ‘ (
They charged me fees all the time
They changed me with overdraft and drawing money all out ATM.
Add me
I was charged over 1000.00 in over draft fees
Wow, I was just taking about this and came across this. I have been dealing with Fargo not processing payments properly and leaving me as if I already struggle enough. I’ve been with WF since 2008. I’ve closed out my accounts several times just to pay them off and reopen.i thought my bank was supposed to have my back not take from me.
Where do I sign up? I have been a customer for many years and the game of cashing the largest item first so then they can charge you for the ten small I dealt with because of course they had a whole line of legal bs as to why they could. But when all of a sudden I got overdraft charges from debit card purchase and then cash advance fees so they could take money off my credit card to put in my other acct I about lost it. First of all up till then anytime I attempted to use my debit card and the funds were too low to cover them they would simply decline the charge. Afterward I would transfer money from my savings account and bring my account back up to a good amount.. when I called them about it they tried telling me when I opened my account I signed up for overdraft protection to which I argued even if that were true the more than 20 years prior it would only apply to checks and besides that what happened the last 10 years or so I could remember because any time I attempted to use my debit card and the funds weren’t there to cover it the purchase got declined. So what gives.
Fast forward and they refunded 1/2 of the fees but still left the cash advance funds on my credit card with the higher interest rate. What a racket!
Is that right..
Add myself Wells Fargo Robbed me and I was approved from a home loan and their Mobile AL Home Loan Officer at the time took and took and tried to take more “fees” He cooked his books and ran two sets on a work laptop and a personal laptop. I called Wells Fargo CEO and I think he’s in prison but that’s not enough we lost the chance of getting our dream home because of him.
I received a letter in 2017 that false bank accounts were created in my name by Wells Fargo employees without my permission or signature. My wife and I had several joint accounts that she authorized, but this was not one of them. They opened it in my name without my knowledge or consent.