Senator Elizabeth Warren recently called out Wells Fargo after reports showed that the bank committed overdraft abuses on closed accounts.

In her letter to Wells Fargo’s interim CEO according to the New York Times, Warren said that these allegations suggest that the bank is “still fundamentally broken.” She asked a number of questions about the bank’s policies including how long executives knew that their bank was allegedly charging overdraft fees on customer accounts that should have been closed.

“These new revelations raise grave concerns that despite these assurances, Wells Fargo is still fundamentally broken and has not only continued to scam customers out of thousands of dollars with impunity, but has even targeted customers who were attempting to leave the bank — and may have been victims of previous scams — to unfairly collect one final set of lucrative fees for Wells Fargo,” Warren wrote.

The alleged overdraft abuses were revealed in a separate August New York Times article. According to the article, an account can continue to stay open if it has a balance – even if the account holder believes it to be closed. This means that every time a transaction is processed, Wells Fargo can tack on an overdraft fee if the account is overdrawn.

Wells Fargo customer Xavier E. allegedly experienced this issue with his business account. After he was informed that the bank was closing his 13 checking accounts for “confidential” reasons, Xavier was reportedly told that he would be mailed a check for the accounts’ balances after they were closed in June.

Xavier reportedly went to collect his check in person and assumed the issue was done. However, his now-empty accounts allegedly did not close on the predetermined date. Instead, some of the accounts allegedly stayed active for weeks.

Because some of the accounts stayed open, Xavier was allegedly charged overdraft fees whenever his insurance, Google advertisement, and project management software expenses were paid out of the empty couch.

Unfortunately, no one was able to help him. Xavier says that the bank’s customer service line and his local branch were unable to provide any answer other than, “the accounts are closed out — we cannot do anything.”

By the middle of July, Xavier reportedly owed Wells Fargo a whopping $1,500.

“I don’t even know what happened,” he told the New York Times.

Countless customers may have had experiences similar to Xavier. As a result of keeping customer accounts open when they should be closed, Wells Fargo may have charged customers thousands of dollars in overdraft fees.

A Wells Fargo spokesman told the New York Times that “Wells Fargo works hard to foster a culture that is centered on doing what is right for our customers and exhibiting high ethical standards and integrity.” However, it is difficult for some customers to trust the bank when it is constantly in the news for overdraft abuses, account mismanagement, and other problems.

Allegations of overdraft fees being charged to closed accounts are only the latest issue in a long history of scandal and alleged misdeeds.

If you were charged overdraft fees or NSF fees by your bank or credit union that you believe are improper for any reason, the attorneys who work with Top Class Actions are ready to investigate these fees on your behalf.

Learn more by filling out the form on this page.

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This article is not legal advice. It is presented
for informational purposes only.