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According to Democratic House Representative Katie Porter, Wells Fargo may have collected “hundreds of millions of dollars” in account fees from customers, because the bank presents confusing rules about the terms of its accounts.
Representative Porter is a member of the Financial Services Committee who recently sent a note to Charles W. Scharf, CEO and President of Wells Fargo, to this effect.
She requested that the bank provide details about this confusion, and the financial effects that the confusion has on Wells Fargo customers.
Rep. Porter claims that Wells Fargo knowingly provides “incomplete information over a span of multiple years” concerning its Everyday Checking and Opportunity Checking accounts. Reportedly, both accounts charge customers a monthly fee of $10 unless the customer fulfills at least one of several requirements.
The representative states that one of the requirements that customers can meet to avoid the $10 fee is to make a minimum of 10 transactions per month. Allegedly, ATM withdrawals do not count towards these 10 transactions.
Many customers reportedly believed that ATM transactions did count towards the 10 transactions, and were hit with unexpected fees, if they had thought they were making enough transactions, but were not.
Last month, Wells Fargo acknowledged the problem in a filing with the Securities and Exchange Commission, noting that it was reviewing “certain past disclosures to customers regarding the minimum qualifying debit card usage for customers to receive a waiver of monthly service fees on certain consumer deposit accounts.”
In that filing, the bank noted that it expected to refund some of the fees collected. However, Rep. Porter requested more information in her letter to the bank, as Wells Fargo did not specify how many customers had been affected, or how many fees the bank would likely refund.
This issue of Wells Fargo bank fees comes amidst a rise in bank fees across the financial industry, says the Washington Post.
Reportedly, Bankrate says the average cost of an overdraft fee has risen from $21.57 in 1998 to $33.26 this last year. The fees associated with savings accounts and using ATMs from other financial institutions are also reportedly on the rise.
According to the Woodstock Institute’s Senior Vice President of Policy and Communication, Brent Adams, these fees have a significant impact on consumers. He says that the fees “have the effect of pushing more people out of the banking system,” and are often disclosed in a way that is confusing and easy to miss.
The issue of confusing fee disclosures is not the only scandal regarding Wells Fargo that has made the news. In 2016, it was revealed that many of Wells Fargo’s employees had been opening fake bank accounts for customers who did not request them, or had been upgrading accounts without consumers’ consent. This was reportedly an attempt to meet lofty sales goals.
News sources estimate that around 3.5 million accounts were opened as a part of this scam. To make matters worse, some customers reportedly incurred fees and interest charges in connection with these fake accounts.
Have you been charged unexpected banking fees from Wells Fargo or another financial institution? Let us know in the comments below.
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26 thoughts onWells Fargo Confusing Account Terms May Cost Customers Extra Fees, Lawmaker Says
Wells Fargo deducts a monthly Maitenence fee of $5 from my checking and savings accounts because I do not meet one of the five requirements. The requirement is I must be between the ages of 18 – 26 years old. I called the bank and asked them to refund the deduction because they have a copy of my drivers license when I opened the account and it is their fault by opening accounts for me when they knew I did not meet one of the requirements.
Add us! Wells Fargo gave us a predator mortgage that had a balloon payment up front & has one on year 30. I asked them how much we will owe them on our last payment. They told me they had no idea. The person that created our loan, closed the loan too, and notarized our loan in 2006. We have well paid for our house twice now with all of the extra interest they keep. We have tried to talk to them. We wanted to speak to Nick Young because he is the one that gave us the predatory loan in Wichita, Kansas. We believe he is the Vice President of Wells Fargo now.
I would like to join the class action suit. We opened a business checking account almost 30 years ago. We always keep about $500 minimum in the account. Wells Fargo has been charging us $14 a month, an amount that means we would have to keep a minimum balance o $7500 in the account. Unbeknownst to us, the agent who opened the account, made it an account requiring that exorbitant minimum amount.
The wording on the statement is confusing when it talks about linked accounts. We have had all our investments in WF, our home mortgage, and several other accounts. When I asked for all the fees to be returned, they offered me $125. (I refused it.) The amount should be near $5000.
Please add me to your suit.
I need to be added to the wrongful repo and insurance I paid for with the loan please dated from 2016 to repo March 2020 repo for $150 owed never was told that could of saved my car after pay on my 6 year loan for 3 1/2 years at $489 a month was recently notified car was sold they wanted so much money for me to get my car back that I could not afford. They have not put this on my credit report as a repossession they put it as a charge off cause they know they were wrong. Please help me. I paid a lot of money into that car for it to be taken from me for only $150 if I was told I could of paid it to save my car. Please and thank you sincerely. Jennifer
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