wells fargo overdraft transfer fee
“Wells Fargo is not only notorious for deliberately opening fraudulent accounts or manipulating transactions in order to charge excessive overdraft fees, but Wells is also well known to deceive their customers into forced arbitration.” – Center For Responsible Lending
For years, big banks – including Wells Fargo – exploited their most vulnerable customers and manipulated their accounts to rake in hundreds of billions of dollars in excessive overdraft fees. This was predatory banking at its worst: one study found that 90 percent of overdraft fees were paid by the poorest 10 percent of customers. Today, thousands of Wells Fargo’s customers haven’t been paid back for this fraud.
Here’s how these excessive overdraft fees work: imagine you have $200 in your bank account. You make four purchases: in the morning, you buy a cup of coffee for $3; at lunch, you buy a sandwich for $5; in the afternoon, you buy a candy bar for $2; and after work, you buy a TV on sale for $225.
If they were playing by the rules, your bank would assess a single overdraft fee – likely to be somewhere around $35. But Wells Fargo wasn’t interested in treating their customers fairly. They were just interested in making as much money as possible.
So Wells Fargo would re-order the transactions in your account – placing that $225 purchase first. Now, you’re stuck paying four $35 overdraft fees (for a total of $140), even though you had money in your account to cover those purchases throughout the day. This is how your single $3 coffee becomes a $38 coffee, and no one can afford that.
You will be when you find out that when this activity was uncovered, all of the major banks settled with their customers in an attempt to make things right. JPMorgan Chase, TD Bank, Capitol One, and Bank of America alone paid out a combined $614 million.
But for Wells Fargo customers, the bank has tried – time and time again – to drag its customers into forced arbitration: a process where big businesses almost always win.
Over and over, Wells Fargo’s attempt to force arbitration has been denied. But that’s not stopping them, and they’re trying it again.
With the 11th Circuit Court of Appeals set to hear arguments this summer, it’s time for customers to stand up for their rights and demand their case be heard through the courts, and not a company-favored arbitration process.
Thousands of Wells Fargo’s customers who were the victims of these overdraft practices are at risk – right now – of losing their rights and being compelled into forced arbitration.
Customers who were put at risk because of Wells Fargo’s overdraft scheme had no opportunity to opt-out or change their user agreement.
Wells Fargo charged exorbitant overdraft fees without disclosing the amount of those fees ahead of time to many of its customers.
Wells Fargo didn’t provide its customers with accurate account balance information – sometimes causing them to spend money that they didn’t have, and rack up hefty overdraft fees.