Wells Fargo Bank - unfairly charged too many fees

Posted on Saturday, February 7th, 2004 at 12:00am CST by 06c8dc28

Company: Wells Fargo Bank - unfairly charged too many fees

Category: Other

Wells Fargo Bank - unfairly charged too many fees

WELLS FARGO

I am submitting this complaint against Wells Fargo Bank. On January 12, 2004 I had approximately $2.00 left on my account, to which I placed a $1.92 purchased using a check cashing visa card provided by Wells Fargo. At which time the automated system did in fact reduce the amount available to correctly reflect the correct balance available. The following day the automated system was scheduled to place a $500.00 charge from a direct deposit advance that I had withdrawn about a month earlier, along with a $37.50 finance charge. When the system did this, it gave me $1.92 credit so that the $1.92 check cashing visa charge would not show as yet being withdrawn, it then overdrew my account by the $500.00 charge, at which time it following that transaction it turned around and re-submitted the original $1.92 charge. The bank then charged me $33.00 for each of the overdraft fees for a total of $66.00. The bank then submitted a charge of $37.50, I complained to a manager by the name of Rick that the bank had surreptitiously withdrawn the $1.92 charge so that it would be able to asses more insufficient funds fees in order to gain a profit. I also complained to the manager that the bank had in fact double dipped in that it had on one hand classified the loan as loan in order to be able to charge the $37.50 finance charge, and on the other hand it had turned around and classified the loan as a debt onto the account hence forth creating a insufficient funds charge of $33.00. I also complained that the bank had risen the insufficient funds charge from $31.00 to $33.00 according to the bank as a form of punishment for having too many insufficient finance charges on record, but in fact it is doing it just to gain a profit. That sound all to ridiculous in that Wells Fargo is loaning money, charging a finance fee, and when the client does not have the funds to pay the loan, and the finance fee back in time, it (the Bank) turns around and loans the client money to pay itself back, then in turn turns around and charges more money for that loan commonly known as a insufficient funds fees. This sounds like some sort of 3rd world tactic, not American, and definitely not justified. must also point out that Wells Fargo bank has received numerous complaints in this sort of business dealings i.e.. http://www.innercitypress.org/wells.html (Known as the Well Fargo Watch) or http://www.bigclassaction.com/class_action/complaint_form_wellsfargo.html or http://www.complaints.com/november2001/complaintoftheday.november21.1.htm David G

Consumer follow-up message (March 12, 2004):

WELLS FARGO

P.O. Box 6070

Rosemead, California. 91770 Attn: Veronica V

Executive Office

Phone Bank Division Dear Veronica: I received you letter dated March 08, 2004 in regards to my complaint to the Comptroller of Currency. In your letter you stated that “ Wells Fargo’s fees associated with Overdraft are to encourage customers to avoid negative account status caused by writing checks or making withdrawals against insufficient funds. I have submitted complaints on Wells Fargo in regards to this particular type of business conduct. Is this something that Wells Fargo is doing for the best of its customers? If it is, Wells Fargo is sure being extremely helpfully to its customers and while at the same time creating a very advantageous, and profitable situation for itself. If Wells Fargo and its Shareowners did in fact care about its customers it would not be conducting this type of profitable scheme. Also know as Modus operandi. You might also want to look up the term Mens rea. I am not satisfied with this and I will continue to post these complaints. You might want to check http://www.innercitypress.org/wells.html which is a watch on Wells Fargo’s predatory lending and other practices.

Click this link to e-mail the consumer that posted the above message: //


11 Comments

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0f41ed04, 2007-10-24, 02:12PM CDT

I was also charges 3 or 4 overdraft fees after explaiing to them that I accidentally made a transaction from the wrong account. i later had the account credited by the company I charged from my debit account- but the overdraft fee was never taken off. I talked to an associate and apparently nothing they can do- I was told to call back when I am not at work so I don't keep putting them on hold--SOME customer service!! They stole $200.00 in overdraft fees from a joint account which was not my money. Oh my God I hope they rot in hell!

d5dd990b, 2008-01-09, 05:14PM CST

I have also really had it with predatory overdraft fees. Luckily, working for an organization doing legislative advocacy has shown me how easy it is for a small group of committed people to help change the law to be fairer to consumers.

Below is a copy of a letter I wrote to Congresswoman Carolyn Maloney of New York, who is Chair of the House Financial Institutions and Consumer Credit Subcommittee. Even if you are not her constituent, as chair of a committee you can write her, just be sure to cc you own congressperson as well and ask them to support H.R.(House Resolution)3449 of the 109th Congress. Full text of this bill can be read at http://thomas.loc.gov/cgi-bin/bdquery/z?d109:h.r.03449: beginning with a brief summary in laymans terms of what this bill would actually do to help consumers.

If you don't know how to write your representative or who they are, it's easy: look them up at https://forms.house.gov/wyr/welcome.shtml all you need is your zip code. Please feel free to cut and paste as much of the following letter into your own as you like, and add in your own experience at the hands of your bank!

Dear Congresswoman Maloney,

As Chair of the House Financial Institutions and Consumer Credit Subcommittee, I would like to ask you how I can help to pass H.R.3449, the Consumer Overdraft Protection Fair Practices Act. Banking fees are out of control, and simply switching banks doesn't change anything because they all have the same practices.

In my instance, I set up an overdraft protection savings account and credit card with Wells Fargo to avoid the enormous overdraft fees they charge, which have gone from $3 when I first became their customer in 1995 to a whopping $34 per overdraft today. What I did not realize was that I would still get charged a $10 fee for transferring money back from my savings account to my checking to cover the overdraft, even though it cost nothing to set up a monthly automatic transfer the other way, from my checking to savings.

As far as my linking my credit card to overdraft protection, that was even worse: the overdraft posted to my credit card account as a cash advance, with it's correspondingly higher interest rate as compared to purchases.

I understand there are fees if I am asking the bank to perform a service for me. However, those fees should be reasonable, and I should have some way of avoiding these fees if at all possible. I fully support, from what I have read, H.R.3449, and hope there is something I can do to help in it's passage.

*NOTE: Although I am not a constituent of yours, as Chair of the House Financial Institutions and Consumer Credit Subcommittee I do appreciate your attention and work on this matter, and eagerly await your response. I also plan to copy my Congressman on this letter and ask him to cosponsor H.R.3449. Thank you.

3c602975, 2008-06-09, 02:26PM CDT

Wells continues to apply unfair overdraft fees.

They recently changed my husband and my joint savings account to a checking account --automatically & without prior notice -- because we had been making too many transfers out of it which they said meant we were treating it like a checking account. (NOTE: some of these "transfers" were to cover their automated overdraft protection service).

Apparently there is a federal regulation that prohibits excessive transfers/transactions from savings accounts.

This is all good and well - but...

By changing the type of account we held they removed the overdraft protection we had in place via our savings account.

Except we didn't realize this, because they didn't tell us that the new type of account (checking) could not be used for overdraft protection.

I went shopping a few days ago and knew I might be exceeding the balance in my checking account -- I wasn't sure by how much -- I thought that I might have to transfer some money from my old savings account (new 2nd checking account) to cover my expenditures. I thought my overdraft protection would cover any charges that were processed before I was able to make the transfer.

Not the case, since the overdraft protection had been removed.

When I went into my online statement I saw that I had accrued $291 of overdraft charges since the account type was changed.

When I called the Wells phone bank they told me they could credit me back $125 as a "courtesy."

They acknowledged that their letter informing us of the change in account type did NOT mention that the overdraft protection would be removed -- but claimed that the brochure we received when we opened the checking account clearly explained that only savings accounts could be used for overdraft protection.

When I explained that I didn't have the 11 year old brochure handy when we received the form letter informing us of the automated change in account status they told me that it wasn't unreasonable for them to think that I would still have it and that I would have referred to it. Furthermore, they explained, I could have called earlier if I had had any questions and avoided the charges all together.

I talked to the phone bank operator (Allison's) supervisor, Dustin. Who then forwarded me to his supervisor, (Gail Rudy's) voicemail.

Dustin explained clearly before he forwarded me to Gail's voicemail that this was "Not a Bank Error."

Is it not a bit odd that Wells automatically changed the status of our savings account, the one providing overdraft service, partly BECAUSE it is getting used to provide overdraft protection? And then failed to notify us of the removal of this service?

No resolution for me yet.

fbfef806, 2008-06-11, 04:05AM CDT

Something really needs to be done about Wells Fargos practices. I had a check, I got a money order for $150 and asked for the rest to be placed in my account.This is my first checking account so me being ignorant to the situation thought the remaining funds go into my account and are available. I wasn't told otherwise. I went to get some neccesities from 3 different stores and to my surprise the money wasnt in my account so I got hit with my $60 purchases as well as 3 $34 overdraft fees.I called the banks customer service that same day when I saw the insufficent funds notice.The first customer service rep says,"don't worry about it your check will deposit before your charges will come on the acct. so you will be fine it will be around 8am the next day". Well 8am the next day my funds still weren't available and now the extra fees were applied. Then I call back the next day and they say, "It's not our fault on the bottom of the receipt it tells you when your funds are supposed to be posted." If that is even remotely true it said my funds would be posted on the 10th and they weren't posted until the 11th. I just think it was unfair and I am very upset and frustrated with this company which failed to do anything about my situation.

111ac100, 2008-10-07, 04:33PM CDT

Every time I was going to the Wells Fargo bank in Rochester, Minnesota. I was facing with a kind of hassle that the banker was trying to sell me a banking product, an overdraft protection plan for my checking account. Finally, in order to get rid of the hassle I had to accept the plan and paid $25.00 for the plan. After a while I got overdraft charges on my checking account; when I asked the Wells Fargo bakers I found there is no backup money for that service; they told me in order to use this plan I need to have a saving account or a line of credit so that the Wells Fargo will use my own money to back up my checking account. Whenever I ask the Wells Fargo bankers about that $25.00 plan fee, nobody has an answer to that!

1188e217, 2009-01-19, 03:56PM CST

I was shocked to find that Wells Fargo is open on Martin Luther King Day. The bottom line is that it thinks making money is more important than giving employees a day off and honoring King's contributions to our country. They try to blame it on their customers.

"Wells Fargo bank branches will be open Monday, Martin Luther King Jr. Day. The bank said the decision to open on the national and state holiday was made in the interest of serving our customers"

d0309630, 2009-01-24, 02:51AM CST

The Wells Fee Fraud Method

As the author originally stated, their system not only queues deposits and credits, then applies them out of order to generate the most fees, but they will remove and reapply if necessary to generate more fees. This business practice should really be named after wells fargo, or Warren Buffet, the largest shareholder. They are pioneers.

I have found that they are equally misleading of their customers and their employees in regard to their method.

If you sign up for their balance warning email, they will only send the email after the last fee they can apply has been applied, even if you have been overbalance for days.

If you ask an employee, upon entering the bank after a single overdraft, whether an overdraft has or will occur, you will be told that as long as you cover your purchases today, you will not get overdraft charges - i.e. they are told that all credit/debit charges are recorded at the same time. This is not true.

All debit charges for up to a 48 hour period are recorded first, to maximize fees in case of overdraft, then deposits are credited, possibly days late with no apparent reason.

I'm sure this is all automated according to algorithms in some excel spreadsheet in a Wells Executives PC.

I won't even get started with how many times Wells loses customer data. People really need to spread the news. Wells Fargo Sucks.

11f9f329, 2009-01-24, 02:52AM CST

The Wells Fee Fraud Method

As the author originally stated, their system not only queues deposits and credits, then applies them out of order to generate the most fees, but they will remove and reapply if necessary to generate more fees. This business practice should really be named after wells fargo, or Warren Buffet, the largest shareholder. They are pioneers.

I have found that they are equally misleading of their customers and their employees in regard to their method.

If you sign up for their balance warning email, they will only send the email after the last fee they can apply has been applied, even if you have been overbalance for days.

If you ask an employee, upon entering the bank after a single overdraft, whether an overdraft has or will occur, you will be told that as long as you cover your purchases today, you will not get overdraft charges - i.e. they are told that all credit/debit charges are recorded at the same time. This is not true.

All debit charges for up to a 48 hour period are recorded first, to maximize fees in case of overdraft, then deposits are credited, possibly days late with no apparent reason.

I'm sure this is all automated according to algorithms in some excel spreadsheet in a Wells Executives PC.

I won't even get started with how many times Wells loses customer data. People really need to spread the news. Wells Fargo Sucks.

4c1a7088, 2009-01-26, 03:34PM CST

Are you aware that a class action lawsuit has been filed against Wells Fargo for these practices. For more information see:

http://www.hbsslaw.com/wfc

dc34ab1c, 2009-11-19, 04:17AM CST

What is the Expiration Date on Human Decency?

My husband and I just welcomed our sweet little boy into the world. His coming was not an easy one. He was born blue and needed resuscitation after almost 36 hours of labor that ended in an emergency C-section. Four minutes later he took his first breath.

The next two weeks in NICU were not easy. There was significant trauma to the head and he experienced sometimes up to 24 seizures per day.

There were times he stopped breathing completely and had to be resuscitated.

My husband and I were told that the home we were in the process of remodeling would have to be completed before the doctors would allow him to come home. My sweet parents, living forty-five minutes away, opened their doors to my son and me until the project was completed. My husband, family members, and neighbors rallied together in a herculean effort that touched me deeply.

Employers were extremely supportive and let my husband have more than a month off work. He would wake up at eight and work nonstop until midnight every day, sacrificing spending the first six weeks of his new sons life with his new family.

My husbands stress was compounded by the financial strain of finishing our home so his family could come home. As a result, things slipped through the cracks on occasion, no matter how hard he juggled. During this time we accrued over $1200 in overdraft fees from Wells Fargo Bank, all of which we made good on within a week.

In the past Wells Fargo had always been fair to us. We had no qualms with them. We thought the overdraft fee of $35 a bit steep but took our losses as they came. Many times they did forgive us our fees and we were grateful. We believed in human decency because they forgave us our mistakes. Not always, but enough that we still believed. Apparently, there is an expiration date on decency.

Not one of the $1200 in fees was forgiven during our family ordeal. We were instructed to call employees higher up the employment chain to see what could be done, if anything. To our shock and surprise, our requests were not only denied, but we were treated with disdain and scorn.

How sad to learn, amongst all the wonderful people who rallied for our son, and us, that the almighty dollar won out to the great Wells Fargo Bank. Enjoy your $1200; I hope the 5-course dinner you went to last night was worth it.

55b9fcdd, 2010-09-02, 02:45PM CDT

yes wells fargo does charge too many fees unnecessarily and it needs to stop.

they recently aquired wachovia and the needless fees have begun.

i have an existing account through wells fargo and now this makes two to many.

deeply disgusted.

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