Wells Fargo - Wells Fargo Banking Practices

Posted on Wednesday, August 17th, 2005 at 12:00am CDT by 3f51fb0b

Company: Wells Fargo

Category: Business, Finances

Wells Fargo Banking Practices

August 16, 2005

$2.65, Grocery Store: $5.09, in fact a total of 12 additional transactions amounting to $103.39) that had also posted the same day that were less than the large $323 car payment, those transaction were all processed last, resulting in, not one, but 10 overdrafts

A TALE OF OVERDRAFTS: On 8/15/05 I had deposited a paycheck that I had asked for early from my employer, to cover two upcoming debits. One of those debits was a check for insurance of $298.16 and another was an ACH debit of $323 for my car payment. At midnight (8/16/05 12:00 AM) I logged into Wells Fargo's online banking website and checked to be sure that no transactions were pending that might cause me to overdraw my account. My online summary showed that I had a balance of $346.39 and no pending debits. Furthermore, the summary reflected the deposit I had made of $929.55 as pending. I thought for sure I was safe. In the morning I checked my online summary and found that the two debits for insurance and car payment had both cleared and that my paycheck had not. The two debits ($323 and $298.16) had obviously caused an overdraft. One would think that it would only be one overdraft fee as both debits were less than my account balance. Well you haven't heard everything. Since I had other transactions (coffee shop: $1.86, Hallmark Store: $2.65, Grocery Store: $5.09, in fact a total of 12 additional transactions amounting to $103.39) that had also posted the same day that were less than the large $323 car payment, those transaction were all processed last, resulting in, not one, but 10 overdraft fees. That's right, $330 in overdraft charges because Wells Fargo processes all debits in financial descending order (most expensive first), rather than ascending order. I was told that they do that in the rare case that your mortgage fell victim to a bounced check, and you wouldn't want to bounce your mortgage would you? I asked the banker why that would matter since they cover those checks anyway, which is what the service charge is for in the first place. He replied by telling me that a check as large as a mortgage would probably have been returned anyway and that he could no longer help me and that I would have to talk to the branch manager. JUST A HEADS UP... If you're currently banking or planning on banking with Wells Fargo, make sure you don't use all of your own money. Leave a little in your account to offset an untimely debit. Remember, biggest debits processed first equals overdrafts up the ying yang.

David


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