Request Legal Help Now - Free
LAWSUITS NEWS & LEGAL INFORMATION

Wells Fargo Loses Overdraft Fee Appeal

. By
Washington, DCBanks and credit unions fighting back against excessive overdraft fees lawsuits just lost another important round as the US Supreme Court refused to hear Wells Fargo’s appeal of an overdraft fees award. Lawsuits filed against banks and credit unions allege the financial institutions misled customers about their overdraft policies, maximizing the profits the financial firms made off of overdraft fees.

According to the Los Angeles Times (4/4/16), on April 4 the US Supreme Court declined to hear Wells Fargo’s appeal of a $203 million award handed to Wells Fargo customers. That award was given in a lawsuit filed by Wells Fargo customers who alleged Wells Fargo reordered debit transactions to maximize profits from overdraft fees. Rather than posting transactions as they occurred, Wells Fargo reportedly reordered the transactions from highest to lowest, pushing customers into overdraft more quickly and increasing the number of times they were charged overdraft fees. Plaintiffs in the Wells Fargo lawsuit were charged anywhere up to $35 per overdraft transaction, according to court documents.

In 2010, US District Court Judge William Alsup agreed with plaintiffs that they had been misled by Wells Fargo’s practices. The judge awarded customers $203 million finding that Wells Fargo violated California law, earning up to $1.4 billion in overdraft penalties in California between 2005 and 2007.

“These neat tricks generated colossal sums per year in additional overdraft fees, just as the internal bank memos had predicted,” Judge Alsup noted at the time.
“The bank went to considerable effort to hide these manipulations while constructing a façade of phony disclosure.”


Judge Alsup noted in his ruling that even customers who kept precise records of their bank accounts could not reasonably be expected to know that their bank would change the order of their transactions to trigger up to 10 overdraft penalties. He further found that not only did Wells Fargo fail to warn customers about its posting practices, it misled customers into thinking that purchases would be processed in chronological order.

Wells Fargo then appealed to the 9th Circuit Court of Appeals and later filed a motion to the Supreme Court to hear its case. When it appealed to the Supreme Court, Wells Fargo argued that plaintiffs had not proven they relied upon written policies provided by the bank. But the Supreme Court said it would not hear Wells Fargo’s appeals, effectively upholding the $203 million award.

The lawsuit is Wells Fargo Bank v. Gutierrez, et al, case number 14-1230, in the Supreme Court of the United States.

READ ABOUT CREDIT UNION EXCECESSIVE OVERDRAFT FEES LAWSUITS

Credit Union Excecessive Overdraft Fees Legal Help

If you or a loved one have suffered losses in this case, please click the link below and your complaint will be sent to a financial lawyer who may evaluate your Credit Union Excecessive Overdraft Fees claim at no cost or obligation.

READER COMMENTS

Posted by

on
OMG I can't believe what I'm reading... I've been charged several times over years for overdraft fees, some of them I accept I mad it, but most of them they always say that the transaction was posted later so is not my error but neither their, they blame the company who charged me to post the transaction the date after I went overdraft... THAT'S SO ABUSIVE!!!! WHAT CAN I DO????

Posted by

on
How do I get in on a lawsuit against them I been loooing for a telephone number I can call they promised me 300.00 when my account went from a secured to unsecured I never got it and they also changed the order of a lot of my purchases in order to incur overdraft fees and they also closed and opened a new account without my permission

Posted by

on
I got $259 total in fees with the overcharge service that I never was told and even if They offer I wouldn't accept since it's as having a credit card. I got 4*35 fees in a 2 weeks period (oct26-nov10) but since the first they shouldnt let take more than what I had.also they charged 35 for a $10 Google app and also 35 but they didn't paid my phone bill. They covered the small $10 and didn't the phone $70 also why would they give people borrow money without their concern and without knowledge. Also some how they stole $500 in August but next day they moved to 300 when in any cashier out of the bank the most is $300 I always had per day. Called line service and they just want me to pay all or will get me to collection. They said I added. That service when I opened account that yesterday 12-29-16 the person who opened account with said she never gave me that service but the bank just wanted to help me when they saw I was taking more $ then what I really have. Cashier lady and phone service versions don't match. I asked both to tell me when I agree for that service and why wait until I had several fees. I told the cashier I will get legal help and she will be notified to appear in court for doing fraud to make their season bonus by don't letting customers know she would add that without me signing or agree . She even told me that she got all in camera as intimidation but I told her I got all in writing and those documents weren't signed by me or my dad. I'm so mad if the damn bonus was all about I would prefer her to tell me if I could do her the favor just to let her reach the total accounts and after that to cancel it. Not shady as they do. I told her also about the lawsuits they're getting for doing it and the total of people fired cashiers as managers involved because those ghost accounts or 3rd party accounts. I would try for the 3rd and last time today in the evening by phone and talk to the phone service line that they have different conclusions in date ,time, and more things that showed what this bank it's doing even when they should not doit. Also I know collection is a government scam same as IRS
If even there IS NOT A LAW IN ANY OF THE 3 DIFFERENT CONSTITUTIONS THAT MAKE THEM ABLE TO PROCEED, that makes them a illegal organization ,fraud,that is a federal penalty . And if that is not enough why they have me as a corporate piece? All names of any factory or business is mandatory to write it all CAPITAL LETTERS same as they do in all our documents when we signed as a corporation or factory is created with the only purpose of GENERATE PROFITS THATS WHY ALL BIRTH CERTIFICADES OF ANY NEW BORN IS NAMED IN ONLY CAPITAL LETTERS AND THATS WHY CENTRAL BANKS-FEDERAL BANKS ARE PART OF THIS. THAT WAS THE PURSOSE WHEN THEY CHANGED THE FIRST CONSTITUTION TO PROTECT US THE PEOPLE FROM THE TIRANY OF SHADOW GOBERMETS AND CORPORATIONS FOREIGNT OR DOMESTIC THAT THEY CHANGED WITH A FOREIGNT CONSTITUTION BRITISH AND THE FREE TRADE COMERCE . IF THEY STILL deny I will fill up my claim

Posted by

on
I have noticed that wells fargo added my cell phone charge, then the next day remove it from pending status completely off the account, then the day before i get paid place it back onto the account as negative. I have also just noticed that I was charged $140 of overdrawn fees on the 12/28 the day my paycheck went in when everything posted on the 28th. Are there anymore lawsuits against these people?

Posted by

on
I've banked with WF since 93,well this month somthing very strange started happening,some very strange Mobil deposits showed up.well I don't even know WTF is going on,or where they came from,OK they sent $980. Back to where I dont know,well the same day a $60 debit shows up also.a total of $1240 was suppositly deposited,an as fast as deposit wham bam it's gone,first it there n it's not.well these jerks are gonna take $334.47 out of my social security check,well Merry xmas to me,I'll end up homeless because of this BS an greed.yaaay what I always dreamed of.im disabled an don't know what to do,my rents due in a week,so no rent,no food,no meds.really sad.thanks WF u JERKS!!!

Posted by

on
Wells Fargo Bank charged me v overdraft fee's , that where much higher than it should be. They then closed my account to cover their tracks. And gave me a new debit card without b even telling me they closed my account. They charged me over a $160 dollars in overdraft fee. I need help they won't corporate in anyway. I have never seen this kind of blatant manipulation and fraud from a bank

Posted by

on
i have been charged $734 worth of fees what do i do?

Posted by

on
I would like someone to contact me about this same issue I am currently and have been experiencing with Wells Fargo for the last several years. Perhaps just using the correct terminology with the customer service representative will result in refunded fees.

Posted by

on
I have been woth wells fargo since 2010 and have had thousands in overdraft fees taken out of my account and sometimes made hundreds of dollars negative bevause of the fact. How do i get my money back??

Posted by

on
When I was a account holder with Wells Fargo back in 2006 - 2012 I stayed in dept with overdraft fees due to then holding transactions then to take even more fees in a single transaction. That would hurt mentally and financially considering I didn't make much money anyway. They always had their unexplainable reasoning what happened and it ended up being what they claim my fault. If I didn't loss at least $140 per month in overdraft fee, I'm not black and born African American I am.

Posted by

on
I thought I was seeing things on my laptop when the order of the bills I paid changed. When I called to inquire, I was told that they pay the highest bills first since they think they're the most important. How dare they assume which of my bills are the most important! I purposely paid my bills in a certain order because I knew I would be short, I actually waited two days before paying the last bill which I knew would cause me to overdraft. I didn't mind paying one $35 fee, however, I ended up with 5 fees because of their sneaky policy. When I looked at prior statements, I realized that it wasn't the first time. Also, they allowed my brother to open a trust account (we are co-trustees) with only his name and our father's on the account. My father already had an account there with us as co-trustees, therefore, Wells Fargo had the trust documents. Can you guess what happened?

Posted by

on
Wells Fargo continues to charge overdraft fees based on re-sequencing from high to low charges. They also do not send you a notification text immediately when you overdraft (but will send a notification for everything else even when you have alerts set to send notification for all charges equal to $1 or more) which does not allow customers to deposit money into their account in a timely manner. Lastly, Wells Fargo has changed the authorization date to a day later so that they can charge overdraft fees (the charge was made and pending on 11/2/16 yet on the morning of 11/3/16, the charge was listed as authorized on 11/3/16).

Posted by

on
This is the first time I am hearing of this lawsuit. Wells Fargo charged me thousands of dollars a year on my personal and business accounts in overdraft fees during 2013- 2014. I thought I was alone in this matter. Is there anything I can do to get some of it back

Posted by

on
own small business and wells fargo has repeatedly charged overdraft fees as they do not credit deposit in timely manner.

what can we do? is it too late to join class action lawsuit?

Posted by

on
I have been hit by fees on 2 savings account even after closing one of them. Lets not talk about overdraft fees which have put me in the negative, then just today I checked the savings account I did have, has dissapeared!!! Like it never existed!!!! 3 years of paying account fees that I didn't have and overdraft charges, I want to stick it to them like they have done me. I work extra hard for my money and for them to defraud me like this is absolutely wrong!! Broke in Texas. Someone please help. I want all of my money back

Posted by

on
I am in the middle of a battle with Wells Fargo for overdraft fees. These fees have impacted my life so greatly and cause me such financial distress. What can I do to join the lawsuit?

Posted by

on
Woooow!!! I just happened up on this article. This is exactly what is happening to me here in Houston, Tx. They may have lost the case in California but they are definitely making up their losses here in Houston. Lesson, not learned!

Posted by

on
I made two purchases with my debit card on sept14.2016 $18.97 and $29.99 I usually call automated system to Chen all transactions I notice wells Fargo paid the larger amount first and that was not how I made the purchase I placed the smaller amount first

Posted by

on
Been with WG 15 years . Have experienced gradual Overdraft charges . When I call the bank I get confusing info and the charges still stick . Is there a lawsuit for state of Minnedota, or is their a lawsuit I can be included in?

Posted by

on
I have been with wells Fargo for over 14 years and had similar experiences with the reordering of my purchases and it was so bad i wanted to even close the account but I held on how can I get back some of those illegal fees. When I go into the bank since they had the power and the authority I was scolded for my action

Posted by

on
Just got a settlement check for $742 today. Could not believe it, very happy.

Posted by

on
Wells Fargo finally paid off their $200 million lawsuit for the overdraft fees in April. I've heard nothing about this in the media.

Posted by

on
I have been with WF since 2008. I have always been charged fees due to them reordering the transactions. No matter how I manage to post all small items first and then do my grocery shopping which is the largest transaction twice a month they always end up posting the big one first. And they always have a different excuse when I call. And several times they charged me fees for checking a balance at a non wells fargo atm which I have never done. I always make sure how much money is available and how much will cause overdraft before I ever leave my house. On 2 seperate occasions they charged me bal fee's which caused an overdraft, then they hit me up 2 more overdrafts because of this. Makes absolutely no sense.

Posted by

on
FYI Wells Fargo used to be Wachovia bank at least in the eastern US. I was with them as Wachovia and seem to recall some peculiar issues with overdraft, even then, that are similar to the current issues they have. I ended up coupling to my savings acct to alleviate this issue but you need to beware if you do this as you will need to monitor whatever acct you connect it to for overdraft protection to know if you are being charged overdraft fees ( it can be connected to a credit card also ) so if you are not paying attention they could be wailing on you for overdraft fees without your knowledge. Currently looking into alternative banks because of this policy by Wells Fargo. i would not trust any of the major banks but look to go with a local credit union. ALL of the major chain banks WILL be scalping ALL unsecured creditors in the next few years when the next financial crises hits!!! ( this is YOU!!!! your checking / savings acct is nothing but an I.O.U!!!! google it, its called fractional reserve banking) Thats why all the money printing. But money is REALLY nothing more than DIGITAL DATA!! Now there is talk of doing away with large bills ($50, $100) so its harder for YOU to buy things with YOUR money and it stays in the digital realm where the BANKS control YOUR "money" and YOU are at the bottom of the chain and at the end of the line where SECURED creditors ( other banks, financial institutions, corporations, the very rich ) are at the front and will get repayment FIRST from YOUR money ( ie.. checking, savings ) Not that there is anything wrong with being a corporation or very rich, there isnt, but they have leverage in the financial realm because of there positions, that's just the way it works

Posted by

on
I closed my account with Wells Fargo here in NC because of them charging me fees that they were not supposed to be charging me.

Posted by

on
Wells Fargo has ripoff people for years with over draft fees you know what they do with the money give their employees gifts an parties someone I know used to work for them told me they are crooks thank god the courts have finally gotten wind of their greed pay everyone there money back you crooks

Posted by

on
I have been with Wells Fargo since they purchased First Interstate. Do this lawsuit include Texas?

Posted by

on
Boy do i know all about this i just got charged$350.00 for something i been did i was told when you use your debit card pin it posed to come out of account a.s.a.p not tru. They wait till you spend money then charges you

Posted by

on
Just curious as to what to do to be involved with this. I have been with wellsfargo since 2007. Well it was called something else back then. They have been excessive charging me for overdraft fees and some things i didn't even buy and still don't refund me the overdraft fees even if I am not at fault. What can I do. I have lost so much of my hard earned money over this. I would love to know where to go from here.

Posted by

on
I have continued to argue with Wells Fargo over this exact problem. Then went to a local branch manager who refused to refund the fees because the bank elected to change my account type without my consent then charged me separate fees based on an account that did not get direct deposit when that is why I opened the account for SSI direct deposit.
I have the documentation to prove this.
I would think they wouldn't continue with a practice that is already in court process though, so maybe I have no clue what I am talking about.

Posted by

on
So I was a wells fargo customer for over 8 years. I finally left them for chase last year. If this affected me too what happens now? I never heard about this.

Posted by

on
How can I be included in this lawsuit,I kept a lot of my records showing where Ive been charged a montly fee on a account that does not have a fee since I had Direct Deposit of SSI. This was almost 7 yrs ago and my acct was closed over a OD that I refused to pay. then out of the blue 7 yrs passed and Wells Fargo tried to contact me telling me they can seize the money out of my Bank of American acct at anytime. My acct with B of A is SSI and a penson which they can't touch and its pass the statue of collections time frame

Posted by

on
I have been banking with Wells Fargo since the 1990's and remember the many overdraft fees and feel I was over charged, as others discussed in this law suite.

Posted by

on
I am and have been for many years a Wells Fargo banking patron.

Posted by

on
Hi. I have been charged so much money on over draft fees. I live on a social security check due to lupus. And have paid out so much money on over draft fees.

Not fair at all.

Thank you

Posted by

on
I had to accounts with Wells Fargo what do I need to do to file a claim?

Posted by

on
I have been with wells Fargo for about three years they have changed me overdraft fees galore in the last year's at least twice a month if not more and they never put charges in any kind of order and there is always fees to everything plus I get charged for money orders 5 dollars each they lied to me the deal was if you do electronic deposit over five hundred dollars a month there would be no charge for money orders this bank is a joke there is always a fee for something and the customer service is crap I'm changing banks soon as possible.

Posted by

on
I have been a customer of Wells Fargo since 2008. I have numerous hours and numerous calls to their 800# in regards to them changing the order of purchases and charging me $35 for each small item out of order instead of the order I made the purchases using the small utilities bills coming out first and then going grocery shopping and having the large item come out. So instead of having 1 fee which I was expecting they would hit me with 3 or 4. This has happened for years with them always having a different excuse. I would be happy to turn over account statements going back as far as we can get them!!!!!!!!!!!!!!!

Posted by

on
Wells Fargo has continued to use these methods despite the lawsuit win. They continually do it to me.

Posted by

on
Hooray! Wells Fargo is extremely corrupt . . . I had an account with them around 2004, and I had so many errors and overdraft charges and arguments with them. It was very clear to me they were criminals. It is too late for me now, but I am so happy you are pulling them out into the light of day for stealing from their customers.

Posted by

on
I started noticing that Wells Fargo does not post my checking account transactions as they occur. Wells Fargo seems to push me into overdraft more quickly and increasing the number of times I am charged overdraft fees. I live on limited fixed income for disability from Social Security and MetLife Long Term Disability payments. This has gone on for the last few years and when I speak to them in their office or the phone, they will sometimes refund them, but often will not. When I showed them their own policy, they just ignored it and double talked. I'd like to find out if there is any legal recourse or restitution.

ADD YOUR COMMENT ON THIS STORY

Fields marked * are mandatory. Please read our comment guidelines before posting.

*Name:

Note: Your name will be published with your comment.

*Email Address:

Your email will only be used if a response is needed.
*Your Comment:

Are you the defendant or a subject matter expert on this topic with an opposing viewpoint? We'd love to hear your comments here as well, or if you'd like to contact us for an interview please submit your details here.


Click to learn more about LawyersandSettlements.com
Request Legal Help Now! - Free