The lawsuit filed in Northern California Federal court, accuses Wells Fargo of devising a system to take advantage of customers’ overdrafts in order to charge them fees. The key to the claim is that rather than debit an account in the order in which the transaction was made, the bank withdraws the highest amount first, increasing the likelihood of an overdraft. Then it fails to notify the customer about the impending overdraft that would give them a chance to pay differently; perhaps by adding funds from a savings account or paying with a credit card.
This suit is similar to the one filed against Bank of America earlier this month I mentioned in this post.
Complaint courtesy Courthousenews.
Reading Tea Leaves by Randy Wilson 