This is an ongoing investigation and a potential class action lawsuit against Wells Fargo and other banks related to insufficient funds/overdraft fees.
This investigation focuses on whether Wells Fargo and other banks automatically re-sequence electronic debit transactions from highest to lowest dollar amounts instead of posting them in the order in which they occurred. This alleged practice drives customers' checking accounts into a negative balance as quickly as possible, and results in duplicative overdraft charges.
For example, assume a consumer has a checking account balance of $100, and then makes purchases of $20, then $40, and then has an electronic debit from their account in the amount of $200. Instead of first crediting the $20 and $40 purchases and charging a single overdraft fee for the subsequent $200 charge, Wells Fargo and other banks allegedly re-order these transactions from highest to lowest, and then charge consumers three different overdraft fees. A single overdraft fee is over $30 at many banks.
Name (Stock Symbol)
Wells Fargo & Company (WFC)
Wells Fargo & Company, through its subsidiaries, provides retail, commercial, and corporate banking services principally in the United States
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