Wells Fargo Abusive Overdraft Fees Class Action Lawsuit
A number of class action lawsuits have been filed against Wells Fargo for the alleged unfair and illegal assessment and collection of excessive overdraft fees.
The complaints charge that Wells Fargo does not record charges and purchases on ATM or debit cards in the order they actually occurred. Instead, Wells Fargo reorders the charges and purchases so that the largest charge or purchase is the first one paid by the bank. This manipulative practice is intentionally designed, the complaints allege, to maximize overdraft fee revenue.
With the exception of one class action brought by California customers only, these cases have been transferred to the United States District Court for the Southern District of Florida in Miami, Florida, where all federal lawsuits against the banking industry for abusive overdraft fees have been coordinated before the Honorable James L. King.
California Case Update: Federal Court Finds Wells Fargo Improperly Assessed Overdraft Fees
On August 10, 2010, U.S. District Court Judge William Alsup held in a 90-page opinion that Wells Fargo violated California law. Instead of posting each transaction chronologically, the evidence presented at trial showed that Wells Fargo deducted the largest charges first, drawing down available balances more rapidly and triggering a higher volume of overdraft fees.
On September 9, 2010, Wells Fargo filed an appeal with the 9th Circuit Court of Appeals. No funds will be distributed to the class until appeals are exhausted and the judgment becomes final. This process could take months or even years, although we are making every effort to expedite the process.
The case before Judge Alsup was brought on behalf of the following California Wells Fargo customers: “[A]ll Wells Fargo customers from November 15, 2004 to June 30, 2008, who incurred overdraft fees on debit card transactions as a result of the bank’s practice of sequencing transactions from highest o lowest.” If you are a member of this Class, you do need to take any action at this time to remain a member of the class.
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