PRESS RELEASE
Federal Court Finds Wells Fargo Improperly Assessed Overdraft Fees, Orders $203 Million in Restitution
August 10, 2010, San Francisco, CA -- In a class action lawsuit by California consumers charging that Wells Fargo Bank manipulated its processing of customer debit card purchases to maximize overdraft fees, 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.
Commenting on the Court's decision, lead trial attorney Richard M. Heimann stated:
"Today, a federal court enjoined Wells Fargo from continuing its practice of manipulating their customers' accounts for the sole purpose of generating massive bank fees. These unfair practices cost California consumers huge amounts of money, and we are pleased that the Court has ordered Wells Fargo to return $203 million of its ill-gotten gains to its customers. We are grateful for the opportunity to try this case in order to successfully reveal that the bank's true motives behind its overdraft bookkeeping were profiteering and the gouging of its customers. Wells Fargo's after the fact excuses were soundly rejected by the Court, and rightfully so, as it not only never made an honest effort to disclose its true practices to its supposedly valued customers, but worse yet, misled them. This is not only an actual victory for Wells Fargo customers, but a symbolic victory for consumers throughout the country who are subjected to these kinds of oppressive business practices."
A copy of the Court's order can be found here.
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