Judge orders Wells Fargo to pay back $203M in fees
Anyone see this? While this is great news, and those who are with WF as a bank know EXACTLY what the judge is talking about - not just in overdraft fees, but in the order at which fees show up, I am a bit confused though. From what I can tell here, the judge basically reversed every overdraft fee ever made to their customers between 2004-2008? It seems almost too good to be true. It says "as a result of the policy" which I think most people's situations are a result of when you think about it. AMIRITE?
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Re: Judge orders Wells Fargo to pay back $203M in fees
That estimated $203M is a pittance for WF, and they'll drag out an appeal for years before ever paying it.
The practice preyed on the most vulnerable customers -- those who live life close to the $0 mark. It's crazy that they could even think of doing two of these practices: rearranging transactions and allowing debit cards to be approved when there was no money to back them up. |
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IMHO, it is an objectionable business practice. I understand it, but it's a great way to piss off your customers.
WRT WF, in 2008 they were a $41.9 billion company with profits of $2.7 billion. As TL says, this is a drop (albeit a big one) in the bucket. The ripples are what I think will be interesting. If WF did this to me several years ago and caused me to default on my nearly-paid car loan, and that car was repossessed, would I have cause to go back to WF to seek compensation, since what they did was "unfair and deceptive"? How about that house that was foreclosed on? The appliances that were repossessed? The apartment I couldn't get into because I couldn't afford the deposit, since WF absconded with so much of my money? And of course, extend that to other financial institutions. They've *got* to be examining this for how it will impact them. We haven't heard the last of this, I'm thinking. |
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So on any given day that OD charges were triggered, the customer would still owe at least one of them (otherwise there would have been no OD in the first place), and possibly more. What I don't understand is why a bank that is pulling in over a billion in profit is being so aggressive with a policy that most customers and potential customers will be outraged by when they find out about it--especially if it only brought in 203M over 4 years. Why risk the PR hit for 50M/year when you're pulling in 2B overall? |
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And of course, people say to me, "Oh, you should write everything down". But in this day and age of quick lunches and card swiping for almost every purchase, it is just not practical. WF knows this and saw an opportunity to profit from it. Their online banking system creates the illusion informative real-time tracking, only to barrage you with charges on Tuesdays that you had completely forgotten about. I have had charges show up weeks late that stores confirmed were already processed. I mean, you will see the old ladies at the grocery store in front of you, with their chequebooks in hand and holding up the queue as they document it all. I am sure they never incur such fees. But I don't have the time, I admit it, but because of that should my own bank be able to screw me so badly just because I like to make use of it? |
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