Wells Fargo just got a huge slap on the wrist for a bank fee gouging practice, called transaction sorting. Transaction sorting consists of maximizing overdraft fees by processing debits in an order favorable to the bank. It can turn a $5 cup of coffee into a $35 cup of coffee. Each overdraft cost the consumer [...]
Entries Tagged as 'overdraft protection'
Wells Fargo Ordered to Pay $203 million for Manipulation of Overdraft Fees
August 13th, 2010 · 5 Comments · Banking
Tags: financial reforms·overdraft fees·overdraft protection·transaction sorting·Wells Fargo
Federal Bank Adds New Regulations on Overdraft Fees
November 18th, 2009 · 1 Comment · Banking
In recent years, most banks started approving, rather than declining, debit and check transactions that exceeded what customers had in their accounts. The banks’ rationale: consumers would rather pay $39-a-pop bounce fees, banks contend, than risk embarrassment at the checkout counter. I don’t know about you, but I would rather have my card declined. We’ve [...]
Tags: ATM card·Banking·checking·checking accounts·Debit Card·Federal Reserve·overdraft fees·overdraft legislation·overdraft protection·recurring debit
