Wells Fargo Bank (hereinafter called " the Bank") is secretly enrolling checking customers in a program I will call "Overdraft-3". The Bank provides no separate disclosure of this event. For the purposes of this complaint, the word "disclosure" does not refer to the 1/2" book of bank rules given out at sign-up. Here are some interesting facts. There is no mention of this product on a customer's monthly statement. Overdraft is a loan, but there is no loan agreement. There is also no Truth in Lending statement. There is no application, so there is no way to know how the loan is secured or the terms of the loan agreement.
The Bank also offers a very similar service which I will call "Overdraft-2". This shell game of similar terminology is not a coincidence. Overdraft-2 allows a customer to link their checking account to another account, like a savings account.in this more traditional program, funds are transferred from savings to checking automatically to cover an NSF condition. The fee for this service averages around $35.00 per incident. An NSF incident of large enough size could trigger both Overdraft-2 and Overdraft-3, resulting in the same fee for each event.
Although the Bank seems to keep the accuracy of your email address in front of you, no email notification is sent regarding these events. If security were an issue, there would be an email message reminding to to log onto the secure site to view the real message.instead of email, the slowest method of communication legally acceptable is used—U.S. Mail.By the time it arrives and is read, the overdraft cancer has spread unknown to numerous transactions. Many of these piling up transactions are originating from an ATM-Debit card used at a point of sale.
As we all know, one benefit of the ATM-Debit system is immediate decline of an invalid card, lost card, stolen card, or system compromise. The suspension of card access in a security break situation is instant.in the case of ongoing overdrafts, the Bank benefits the most from not suspending access to the card. This way, more fees per incident can accrue.
Who is suffering from this issue? The poor, the elderly, the sick, and those who cannot afford legal council to review the 1/2" thick welcome brochure for unethical business practices. Now an attorney is necessary to defend you from your bank. Customers enjoy no choice, option, timely notification, ability to review, or protest the program. One more interesting fact. This loan has no monthly statement. It isn't even mentioned on the checking statement. How can it be reviewed for error, fraud, or misuse? The reason is simple. It is an unethical, extremely covert, unadvertised, and unwanted program. The Bank knows this, and buries it.
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