Wells Fargo bank not only has an outrageous policy regarding overdrafts but also nobody was able to provide me with a single legal, or otherwise, authority for such.
I looked everywhere on bank website and agreement to find out where is the small print that provides that all the charges are deducted from the biggest to the smallest. To illustrate the issue I will provide an example:
Balance in the account is $500.00, you have 2 checks comming in in the amount of $450, all debit ammounts are presumably posted already.
You use your credit/debit to buy gas; gum, and soda and lunch [ equivalent of $20] in 3 places; you check your account next day and you own ca $100 in overdraft charges.
How is that possible?
If some credit card transaction for $50 happen to post not instantly but few days delay on the same day this is what happens:
Bank deducts the $450 check first; balance $50
then deducts the $50 transaction balance $0
then deducts the atm transactions and charges $33 for each.
So for the in reality the bank covered $20 worth of charges and paid itself a $100 for the privilege.
If the bank would deduct in the other order, all but the check transaction would be covered. The result only one $33 charge would apply.
I was told that federal law provides for such scheme, then state law provides for such scheme then "I do not know". To date I still am unable to receive a single answer why.
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