Are banks required to notify you being overdrafted? Do they have to give any time do

[Leslieeliz]

Do banks HAVE to notify you of over drafts on your accounts or let you know you'll be assessed a fee? Can they charge you a fee without giving you the opportunity to add funds to your checking account? My bank (wells fargo) charged me a fee and said it was because a payment processed the day before my direct deposit hit but at no point was my account ever at a negative balance. Payment was apparently posted on the 4th and direct deposit hit on the 5th but at no time on the 4th was I notified of insufficient funds nor did my account ever reflect the payment or any type if negative balance. They say my account processed everything at midnight so on the 5th my processed and posted the payment for the 4th but by it was too late for me to do anything about it. I also was never notified. I may be wrong but is it legal to process everything at that time when all day your account was in good standing and then later charge you saying you should have known?

 

[Zigner]

Do banks HAVE to notify you of over drafts on your accounts or let you know you'll be assessed a fee? Can they charge you a fee without giving you the opportunity to add funds to your checking account? My bank (wells fargo) charged me a fee and said it was because a payment processed the day before my direct deposit hit but at no point was my account ever at a negative balance. Payment was apparently posted on the 4th and direct deposit hit on the 5th but at no time on the 4th was I notified of insufficient funds nor did my account ever reflect the payment or any type if negative balance. They say my account processed everything at midnight so on the 5th my processed and posted the payment for the 4th but by it was too late for me to do anything about it. I also was never notified. I may be wrong but is it legal to process everything at that time when all day your account was in good standing and then later charge you saying you should have known?

Here in the US that's perfectly legal and normal. They aren't there to hold your hand.

 

[adjusterjack]

I also was never notified.

Read your account holder agreement. It'll spell out the overdraft process and everything else about how your account is handled.

That's your "notification."

I'm sure that the bank will give you another copy if you threw yours out without reading it when you opened the account.

 

[quincy]

Do banks HAVE to notify you of over drafts on your accounts or let you know you'll be assessed a fee? Can they charge you a fee without giving you the opportunity to add funds to your checking account? My bank (wells fargo) charged me a fee and said it was because a payment processed the day before my direct deposit hit but at no point was my account ever at a negative balance. Payment was apparently posted on the 4th and direct deposit hit on the 5th but at no time on the 4th was I notified of insufficient funds nor did my account ever reflect the payment or any type if negative balance. They say my account processed everything at midnight so on the 5th my processed and posted the payment for the 4th but by it was too late for me to do anything about it. I also was never notified. I may be wrong but is it legal to process everything at that time when all day your account was in good standing and then later charge you saying you should have known?

What is the name of your state, Leslieeliz?

The United States Supreme Court declined on April 4, 2016, to review the $203 million judgment awarded against Wells Fargo in the class action case, Gutierrez v. Wells Fargo Bank, N.A.. The 2010 case originated in California over Wells Fargo's manipulation of accounts to maximize overdraft fees charged to customers. In 2014, the California Appellate Court affirmed the lower court's decision.

Here is a link to the case: http://www.leagle.com/decision/In FDCO 20110318838/GUTIERREZ v. WELLS FARGO BANK, N.A.

Here is a link to the SCOTUS blog on the case: http://www.scotusblog.com/case-files/cases/wells-fargo-bank-v-gutierrez/

Wells Fargo has been accused of continuing the same "fraudulent business practice" that led to the original lawsuit and the multi-million dollar judgment. You might want your account reviewed by an attorney in your area, Leslieeliz (whatever area of the country/world that might be).

 

[Zigner]

What is the name of your state, Leslieeliz?

The United States Supreme Court declined on April 4, 2016, to review the $203 million judgment awarded against Wells Fargo in the class action case, Gutierrez v. Wells Fargo Bank, N.A.. The 2010 case originated in California over Wells Fargo's manipulation of accounts to maximize overdraft fees charged to customers. In 2014, the California Appellate Court affirmed the lower court's decision.

Here is a link to the case: http://www.leagle.com/decision/In FDCO 20110318838/GUTIERREZ v. WELLS FARGO BANK, N.A.

Here is a link to the SCOTUS blog on the case: http://www.scotusblog.com/case-files/cases/wells-fargo-bank-v-gutierrez/

Wells Fargo has been accused of continuing the same "fraudulent business practice" that led to the original lawsuit and the multi-million dollar judgment. You might want your account reviewed by an attorney in your area, Leslieeliz (whatever area of the country/world that might be).

The difference in this case is that the account was overdrawn on the 4th, and the direct deposit hit on the 5th.

 

[quincy]

The difference in this case is that the account was overdrawn on the 4th, and the direct deposit hit on the 5th.

Oh, I know. And I don't necessarily disagree with your answer to all of the original questions.

On its face it appears that the overdraft fee by Wells Fargo charged against Leslie's account is a legitimate fee for not having enough money in the account on the 4th to cover a transaction made on the 4th. I agree that Leslie is responsible for knowing her account balance so she doesn't spend more than she has in her account.

But there is a question as to whether a transaction that was made by Leslie on the 4th that would overdraw her account should have been declined by the bank at the start, due to a known insufficient funds in the account to cover the transaction. See Gutierrez.

It appears that all transactions were processed at midnight on the 5th, the transaction on the 4th along with the direct deposit on the 5th. If the direct deposit had been credited first, apparently there would have been no overdraft fee charged. In Leslie's case, it also appears that Wells Fargo did not err by failing to credit to the account a deposit made before a debit transaction, if the transaction on the 4th posted to the account before the direct deposit posted. It appears on its face that the overdraft fee is a justifiable charge to the account, but only because Wells Fargo allowed a transaction to clear when the transaction perhaps should have been declined due to insufficient funds.

Maybe my suggestion to have an attorney review the account is an expense not worth taking and a simple personal review is all that is needed (although personal reviews of Wells Fargo's debit/credit postings can be confusing at best). Wells Fargo has had so many customer complaints lodged against it for its funny accounting system, this even after lawsuits have called them out on their debit/credit practices, I think it can be smart to question any overdraft fee charged by Wells Fargo to an account.

 

[Leslieeliz]

It happened in Arizona and thanks. I appreciate it.

 

[quincy]

It happened in Arizona and thanks. I appreciate it.

Thank you for providing your state name. Wells Fargo practices have been called into question in Arizona as they have been in other states.

I again would review your account statements to see how the transactions are being posted. You could compare the statements to your account holder agreement with the bank. You should know that there have been problems noted with the Wells Fargo account agreements not reflecting accurately the debit/credit practices of the bank.

We all appreciate the thanks, Leslieeliz. Good luck.