What is the name of your state (only U.S. law)? CA
My son has a checking and saving account with Wells Fargo Bank.
On this past Monday night he called the bank, the automated system told him he had $ and some change in the account. The next morning it said he had -$. so he called and was told three debits occurred, causing him to become overdrawn. Two of the debit he did not make and are in the amounts of 2.26 and 3.03. the other was 12.90.
So I told him to come over and I would take a look. I checked his balance at the end of the banking day before they charged him the first two overdraft charges and it said AFTER the debits of 12.90 and 2.26 he had 8.11 left in his account BUT they charged him OD fee regardless.
Then the next day he had additional charges, which since had 8.11 in his account would have totaled him being overdrawn by 4.96 but the bank has the policy of no OD fees if under $5 overdrawn, still they charged him yet another OD fee.
Basically, this is the letter to them:
"I,XXXXXXX, hereby dispute the three over-draft charges of $25.00 each, totaling $75.00 charged to above-said account on 11/27/12 & 11/28/12.
According to the attached transactions record with ending daily balance, at the end of the day of 11/26/12 I still had $8.11 in my account AFTER the two transactions cleared of $12.90 and $2.26 yet you debited my account two $25.00 overdraft fees for insufficient funds on 11/27/12 for the debits of $12.90 and $2.26.
I admit I did become overdrawn by -$4.96 according to your ending daily balance however, the amount was under $5.00 so the additional $25.00 overdraft fee debited from my account on 11/28/12 , as per your schedule of fees, is in your error as well.
HOWEVER & furthermore, I dispute the transactions of $2.26 (trans XXXXX) and $3.03 (trans XXXXX) as I have no knowledge of these transactions. If these two disputed transactions did not post to my account or are removed as they are not mine, I would not have been over-drawn $4.96 either, but would have had $0.33 still in my account, which is a low balance sure, but not over-drawn. Please credit my account back the $75.00 you erroneously charged my account as even as per your accounting as provided over the telephone of balance available and your running account and daily ending balances, I was not over-drawn at any time until YOU stole first $50.00 from me and then another $25.00. As per PROPER accounting, I should as of at the time I write this on 11/29/12 at 3:47 p.m. have $167.77 in my account, not $12.48."
(All numbers were taking from THEIR transaction record.)
They are refusing to refund the OD fees, insisting he is in error, not them even though the transaction record clearly shows they are in fact in error. I am ready to file a complaint for him with the California Department of Financial Institutions and Federal Reserve and possibly contact a class action litigation attorney firm.
Still, I would like to know how they can legally get away with stealing my sons funds? I mean, he clearly has very little and every penny counts to him. He does have a savings account but they did not transfer any money from the savings to cover these supposed OD's either... Furthermore, this is the first time he has ever been over-drawn (he is 23 yrs of age.)
Thanks in advance for helpful input.