$1.4 Billion Penalty Collected by Wall Fargo by 2007

Well’s under new investigation and suit after the new that it has to pay $185 million to settle the charges after opening unauthorized accounts, last year. The case has been settled for almost a decade. This happened as way back when banks started charging money for overdrafts. In fact, they started charging it in a chronological order from largest to smallest in order to maximize the damage. A study by Pew Charitable Trusts stated that huge over-drafters generally had incomes below the US average and the fee was consuming a major portion.

Wells Fargo has alleged that its practices were not according to marketing material in which debit card and ATM transactions included reduction of available balance immediately and purchase amount was deducted. These cases were consolidated under Judge Lawrence King in federal district court. Lately, Well Fargo assessed over $1.4 billion in overdraft penalties between 2005 and 2007.

Well Fargo is a bank that has been charged with $185 million due to opening unauthorized accounts, last year. The case was settled about 10 years ago when some banks started charging money for the overdraft. In fact, a chronological system was charged to get the most benefit. The drafter included were those who had income below average. Judge Lawrence King in federal district court alleging the bank of doing ill marketing practices. It has assessed over $1.4 billion in overdraft penalties between 2005 and 2007.