Uber-Squaliforme Wells Fargo has been hit by the US District Court in California for raking in billions of overdraft fees by manipulating the posting dates and times of debit card charges to ensure they would collect multiple overdraft fees.
The suit, which has been grinding its way through Judge William Alsup's* court since 2007, is a class-action claim that could affect millions of customers, including former ones that they have to help track down.
Wells will not only pay $203 Million in restitution, they have to cease the practice by the end of November.
Now the question remains, will the rest of the industry simply re-write their cardholder agreements to tell customers they do it or will they do the right thing and process the debits in the proper order?
The Honorable Judge Roy Bean.
*(If the name of the Judge sounds familiar to readers here, he is the same Judge that heard the Dorean Group trial and sentenced Johnson and Heineman to twelve years.)
Saturday, August 14, 2010
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