Thread regarding Wells Fargo & Co. layoffs

@1vxh+1b9JCwKJ I can't remember if it was Citi or Citizens, but several years ago they were sued and had to fix this. The legal requirement now is that checks must be processed smallest to largest.

Social justice warrior is just a term white supremacists use to justify their views.

@bpn+1b9JCwKJ. A ton of banks were called out on reordering transactions to generate excessive overdraft fees.

Instead of processing transactions sequentially on the same day, they would reorder from largest to smallest.

Example: $500 in checking account at start of day.

Say you have 5 transactions averaging $5 at the start of the day. The next transaction is $200. $500-$225=$275. But then the customer forgot that on this day a $300 car payment is drawn out. $275-$300=-$25.

Well in this order, that $300 car payment causes the balance to go negative. But banks want to maximize fees. So they reorder the payments, not sequentially as the come in, but largest to smallest for the day.

So now they record it taking out the $300 payment first, then the $200 payment. The balance is now $0. So they then hit the customer for the five separate $5 transactions, each one getting an overdraft fee.

A common overdraft fee was $35. Sequentially recording the transactions, the fees generated $35. Reordering them generated $35×5=$175 in fees.

@bpn

There’s a new search engine out there, called Google. You should check it out sometime!

Post ID: @bpn+1b9JCwKJ

Don’t really want to insult you, but try reading the news.

I've never had an over draft fee, even when I was poor, unemployed, in college, whatever. Amazing how simple it is to avoid fees like this, CC interest etc.

@wwu+1b9JCwKJ

Hey, “Happy social justice warrior”,

Got any proof on “WFC keep getting caught with their hand in the cookie jar for taking advantage of their own customers” and your claim of “reordering transactions to purposely trigger overdraft fees,”

Is this something which you engaged in? If not, why didn’t you report it?

Post ID: @ilz+1b9JCwKJ

Thank you. I will look at that.

Did you read the Bloomberg article that states tye regional banks make more money on overdraft fees than the Big 4 as a % of revenue? The Big 4 will be fine as they'll find other revenue, but the regionals may suffer a little or could open up more consolidations.

I did just read about WFC overdraft fees and services, as recommended below. I had no idea WFC charges a fee of $35 per hit. I think that is quite excessive. I can understand where people who cannot carry an excess of money in their checking accounts would be quickly put into a bad place without making “the choice” to do so. Especially when the account is set up for automatic bill pay, debit cards, ATM withdrawals and multiple people (a couple) are using the same account. WFC also charges $35 even if we return the item for insufficient funds. Overdraft Rewind is a somewhat decent service, a step in the right direction perhaps, but the rules and requirements around it are incredibly tight and restrictive.

I see no reason why customers would not move their banking business to Ally today. It’s a no-lose decision. Ally pays higher interest on their checking and savings accounts and CDs as well.

Wells Fargo is going to have to get with it or we will keep falling further and further behind. My hope for Wells Fargo is to be a leader, not always the one who is dragging their feet in to the prior decade.

Is that why they cleaned out the top 5 floors of their HQ? I look down into their top floor from my home.

I move to a new bank that offer me money to move there about $400 to be banking customer

Spending more money than one has is a choice. Sometimes people don't realize it, sometimes they must and it's a stressful situation. WF customers can choose 4 options for what happens when they overdraft, including reimbursement. Lookup WF Overdraft Services.

Post ID: @fjv+1b9JCwKJ

Hey, your mechanic told me he is glad you are not a social justice warrior. He has been overcharging you for years. In fact he got you for a few repairs that were never needed. But he is not a non-profit, so he knew you would be cool about it.

Post ID: @fjv+1b9JCwKJ

One does not have to be a “social justice warrior” to demand fairness in business practices any more than one has to be a “social justice warrior” to be against human trafficking and genocide. Or if that makes me a “social justice warrior”, than I’ll happily accept the label.

Banks like WFC keep getting caught with their hand in the cookie jar for taking advantage of their own customers. We never volunteer to straighten up - we only do so when a light is put on low integrity practices.

Banks reordering transactions to purposely trigger overdraft fees, banks flooding college campuses offering credit cards to kids with no income, banks had to be forced into fair credit card practices and limiting amount of fees charged, WFC charging auto-loan customers for insurance they never consented to, WFC pushing reps to sell complex proprietary products with higher fees, WFC forcing mortgages into forbearance without consent, the list goes on and on.

I am all for anything that forces Wells Fargo to be a clean business who treats their customers, their employees, their shareholders, and the communities they do business in with integrity, dignity and respect.

@qfw+1b9JCwKJ Same at WF. For years Carrie and KZ resisted any-and-all changes that would have resulted in fewer customers overdrawing, because deposits depended on that steady flow of $ for their P&L. It was always, how do we LOOK like we're trying to help customers not overdraw without actually reducing overdraft income. It was only when regulatory and legal risk became too great, that we started to do anything substantive.

I know when I worked at Chase most of the profit came from fees. So not surprised in the least.