Wells Fargo Fined $200 Million for Overdraft Fees

A federal judge in San Francisco this week ordered Wells Fargo & Co. to pay $200 million to customers who were subjected to higher fees because of a bank rule of clearing higher amount checks first. Such practices often create more bounced checks, and thus higher overdraft fees.

“These unfair practices cost California consumers huge amounts of money,” said Richard M. Heimann of Lieff Cabraser Herimann & Berstein. “The bank's true motives behind its overdraft bookkeeping were profiteering and the gouging of its customers.”

Wells Fargo has indicated that it would appeal the ruling, stating that its practice of processing larger checks first is for the customers’ benefit—often those are the most important payments, the bank’s spokesperson, Richele Messick, said.