Wednesday, 1 November 2006

Don't use Wells Fargo as your bank

Their online banking seems attractive, but it has a fatal flaw.

It doesn't show a running balance with each transaction, just a mythical 'available balance', and a long list of 'pending' transactions. The trouble is, the pending transactions become actual at different times. In particular, any debits become actual before any credits. So, if you have a large pending deposit of, say, your salary, a few small transactions that come through first can take you overdrawn. Wells Fargo will then charge you $33 per transaction for these overdraft transactions. The $33 doesn't pend at all, it just disappears from your account into their profits, along with all the interest they are earning on 'pending' your deposits.

As I said, avoid Wells Fargo banking.




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2 comments:

  1. Suntrust is the same way, I think their overdraft fee is a few dollars less, but nonetheless it's the same principle.

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  2. I second that: avoid Wells Fargo.

    In our case we were approved for a VA loan at 100%. However, the underwriter isn't satisfied and demands things we cannot provide; one of them a new power of attorney so that I can handle things while my husband is in Iraq. *Nevermind* he's been given one alrady and it was fine *before* we finished up his conditions for the 2nd time. Not to mention that most of the drama is from an error on the application that *they* put down. The bank has been stringing us along for so long that my daughter no longer lives with me and I'm at a friend's house quite homeless. It shouldn't matter that our credit scores aren't the best. Approved (not pre-approved) is approved. And a bank error on their part is not something I should have lost my family over.

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