Wachovia WAS Stealing Your Money

Posted: August 20, 2010 in Just Livin'
Tags: , , , , , , , , , , ,

Chief is NOT good with money.

At All.

When he decided to open the shop, I told him that I didn’t want any responsibility with regard to managing the money, paying the bills, doing the taxes.

I was still working at the time and even though I knew how bad he is with money, I just didn’t want that responsibility. Mostly because I didn’t have any idea how to run a business and even though he paid as many vendors as he could in cash.. sometimes he had to use the business account’s debit card. We would check the balance on the phone before we used it and almost EVERY single time, we got hit with a bounce fee. A $35 bounce fee.

The cartoonist forgot to add the loaded gun to your back

This may get confusing :: although I think that’s the bank’s intent :: but I’m going to try and simplify it for you.

We get electronic deposits from the credit / debit / food stamp cards we take.

When the processing company deposits the amount, our bank would put a 24 hour hold on it. So there was always a difference between what was AVAILABLE and what their phone system said was our ACTUAL balance.

The online information would differ from the phone information and both would differ from the ATM information.

He were losing between 300.00 and 400.00 a month in bounce fees so I had no choice but to jump on it.

I reverted back to the old paper and pencil ledger method. Dilligentlyrecording any deposits or withdrawals within minutes of them happening. I only went by MY balance because.. that’s the actual one, right?

Who cares that Wachovia / Wells Fargo has three different computer systems that didn’t interact with each other and were on all different processing times. I had my ledger.. I recorded everything the moment it happened.. what could be more accurate, right?


We were still bouncing things and every time it would happen, Chief would want to hang himself. He would call the customer service number.. stormed the bank managers office at the local branch DEMANDING to know HOW COULD THEY CHARGE FOR BOUNCE FEES BEFORE ANYTHING BOUNCED??

Or my favorite…

Having enough money in the account but getting hit with a bounce fee that resulted IN SOMETHING BOUNCING?

Or another of my favorites…

Having between a 9 and 15 dollar monthly service charge fee that just jumped to 57.00 causing MORE bounce fees..

It was completely ridiculous until it all became clear:


… and that’s just in California alone. Now include the OTHER 49 states…

What these slick bastards were doing was processing charges or deposits based on the AMOUNT (highest to lowest) .. not chronologically.

To simplify:

Say I have 200.00 in my account on Monday.

I deposit 100.00 in my account on Tuesday morning and spend 275.00 of it Tuesday afternoon.

On Wednesday, I should have a 25.00 balance.

Because Wachovia / Wells Fargo was processing based on highest to lowest money amount instead of the time the transaction occurred, they would process the 275.00 purchase first, leaving the balance at -75.00 THEN hit me with a bounce fee of 35.00 so now my balance is -110.00 THEN they would process the 100.00 deposit leaving me with a -10.00 balance.

That’s the SIMPLE example.

But when you have the kind of business we have where most of our income is based on electronic deposits with a processing company that takes their fee off the top, we’re talking hundreds of dollars bounced.

On Bank-Overdraft.com there is a form to fill out to be added to another class action suit and I’m going to encourage Chief to fill it out.

If you’re a Wells Fargo or Wachovia customer and had issues with bounce charges, I’d do the same thing.

  1. Mark says:

    wow, bankers are smart…douchebags yes, but smart. I hope you and everyone else they screwed gets paid, with interest. Friggin millionaires.

    • Leese says:

      It wasn’t just Wells Fargo / Wachovia, Mark .. so if you ever had a gut feeling about your bank statement then I’d review it closely… but from what I was reading about the class action, it appears that they were really targeting people who generally have low balances.. like me.. it’s easier to rip off people with no money, I guess.

  2. Amy says:

    I hope you manage to get large chunks of money from them! I have never liked Wells Fargo. I had someone write me a check from there one time. For me to cash THEIR check at THEIR bank – the bank wanted to charge me money. Basically, they wanted to charge me to collect the money I was owed.

    Wells Fargo is a big rip-off.

  3. datGurl! says:

    OMG that bank inside Wally World in TX is into the same shyt and do you know what they told me after I refused to pay the NSF that kept accompanying my direct deposited paycheck? The way this happens is that they take your DAILY balance and subtract PENDING charges from that. But they do that on a schedule (my paydates?). WELL DAYUMM if thats the game we all gon’ have NSF fees everytime we get paid!

    I got up at 4 am (b4 they could get there and start diggin in my money) on check day and took all my change outta that bank. And they still have the nerve to send me letters to this day askin for they bogus fees!

    the inside of my mattress is lookin pretty good. and it aint no funny fees n’ shyt.

    • Leese says:

      I’m with you DG …
      back to the mattress!!

      You gotta go over your shit with one of those lice combs or something because they will take whatever you give them and more…

  4. Trip X says:

    I went to the website and lo and behold my former bank wasn’t there: Citizens Bank. they did that same shyte, only this is how they explained it to me: At midnight, we (the bank) take your balance, and to it the deposits made during the day, and then, starting from the highest debit, to the lowest debit, make payments. Their reasoning, we want to make sure your highest bills (mortgage, car payments) are made first, since they are important. BUT THEY PAID EVERY BILL! whether it gave me an increasingly negative amount or not. So it didn’t matter what one was paid first, they all got paid, and each time my account was accessed while in the red zone, another $37 was exacted on top of my inability to pay. One month, it took me three weeks of paychecks to get a positive balance. Good thing I had another account (same bank) that had $$ in it that was untouchable by the first account. It was a business account that is associated with my lawn service. We lived off that account for 3 weeks for food, gas, etc.
    Here’s the clincher: when my account was in the red zone just last year, and my second mortgage was late (4 months), the bank (good ole citizens) placed a hold on the funds and even the branch manager didn’t know why. They held the interest payment hostage as payment (as if they haven’t gotten enough of my money). On the following Tuesday, it finally showed on line what it was for, and I was hopping mad! I pulled every last dime from my personal account and moved it into the credit union. They’ll never touch my $$ without my permission again. Oh, the hostage money, put me deeper in the red; another two weeks trying to make it zero again. My business stays there because of the hassle involved with changing banks when one is registered with the US Gov’t as a veteran owned business eligible for gov’t contracts.

    Leese, I feel your pain. They caused this climate (housing bubble, etc.) and now instead of them paying for their wrong-doings; we once again are forced to BOHICA (Bend Over Here It Comes Again).

  5. Leese says:

    OMG Trip .. I can give you example by example..!!

    One time they were charging me 700+ in over draft fees FROM ONE WEEKEND .. I got my Italian ass down there first thing on Tuesday morning and confronted the bank manager.. I asked him WHY they would allow charges to go thru when there wasn’t enough money for the purchase.

    He said that they did it as a .. get ready for this.. CONVENIENCE to their customers. I was all up in his grill explaining that CONVENIENCE is FREE and not 35.00 a pop and I wanted those fees over turned.. especially because I had a statement stuck in my car ashtray from the Saturday before showing what their ATM showed as my balance.

    He did over turn them …

    Then there’s the time when they accused me of writing bad checks.. shut my shit down.. and after it all got straightened out, they didn’t want me as a customer anymore. Because my work checks were direct deposited.. they continued to TAKE my money but wouldn’t allow me to withdraw it ..

    Im with TD now.. THANK GOD!!!!!

    But everything I was reading about this case said that the HIGH / LOW way of processing is a bank standard.. most banks do it that way.. and your right.. they’re paying it anyway so what the hells the difference?

    The difference, my friend, is the 208 billion dollars of overdarft fees they generate by doing it that way.


    To the mattresses… !!!

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