WASHINGTON – Wells Fargo Bank has continued to refund overdraft fees to customers following its loss in a class-action lawsuit.
Reports indicate that the bank started issuing paper checks to those involved in the lawsuit last month.
“As a result of the Gutierrez v. Wells Fargo lawsuit, we are currently refunding overdraft fees to California customers included in the class as required by the court’s ruling, which covers a time period from 2004-2008. Those customers whose accounts remain open began to receive deposits to their accounts earlier this year, and those whose accounts have closed will receive checks at the mailing address on file,” Wells Fargo spokesperson Kris Dahl wrote in an emailed statement.
The bank reported a $5.6 billion quarterly net income last month and Dahl said the estimated $203 million it will cost them to pay back the overdraft charges would not affect its financial position.
“It is worth noting that the communications and practices challenged in this litigation ended some years ago, so the ruling in this case has no impact on the bank’s current operations.”
The class-action lawsuit was originally filed in November 2007, media reports indicate. Plaintiff Veronica Gutierrez accused the bank of violating state law in the way it handled debit card transactions.
The settlement covers a time period from 2004 to 2008, Dahl said.
Since the court case, Dahl said the bank had modified its debit card posting practices.
“Specifically, debit card transactions are now posted based on the date and time the customer initiates the transaction. If more than one transaction has the same date and time, the bank will look at the dollar size of the transaction and post them from lowest-to-highest amount.”
Dahl said that customers who have questions should contact the court-appointed class administrator at 877-651-4199.
The U.S. Supreme Court denied the bank’s appeal in April.