• Consumer Protection Law and Advocacy — Chicago, IL

Overdraft Fees Verdict Upheld By Supreme Court

On Monday, the United States Supreme Court rejected Wells Fargo’s efforts to overturn a $203 million verdict regarding overdraft fees.

Originally, Wells Fargo was charged with violating a California consumer protection law because it “stacked” customer bank transactions.  In a nutshell, Wells Fargo processed larger bank customer transactions first to maximize overdraft fees.  If, for example, a consumer wrote checks for $600.00, $125.00, $40.00, and $25.00, Wells Fargo would process the larger transactions first, rather than arrange them in the order they were written.  This led to additional overdraft fees and other penalties because a customer’s larger transactions were posted before the smaller ones.

“Nearly six years after a federal court ordered Wells Fargo to pay $203 million in refunds to customers victimized by the bank’s overdraft policies — and after years of bouncing back and forth through the appeals process — the U.S. Supreme Court has decided to let that judgment stand.” https://consumerist.com/2016/04/04/wells-fargo-must-pay-203m-to-customers-after-supreme-court-rejection/

This was one of two decisions issued on April 4, 2016 by the Supreme Court relating to class actions. Wal-Mart Stores, Inc.’s bid to defeat more than a $150 million class action judgment for Pennsylvania workers was also rejected.  The justices declined to hear Wal-Mart’s appeal, leaving in place a 2014 ruling by the Pennsylvania Supreme Court that largely upheld a judgment awarding $187 million to the plaintiffs.

Both reflect relatively positive news for consumers generally and we will continue to monitor the class action developments from this divided Court.

StacyBardo
AUTHOR

StacyBardo

Stacy M. Bardo is a seasoned litigator, with 15 years of experience prosecuting consumer cases in state and federal court. Stacy founded Bardo Law, P.C. to provide effective, zealous legal representation to consumers, while maintaining empathy and compassion for her clients.

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