Arrow-right Camera

The Spokesman-Review Newspaper The Spokesman-Review

Thursday, May 28, 2020  Spokane, Washington  Est. May 19, 1883
Clear Day 81° Clear
News >  Business

Supreme Court rejects Wells Fargo appeal of verdict on overdraft fees

By David G. Savage Tribune News Service

WASHINGTON – The Supreme Court on Monday let stand a $203 million verdict in favor of Californians who were repeatedly charged overdraft fees by Wells Fargo Bank a decade ago.

The justices turned down the bank’s final appeal, in which Wells Fargo contended the class-action verdict was not justified.

Lawyers sued on behalf of Wells Fargo customers who used a debit card and said they were misled by the bank’s policy on overdrafts.

A federal judge in San Francisco ruled in 2010 that Wells Fargo had sought to “maximize the number of overdrafts” by subtracting the highest charges first on the debit card, followed by the lower charges. When the account was overdrawn, this so-called “high to low” policy had the effect of multiplying the number of overdrafts, each of which carried a $25 to $35 fee.

The judge said the bank had deceived its customers in violation of California’s consumer protection law, and he awarded $203 million in restitution to those who were charged for overdrafts between 2004 and 2008.

Since then, lawyers for Wells Fargo have been appealing in the federal courts, including twice to the 9th Circuit Court of Appeals.

In its appeal to the Supreme Court, the bank argued there was no proof that the debit card users had ever read or relied upon the bank’s written policies, which were found to be deceptive. In upholding the verdict, the 9th Circuit said the California law protects consumers who have been hurt by a company’s deception, regardless of whether they read its disclosures.

The justices on Monday said they would not hear the appeal in Wells Fargo v. Gutierrez.

Subscribe to the Coronavirus newsletter

Get the day’s latest Coronavirus news delivered to your inbox by subscribing to our newsletter.

Asking the right questions of your CBD company

Bluegrass Hemp Oil in Spokane Valley offers a variety of products that can be very effective for helping with some health conditions. (Courtesy BHO)

If you are like most CBD (cannabidiol) curious consumers, you’ve heard CBD can help with many ailments.