General Credit Topics

[SanFranMatt]

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tjmmp56 wrote:

The entity to sue for the overdraft fees and penalites isn't WF.  It would be the insurance company that continued to withdraw premiums when they were no longer authorized to causing the account to be overdrawn.  When the funds were refunded from the insurance company the ovedraft fees and penalties should've been included with that.  Wells Fargo furnished the account and OP agreed to certain account terms, which included od fees and penalties.  Now I'm not saying the amount of fees are legit, but WF wouldn't be the party to take to court.  And regardless, it's better to pay it now and fight about it later.  Cleaning up credit is not easy task. 

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I agree.  Just because the banks are in the process of settling a suit on overdraft fees, it doesn't mean you can skip on the bills and take them to small claims court while keeping your credit in tact.  To me, the best option is to find the money somehow and pay before it shows up on your credit report.

How much are we talking about here?  Is it in the hundreds?  Thousands?

[pipeguy]

You are assuming that the WF charges are valid, there has been no accounting as of yet. Banks systemically bled customers for over drafts and then added penalties, that's the basis for these suits against the banks and was a main point of the financial reform act (Dodd).

I watched my elderly father-in-law get hit with over $900 in overdraft fees when a single check he deposited bounced (NSF), all within a 2 week period. The bank was fully away that his fixed income pension was deposited on the first of every month, as it had been for many years, but they rearranged his payments (largest first, etc) so that over drafts and fees would pile up for a week before they even notified him that a check he had deposited was NSF. My 18 year old son (at the time) would over draw his account by $2-$3 at 7-11 buying lunch, by the time "the bank" got through, he'd get hit with over $100 in fees.

Any bank can waive these fees and to send them to collection 2 years later, come on. The point of the posts about the major banks settling lawsuits over their abusive behavior concerning over drafts and fees, is a point that CAN BE used to leverage back against this bogus collection. Frankly I can't even believe that a bank would send this claim to a collection agency in the first place.

Is it easier to "settle" without a fight, yeah perhaps but in this case you are letting the "bank" Mod Cut you twice.  

[tjmmp56]

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pipeguy wrote:

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I disagree due to #1 WF is the one charging the over draft fees (probably excessive) and CAN waive these fees. #2 WF is the one attempting to collect on 2 year old overdraft fees (whether justified or not).

I'm saying that just because WF/CA says something with the assumed threat that it will show up on ones credit report is NOT enough reason for ME to pay the claim. I think the OP has a very good case of making this go away Perhaps the bank and CA are expecting the OP not to fight the claim, I'm saying fight (but that's just me). 

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Excessive or not, OP was given an account with WF with those terms and accepted them.  WF didn't overdraft the account. The insurance company did.  Credit card companies can also waive excessive over the limit fees or late fees, doesn't mean you can sue them if they don't.  The fees are owed to WF (the amount may very well be in dispute) and WF has the right to try and collect those fees for as long as the fees are owed.  Whether that's 2 years or 10 years.  Obviously after a certain amount of time you can tell them to kick rocks, but that doesn't me you don't owe that debt, just means your are no longer legally obligated to satisfy it.  I'm not saying don't fight, but the only thing here to fight is perhaps the AMOUNT of the fees and penalties, and an accounting of them should be obtained.  And I'm not saying WF is necessarily in the the right here, but it's a little hard to make a case when you agreed to the terms to begin with, there are account agreements which are binding contracts.  The insurance company caused the fees and penalties to accrue.  Recourse for that is to go after the insurance company after determing the amount of fees to pursue. 

[SanFranMatt]

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pipeguy wrote:

You are assuming that the WF charges are valid,

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There's no reason to think they're not valid.  The original post indicated that it was an account that wasn't being used anymore, and there was a monthly insurance payment that was charged to the account.  It's not a matter of the bank changing the order of transactions in order to maximize penalties.  It's a matter of having no money in an account, then having monthly payments taken out of it.

If the goal is to pay as little as possible, then it might be worthwhile to fight it - or at least ask if they're willing to settle for a % of the balance.  But since the OP is in a situation where they won't report to the CRA if it's paid within a month, then I think it makes sense to pay it and keep your credit in tact.

[pipeguy]

Read the Original Post, the CA did not say they would report the "debt" to the CRA's, although I assume they can. I'm just saying to get an accounting or "DV" per se, then use leverage to settle the debt because the source of this "debt" is questionable in its' amount or value. I would never take a CA/JDB statement of fact as true without proper media (documentation).

Anyway, no need to go around and around but I would fight it..... we'll agree to disagree.

[zedekc]

I called them, and they said that Wells fargo, or its collections agents dont report these kinds of debt to the CRA's they only report to chexsystems, and even if i didnt pay I was in no danger of being reported to the CRA's.  He said if i paid that I would be taken off the chexsystem blacklist, and would be able to open up a checking account again.  I just paid it incase he was dumb or lying because I didnt want to be reported.

[AndySoCal]

I think you made the right decison. If possible try to get re-imbursed fom the insurance company that created the problem in the firstplace.  This post and several accounts remind me why I will never have over draft protection.