Hero judge bounces check fees http://www.detnews.com/article/20100816/OPINION03/8160307/Hero-judge-bounces-check-fees
A California judge is my new personal hero. Not the wise and fair-minded U.S. District Judge Vaughn R. Walker, who overturned the state's odious gay marriage ban -- he's last week's hero. Now it's the wise and fair-minded -- and obviously infuriated -- U.S. District Judge William Alsup who on Tuesday ordered Wells Fargo & Co. to pay back $203 million in sleazy overdraft fees to bank customers. The judge called the bank's manipulation of account balances to create extra overdraft fees "gouging and profiteering." His decision found the bank's policy existed only to "squeeze as much as possible" from its customers. I couldn't have said it better myself. But that's only because my editor won't let me use the phrase "#$@&! &%...@*! pond-scum." Advertisement Detroit: Get Out of Debt Now The Bankers Don't Want You to Know About THIS Debt Relief Secret! Detroit: Mom Discovers $5 Wrinkle Trick Dermatologists DON'T want you knowing about this Skin Care Secret! TODAY: iPads for $123.74? Alert: iPads are being auctioned on SwipeBids for 95% off today. ®Debt Stimulus Relief ®New Laws Allow You To Remove Up To 75% Of Your Debt.… Obscured policy But I can use the phrase "lying putrid weasels," which applies to any banker defending the widespread, grubby practices most banks apply to clearing checks and handling overdrafts. In the case of Wells Fargo, the bank introduced and obscured a policy of clearing all checks, debits and debit-card purchases in the order of largest amount to smallest, rather than in chronological order or by check number. Most banks do this, "to better serve the customer," although any time I've asked them to prove it, they haven't produced a shred of research to back up their claims. What can be proven -- and was in California -- is that clearing the largest transactions first is guaranteed to create more $35 insufficient funds charges if an account has several overdrafts in one day. Worse, those high fees often were part of sneaky "courtesy" overdraft protection plans whose terms were buried in the fine print of account agreements. Besides costing more than other overdraft options, they also allowed -- and charged -- overdrafts on debit cards. All I can say is that Wells Fargo managers are lucky California doesn't have chain gangs. Opt out now Judge Alsup's decision is timely, since today is the first day bank customers have a little protection. Thanks to new federal rules, your bank now cannot process overdrafts (and charge you for the privilege) on most of your debit or ATM card transactions unless you specifically opt in for the service. Some banks have even gone so far as mounting campaigns to scare customers into opting in, using names like "account protection" and describing it as a "free" service. Which it is -- until you use it. If you haven't opted out, call your bank and do so. Chances are it offers cheaper and better overdraft coverage if you need it. Meanwhile, here's to Judge Alsup, my new hero. Why, if I was a single guy, I'd move to California and marry that man. bocon...@detnews.com (313) 222-2145 From The Detroit News: http://www.detnews.com/article/20100816/OPINION03/8160307/Hero-judge-bounces-check-fees#ixzz0wmtxmMyc _______________________________________________ Marxism-Thaxis mailing list Marxism-Thaxis@lists.econ.utah.edu To change your options or unsubscribe go to: http://lists.econ.utah.edu/mailman/listinfo/marxism-thaxis
