In a landmark ruling, a California judge has ordered Wells Fargo (WFC) to pay more than $200 million in restitution to California customers as a penalty for manipulating bank fees.
The judge is quoted as saying that "The revenue generated from these fees has been massive."
Meanwhile, Paul Miller, an analyst for FBR Capital Markets, corroborated the judges ruling by stating that Wells Fargo's handling of the overdraft fees was "always a questionable practice" that has been "going on for years."
The $200 million fine to Wells Fargo is only a fraction of the $1.8 billion in overdraft fees the bank collected in CA during the three-year period from 2005 to 2007. And, it does not affect monies charged in other states.
The best alternative to paying overdraft fees remains to switch to a bank that does not charge overdraft fees.
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