Wells Fargo, no longer creating fake accounts, now making profits from overdraft fees

Wells Fargo’s income from overdraft charges grew by 7.5 percent in the third quarter of 2016. Compared to its national bank peers, that rate is more than 5 times the average and, ultimately, likely to be a point of concern for consumer banking regulators who have vowed to set new rules on overdrafts in the second half of 2017.

According to the Financial Times, the other top overdraft fee-earners in the country (JPMorgan Chase, Bank of America, TD Bank and US Bank) averaged a 1.3 percent increase in overdraft-related income.

Each of the five banks maintain a policy to charge a one-time overdraft fee of $34 to $36 on accounts that drop below a $0 balance.

Wells Fargo associated its third-quarter rise in overdraft income to the growing number of customers that are using their accounts for debit card purchases and online bill payments.

Read on.

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