Wells Fargo’s Overdraft RewindSM to Help Customers Stretch Paychecks, Avoid Fees
November 14 2017 - 9:00AM
Business Wire
Automatic feature “rewinds” overdrafts when a
covering direct deposit is received the next morning; Bank also
eliminates overdraft fees for transactions of $5 or less
Wells Fargo & Company (NYSE: WFC) announced today that it
has introduced a new feature that will automatically “rewind”
overdrafts that are assessed on customers’ accounts at a vulnerable
time – specifically the day before their payday direct deposit is
received, when their account balances may be low. With the new
“Overdraft Rewind” feature, the bank will not charge overdraft or
insufficient funds fees if a covering direct deposit is received
the morning after their account is overdrawn. Customers do not need
to take any action to receive the new benefit, automatically
providing a better banking experience for millions of customers
nationwide.
“We’re always looking for new and better ways to help our
customers manage their accounts, and many customers have told us
that they are frustrated by unexpected overdrafts the day before
their next paycheck is direct deposited into their account,” said
Ed Kadletz, head of Wells Fargo’s Deposit Products Group. “By
looking back at a customer’s prior-day transactions when a direct
deposit is received by 9 a.m. local time, we’re now able to
effectively ‘rewind’ any overdrafts from the previous business day
that are covered by that deposit, helping our customers to avoid
overdraft fees and bridge the occasional gap between
paychecks.”
Wells Fargo also announced today that it will no longer charge
overdraft fees for any transaction of $5 or less, further helping
customers avoid unexpected fees when their account balances are
low. This new per-transaction threshold complements the bank’s
existing policy of not charging an overdraft fee if a customer’s
available balance and ending account balance is overdrawn by $5 or
less and no items are returned for non-sufficient funds at the end
of nightly processing. It is intended to help customers avoid
additional overdraft fees for small transactions conducted after an
account is initially overdrawn.
In June, Wells Fargo also introduced an alert that will
automatically notify its Online Banking customers by email if their
account balances drop to zero or less. The automatic alert, which
customers can choose not to receive, expands on the wide variety of
optional text and email alerts Wells Fargo has offered for a number
of years. On average, Wells Fargo sends out more than 1 million
zero and low-balance alerts during the day, giving its 21 million
Online Banking customers a chance to avoid an overdraft fee by
making a deposit or transferring funds from another account.
The recently introduced overdraft improvements support Wells
Fargo’s commitment to help customers improve their financial health
– a challenge for many Americans today. Research shows that 57
percent of Americans are struggling financially1, and 44 percent
say they would not be able to cover a $400 emergency expense
without selling something or borrowing money2. To help more
Americans feel more stable and prepared for life’s opportunities
and challenges, Wells Fargo is providing a growing set of services
that make it easier for customers to know where they stand, and
make the right financial decisions based on their specific needs
and goals.
How Wells Fargo Supports Financial Health
Wells Fargo seeks to provide its customers the personalized,
proactive guidance and convenient financial resources they need to
support their financial health. These include providing 68 million
customers free access to their FICO® Credit Score, and a Financial
Health Conversations program that has provided personalized plans
for more than 23,000 customers since the start of 2015. For Wells
Fargo’s easy-to-follow financial health guidelines and online
tools, see One Little ThingSM, a financial health resource.
About Wells Fargo
Wells Fargo & Company (NYSE: WFC) is a diversified,
community-based financial services company with $1.9 trillion in
assets. Wells Fargo’s vision is to satisfy our customers’ financial
needs and help them succeed financially. Founded in 1852 and
headquartered in San Francisco, Wells Fargo provides banking,
insurance, investments, mortgage, and consumer and commercial
finance through more than 8,400 locations, 13,000 ATMs, the
internet (wellsfargo.com) and mobile banking, and has offices in 42
countries and territories to support customers who conduct business
in the global economy. With approximately 268,000 team members,
Wells Fargo serves one in three households in the United States.
Wells Fargo & Company was ranked No. 25 on Fortune’s 2017
rankings of America’s largest corporations. News, insights and
perspectives from Wells Fargo are also available at Wells Fargo
Stories.
1 Center for Financial Services Innovation, Understanding and
Improving Consumer Financial Health in America , March 2015
2 Board of Governors of the Federal Reserve System, Report on
the Economic Well-Being of U.S. Households in 2016 , May 2017
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MediaKris Dahl,
612-667-7271kristopher.a.dahl@wellsfargo.comorInvestor
RelationsJohn Campbell,
415-396-0523john.m.campbell@wellsfargo.com
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