Consumer Retorts: Wachovia

Why is my bank hitting me with multiple overdraft fees?

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CONSUMER RETORTS

Consumer Retorts

Wachovia

AMERICANS GET slapped with $17.5 billion a year in overdraft fees. That’s partly because 8 of the country’s 10 biggest banks process customers’ daily charges—checks, withdrawals, debits—not in the order they’re made, but from the largest to smallest amount. So if you overdraw with your rent check, any smaller purchases you made earlier in the day will be processed afterward, resulting in multiple overdraft fees. Mother Jones reader James Gordon of Haworth, New Jersey, asked us to look into this “intentional thievery.” We called his bank, Wachovia, where a customer service rep guessed that this was “to get more money out of customers maybe?” Not so, explained corporate communications manager Eileen Leveckis: “Our research has shown that customers prefer us to pay the higher-amount bills such as mortgage, car payments—the really important bills that will impact credit.” Maybe she didn’t get the memo. According to an internal document obtained by USA Today, last year Wachovia told employees that overdraft charges “make up a big percentage of our revenue and is [sic] a HOT button among leadership.”

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DEMOCRACY DOES NOT EXIST...

without free and fair elections, a vigorous free press, and engaged citizens to reclaim power from those who abuse it.

In this election year unlike any other—against a backdrop of a pandemic, an economic crisis, racial reckoning, and so much daily bluster—Mother Jones' journalism is driven by one simple question: Will America move closer to, or further from, justice and equity in the years to come?

If you're able to, please join us in this mission with a donation today. Our reporting right now is focused on voting rights and election security, corruption, disinformation, racial and gender equity, and the climate crisis. We can’t do it without the support of readers like you, and we need to give it everything we've got between now and November. Thank you.

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