Consumer complaint received 2021-09-13 00:00:00
Product: Checking or savings account — Checking account
Issue: Managing an account — Deposits and withdrawals
Company: WELLS FARGO & COMPANY
State: CA

Complaint narrative:
My son and I work for the same company so get paid on the same days via the same means. On Friday, XX/XX/XXXX of 2021, I had my son deposit my paycheck into our Wells Fargo account and had him cash his paycheck then deposit the cash. It brought our account up from a recent overdraft that occurred as a result of a recent work-related injury and loss of revenue. 

I expected that a portion of my paycheck would be held for a few days, which is customary for a deposit drawing off another bank. I was informed, however, via the online banking portal that the hold wouldn't simply be for a few days but that a sum of {$970.00} being held of my paycheck would not become available until the XXXX of XXXX. 

At around XXXX am Monday, the XXXX, I called Wells Fargo corporate to inquire as to the reason why the bulk of my paycheck was going to be held for such a duration. XXXX, seeming surprised herself, informed me that my paycheck was being held because I had several overdrafts against the account prior. Understandably, it does happen more often than I'd like due to online recurring subscriptions hitting the account but those are always accompanied by {$35.00} overdraft fees that are effectively free money given to Wells Fargo for the privilege of having petty things covered for a time. Regardless, the reason that XXXX gave me was that, due to my careless banking, my funds were being held much longer than would seem necessary. 

I promptly requested to have the hold lifted today, which prompted an escalation of the issue to a higher-up, XXXX. When inquiring about the hold, she insisted that the hold was customary due to it being drawn from another bank and that this typically doesn't exceed XXXX business days. Running the math and excluding weekends and the day of deposit, I still arrive at funds availability on the XXXX of XXXX, not the XXXX as Wells Fargo 's system states. I'm inclined at this point to believe the initial reason for the hold, that it's simply a punishment for overdrafting ( wherein each instance gains its own punishment ). 

I further questioned XXXX regarding the policy XXXX referred to that essentially punishes customers who overdraft, itself coming with the punishment of a {$35.00} fee, by hijacking their income. I was told that this is all very legal, though I'm personally finding it rather shady as a banking policy and missing in Wells Fargo ToS. 

XXXX further informed me that the deposited check had, indeed, cleared but that Wells Fargo was just waiting on the funds from XXXX Bank, though she was adamant in that the hold would not be lifted no earlier than the XXXX regardless whether or not the transaction occurs. 

I inquired how someone who has maintained a particular account for over a year despite several overdrafts could be in poor standing with the bank if their account is positive most of the time and actively brought back into the positive each time it overdrafts. There was no response to that inquiry. I agreed that my account may seem insignificant in only moving a few thousand dollars through it on a monthly basis but that it all adds up in the end. I'm left to wonder how many tens of thousands of customers end up in a similar situation, having their income hijacked for what seems to me to be a very trivial issue. 

As of this moment, my account has been put to - {$10.00} after an online recurring subscription even though nearly {$1000.00} sits on hold. I expect I will be hit with yet another {$35.00} overdraft fee at this point due to this pointless hold. That, right there, is what I believe to be very much illegal and fully taking advantage of customers who are not so financially well-off.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with monetary relief