SAN FRANCISCO--(BUSINESS WIRE)--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