The hits keep on coming for the largest bank in America: in addition to stealing millions with fraudulent overdraft fees, creating 2,000,000 fraudulent accounts, blackballing whistleblowers, defrauding mortgage borrowers, and stealing tens of thousands of cars with fraudulent repos, they also grossly overcharged America's struggling small businesses for processing their credit-card fees, according to a new lawsuit.
A class action filed in New York by a Pennsylvania court says that Wells Fargo gave merchants an agreement based on "voluminous legalese that could not possibly be read in its entirety or understood by merchant customers," with "absurd provisions" that allowed the bank to charge any fees it chose to levy.
For example, the suit claims that the Program Guide included language that dictated Wells Fargo could “increase our fees and add new fees for services for any other reason at any time, by notifying you thirty days prior to the effective date of any such change or addition.”
“Boiled down to its core, this provision purports to give Merchant Services unlimited discretion to charge whatever it wants even if such fees and rates are vastly different and higher than those that are clearly set forth in the application,” the suit states.
Because of this provision, Wells Fargo was able to charge companies for a range of fees that had not previously been disclosed, included minimum transactions fees and early termination penalties, the plaintiffs contend.
Wells Fargo Accused Of Overcharging Small Businesses [Ashlee Kieler/Consumerist]
(Image: Smash the Iron Cage
Yesterday, I published a brief analysis of Elizabeth Warren's plan to close the loopholes that allows private equity to defraud investors, creditors and workers to make billions while destroying the real economy.
Elizabeth Warren's bid for the Democratic 2020 presidential nomination has been dominated by a series of bold, detailed policy proposals that are designed to enact deep, structural changes in American law and policy to reverse 40 years of post-Reagan corruption and wealth accumulation by the richest 1%.
Public companies are legally required to disclose their risks to investors, but it's a rare company that incorporates climate change into those mandatory disclosures; under a new presidential campaign platform proposal from Elizabeth Warren (disclosure: I am a donor to both Warren and Sanders's campaigns), the SEC would require public companies to incorporate two kinds […]
When it comes to data analytics or deep learning, there’s one language behind the apps and algorithms that power the biggest companies of today: Python. The best part about this tool is that as versatile as it is, it’s actually fairly easy to learn. But mastery? For that, you need more than just a beginners’ […]
Your smartphone’s GPS is a modern necessity for some trips, but how do you use it safely? It’s been a problem ever since phones went mobile. A certain phone mount even shelled out the money for a commercial during the Big Game, so clearly there’s a market for the solution. Turns out there are a […]
There’s reading for pleasure, and then there’s reading for fuel; absorbing the great ideas in nonfiction books so you can apply them in your own life. In today’s hectic pace, it can be difficult to find the time to do that reading – especially for the entrepreneurs and professionals who can benefit the most from […]