Can Wells Fargo do this to a loyal customer of 10 years with free checking?

Question

I bank with Wells Fargo and have for over 10 years.  I have a checking account (free) that is 11 years old, a mortgage with them for the last 7 years, a credit card.  My wife has a checking account, credit card, and savings account, and is on the mortgage.  We don't do joint checking, easier that way.

Well, my ATM card expires in May (only reason I come up for this D-day).

I have been accosted twice in the last two months when I go into the bank (two separate branches).  Here is what they tell me:

1) my account is flagged because it is a "grandfathered free checking account"
2) come May 1 there will be serious changes they want to tell me about 
3) that May 1 they will open a savings account for me, that bears no interest
4) that they will automatically withdraw $25 a month from my checking account into this savings account
5) that if I do not have the $25, they will overdraft me and hit me with fees
6) to avoid this I can set up automatic deposits or close my account
7) the reason for this is the "economic situation" and "federal regulations" that made them "lose fees" and they have to "make up the difference" that they are mad too because good people have to pick up the fees that otherwise would be paid by slackers because of the new federal laws (I know, a bunch of garbage, the real problem was the deregulation of the banks in the first place)

So, my questions
1) CAN they really force me to open a new account, withdraw money from my existing account without my permission or signature?
2) or is this some scam to make me open new accounts because my "grandfathered free checking" really is safe and it is all lies?

I have not received ANYTHING in writing, and when I emailed the bank with online banking they said they were clueless.

They said my mortgage cannot save my free checking because my wife has free checking because of the mortgage (has automatic mortgage payments from that account) and we both cannot benefit from the same mortgage account.

I am super mad, and will probably just close my account anyway, but how can this intimidation and practice be legal?  

Shame on Wells Fargo and all other banks taking these measures and attacking loyal customers who have never gone over in their account, never been late with any payments, and loyally done all their banking with you?

MKD · Accepted Answer

Get rid of Wells Fargo.  They suck big time.  Wells Fargo has made record profits, so claiming that the economic situation and federal regulations has put a big damper on their profits is crazy.  Why then are the top guys being paid big bonuses?  Wells Fargo will f you over.  Better be careful with your mortgage and keep a good eye on your balance. They like to take peoples houses even if they paid on time.

Tabitha · Answer

Overreacting would be closing all accounts and abandoning the house in revenge wahahahahaha (don't do it LOL)

Simply ranting and planning on changing banks is a very reasonable reaction.  I like small community banks, but sadly they just end up getting bought out by the giants.

And yeah, who leaves thousands in a checking account unless it is an interest bearing checking account? (what I have - literally the bank pays me to bank with them -we'll see how much longer that lasts too with our "economic situation" but I should be good until 2012 when my ATM card expires and they can modify my account)

Oh, and the papers say just the opposite...that the free checking won't impact old customers...we all know that is not true as you are a prime example.  Maybe set the story straight with the comments on the articles!  It should be "this does not impact existing customers unless their account is up for review, in which case we do what we want"

More examples of their lies, they tell the press it won't impacts "grandfathered free checking" customers, but they hold you over the hot plate in direct contradiction!  Bad business.

YES they are under the same contract as you.  Sure they have more give, very one-sided contract, but they still have to live by their own rules.  To modify their account (they sure can) they have to inform you in writing of the "changes in terms and conditions".  Also know they can and will cancel any account at any time for any reason (many years ago WF canceled my credit card -which had a small balance- because I got mad at them for all the telemarketing calls and they literally told me they closed the account because I asked them to stop calling me!)

So switch to small banks or credit unions.  Everyone should! They are a business and the best way to get back at a business is to stop doing business with them!  Word of mouth, like what you are doing, is great too.  Warn others, let them know so they can avoid the same trap....

Anonymous · Answer

I agree that you are over reacting.  If you are mad, just close the account and move on.  It's just a banking account.  Try a credit union.  If everyone did, most of the commercial banks would be out of business.

That said, your rant doesn't make much sense to me.  It is relatively easy for anyone with basic money management skills to get and keep free checking at a major bank.  Basically, all it takes is couple of grand.

The bit you might be missing is that a bank is a business and every service it offers costs money.  If you, the customer, are not generating income above those costs continuously, they are loosing money having you as a customer.  It makes perfect sense for banks to get rid of customers like that and that is exactly what they do.

Banking deregulation or not, a bank is a business and its a free country.  No one can force anyone to do anything forever without any changes...except the IRS and homeland security.

;-)

Anonymous · Answer

Sorry, but Wells Fargo can't check everyone's account personally. So if it took you 12 years to notice that they were charging you $10/month, then that's your own fault. Its stated in the disclosures that it is your responsibility to contact them if there are any discrepancies on your account. And 12 years is way too long, they will reverse fees going back that far.

Answers4u · Answer

With sufficient notice, banks can usually do whatever they want.  I recommend looking at credit unions in your area and going there since they usually still offer free checking.

If you are concerned, contact the corporate division of the bank and talk to someone there - the branch might be messing with you to get new accounts and you should let someone know.

Also, ask next time for it in writing and if they refuse, tell them you will take your business elsewhere and sue if they move your money without your permission.  It must be in writing to be legal.

Blunt · Answer

Can they? Yes, or else pay the fees.

Should they? No, but WF was hit hard with the Housing melt down and overall all banks have suffered, so they have to get income from somewhere. Bank of America is another one that is doing the same.

Close your account and open one with a local credit union, those will welcome your business and they still have free checking.

I'm sorry.

? · Answer

1 year, 10 years, 100 years is irrelevant. They CAN do it....and you are REALLY over reacting. 
The new limits on overdraft fees are costing banks a ton of money, and it needs to be made up someplace. You are not "entitled" to a free checking account. A bank is a business, not a charity.

exactduke · Answer

The financial crises of 2007 - 2009 & new regulations & laws passed by congress changed everything.  If you don't like these - change banks.  Problem solved.

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Can Wells Fargo do this to a loyal customer of 10 years with free checking?

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