CALIFORNIA -- Thank you for your concerns regarding Wells Fargo customers. I am submitting this complaint against Wells Fargo Bank.
I wrote a check of $330.04 and clearly indicated its date as 02/28/2007. My account was in a position to cover it only at the posted date, but Wells Fargo honored the check on 02/12/2007, two weeks earlier than the posted date. This resulted in my account to be charged $141.00 in a period of 4 days. It is my impression that Wells Fargo upon being represented a check either automatically or as hard copy has to verify the amount, date, and name it is written to. I believe these are some of the red flags that have to reviewed in fighting fraud. The Wells Fargo response below shows that its automated means that it relies on does not capture a check dated year 2005 or 2007 even if we are in March 2005; thus putting customers at greater risks.
Below is the Well Fargo Bank Response:
Thank you for your inquiry regarding the processing of post-dated or stale-dated checks. In general, banks process checks by automated means, relying upon check information contained in magnetically encoded information found at the bottom of the check - MICR. The check date is not part of the MICR encoded information. As a result, a bank will pay or return a check without regard to the date written on the check.
As discussed in the Consumer Account Agreement, a "stop payment order" is used if you do not want a check paid or to give the bank notice of a post-dated check. To be effective, a stop payment order must be received by the bank in a time and manner that gives the bank a reasonable opportunity to act on it. A stop payment order is valid for six 6 months and must be renewed if you do not want the stop payment order to expire. Each renewal will be treated as a new stop payment order. For post-dated checks, it is your obligation to remove the stop-payment order once the check is no longer post-dated. The normal Stop Payment Fee will apply to each order.