Anyway, let me show you what Wells Fargo has to say about "What is the fee for using Overdraft Protection" (and I use my credit card, so I will only show that portion):
When there are insufficient funds in your account to cover a check, withdrawal, or automatic payment that you have authorized, and you have Overdraft Protection, we pay the Item and charge you an overdraft protection transfer/advance fee.In my situation, I was short about $12 and had plenty of credit. How much should I have been charged?
One overdraft protection advance fee will be assessed each day your credit card provides Overdraft Protection, regardless of the number of items that post to the account. The fee is dependent on the total amount of the advance:
We will transfer the exact dollar amount to cover the overdraft, subject to a minimum Overdraft Protection advance amount of $25.00. If the amount of available credit on your Card is less than $25.00, we will transfer the amount of the available credit.
- $10 if the total of Overdraft Protection advances for the day is less than $25.00.
- $12.50 if the total of Overdraft Protection advances for the day is $25.01 - $100.00.
- $15.00 if the total of Overdraft Protection advances for the day is $100.01 - $500.00.
- $20.00 if the total of Overdraft Protection advances for the day is more than $500.00.
Now guess how much I was actually charged?
Wells Fargo charged me $10.28. What Wells Fargo never told me about overdraft protection is that they charge me interest when they loan me my own credit and that interest starts accumulating immediately. What a scam! If I pay with my credit card directly, I do not have to pay interest for about 30 days. Since I did not pay off any of my credit card charges until the normal due date about 14 days later, I accumulated 28 cents interest on the $10 that I owed Wells Fargo.
No one at Wells Fargo never told me about this. All they ever say about overdraft protection is "it is a free service that will only cost you a once-a-day fee when you use it". Then, if you read this amazing story, you will start to think that the workings of overdraft protection are a secret even to Wells Fargo (or at least those that interact with customers).