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Wells Fargo doesn't have to pay clients $203 million - court

Dec 27 2012 Reuters

A U.S. appeals court vacated an injunction and a $203 million restitution order against Wells Fargo & Co in consumer litigation over the bank's overdraft policies, according to a ruling issued on Wednesday. But the 9th U.S. Circuit Court of Appeals in San Francisco also found Wells had violated part of California's unfair competition law, and sent the case back to trial court in San Francisco to determine what relief is appropriate. A spokesman for the bank, Ancel Martinez, said Wells was pleased with the decision. Plaintiff attorney Michael Sobol said he was confident the damages could be reinstated by the lower court judge. "The misrepresentations found by the district court have been affirmed," Sobol said. Wells Fargo, prior to April 2001, posted customer debit card purchases to their bank accounts in order of lowest charge to highest, which minimized the number of overdrafts, according to the ruling. But beginning in April 2001, the bank began posting debit card purchase

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