Wells fargo bank account got closed, will this affect my credit?

Question

I had a wells fargo account for over a year and then i got swamped with OverDraft fees because a check didnt go through till three days later. So they took about 30 dollars off of 10 overdraft fees. Some things were like .50 cents and i would get fees of 30 dollars! it was a joke. So It was a 400 dollars fee i had to pay, i was waiting til i could pay it at once. and they closed the acct after 60 days. Yet when i would call they never told me they would cose it after 60 days. but anyways I paid if off right away. how bad will my credit suffer?

Answer 1

Things like this will only effect your credit if they sent it to a collection agency.  Have you gotten any calls from a collection agent?  if not then it stayed between you and the bank.  Even if it did hit your credit since it was not that bad and you paid it off it should not hurt you much at all.  The best way to find out it to check your credit report.  By law you are allowed to check your credit report once a year for free.  If you have not checked it yet go to one of the three major credit reporting websites and get it for free.

Answer 2

Why didn't you call the bank immediately after you got all those overdraft fees?  100% of the time the bank WILL get rid of at least half of the overdraft fees!  Banks know it's ridiculous that you get charged $30 for a $0.50 cent charge, but that's also how they make money - they normally process the largest outstanding charge and follow those charges in descending order, thus allowing them to collect the maximum amount of overdraft fees.  They also do dirty tricks like hold a deposit you've made, so that a bunch of overdrafts rack up.  That way they are able to collect ridiculous amounts of overdraft fees.  Banks WILL ALWAYS reduce the overdraft fees if you call them out on these tactics and threaten to take your business elsewhere.

I'm afraid to say that now that your account is closed and it's been over 60 days, you have no way of resolving this situation with Wells Fargo.  Pay your balance to avoid credit repercussions.  Call them to make payment arrangements so that you can avoid them reporting to credit bureaus.  DO NOT open another bank account while you still have an outstanding balance with Wells Fargo, or you may have legal issues.

Answer 3

When they closed the account, Wells might have reported you to  Chexsystems.

Chexsystems is like bad credit h**l for people who mess up their bank accounts. Nearly all banks go through Chexsystems before they'll open a new account for you. And if you're listed in Chexsystems it's going to be very difficult for you to get another bank account.

Keep documentation that you paid off the overdue balance. If you do go apply for another account, and you're in Chexsystems, and you have paperwork showing that you paid the past due balance, you may be able to talk another bank manager into letting you open a new account (elsewhere - not at Wells).

Answer 4

It depends on wether or not they intend to collect the debit balance from you or not.

If not, they'll just take a loss and close your account because they don't want to deal with you anymore.

If they come after you for the overdraft they'll send it to collections and this is when it affects your credit.