A MAJOR BANK has been forced to apologize after it provided a customer unusable checks for a bank account, prompting claims the recipient was blocked from accessing over $25,000 of his own money.
Derek Monroe, 56, says he was significantly inconvenienced after Wells Fargo wrongly issued him two checks for a checkless banking account.
Former Wells Fargo customer Derek Monroe holding two starter checks wrongly distributed by the bank[/caption]
Wells Fargo has apologized to a customer after the bank wrongly issued checks[/caption]
The checks were unusable, preventing Monroe from withdrawing his funds and causing headaches for himself and his family.
He claims they were fake checks.
“You just can’t make this stuff up,” Monroe told The U.S. Sun.
“In my 40-plus years experience with banking, I have never come across such a socio-path-like institution that is not only out to make a profit out of customers but is actually out to harm them.”
Monroe thought he had received fake checks because his new bank, Old National Bank, rejected the documents despite him having enough money in his Well Fargo account.
Starter checks, sometimes known as counter checks or temporary checks, are printed checks that normally contain the bank’s routing number and account information.
Banks issue starter checks for new account holders to reduce fraud and eliminate wait times for customers.
Financial institutions can also earn fees from printing personalized starter checks.
“The banker at Old National Bank told me that in her 30 years experience she never had an officially issued check rejected if there is enough money to cover it,” Monroe said.
The Illinois man had opened the Wells Fargo account for his son, Milan, for personal use while he was studying at university.
After several attempts to contact Wells Fargo, a bank representative informed Monroe the only way to get his money out was to visit an actual branch in person.
Monroe claims to have been seriously inconvenienced by this, as it forced his son to take the bus from the University of Illinois back home to Chicago to attend the bank branch the next day.
He then dropped his son back at school, traveling over 400 miles in two days, or about 11 hours.
Monroe attempted to sue Wells Fargo, alleging negligence and breach of contract, and seeking resolution in the form of payment for lost interest income, refunds for check fees, and travel costs.
BANK SAYS CHECK SENT “IN ERROR”
The U.S. Sun contacted Wells Fargo, with a spokesperson saying the checks had been issued “in error” and apologized for the mistake.
“When a customer opens a Clear Access Banking account, we make them aware that it is a checkless banking account,” the spokesperson said.
“Unfortunately, we provided our customer with starter checks at the branch in error.
“We apologize for this error and have taken action to correct the mistake.”
Wells Fargo disputes Monroe’s characterization of the checks as “fake.”
After The U.S. Sun inquired with Wells Fargo, the bank offered Monroe a $750 settlement payment to dismiss the case.
Monroe was first offered a $250 settlement and was asked to sign a non-disclosure agreement.
Monroe was outraged by this.
“The settlement amount would not cover even filing fees, lost interest income, and bank fees, not to mention travel fees,” Monroe said.
“The $250 offer of settlement is seriously only in a degree of insult that the bank is interested in inflicting.”
Monroe accused the bank of being like a “pirate ship without any control at the helm.”
“I simply do not understand the corporate management and culture at the Wells Fargo bank as the only thing I can compare it to is a pirate ship without any control at the helm,” Monroe said.
Monroe has now accepted the settlement payment.
WHAT IS A STARTER CHECK?
Tips for consumers
- A starter check, also known as a temporary or counter check, are a set of plain checks from a bank
- The check does not have your name or address on them
- They often do not have a check number on them
- They do not have personal identifying information on them
- They are issued for new accounts until the consumer has time to order real checks
