Customers in California that do their banking with Wells Fargo may be seeing a paycheck heading their way soon. A judge has made a ruling stating that Wells Fargo must pay back hundreds of millions of dollars in overdraft charges of its customers.

Consumers went to court over the extreme over draft system that Wells Fargo uses to establish transaction amounts. It appears that Wells Fargo would use the highest amount for the overdraft charge, collecting close to $1.4 billion in only two years.

Wells Fargo to Reimburse Customers

The judge ordered Wells Fargo to pay for restitution to both past and current customers. Past customers will be receiving a check while current customers will more than likely receive credit.

Before any court rulings came out, Wells Fargo was in the process of changing its overdraft and credit card fees due to new government regulations that took effect.

Wells Fargo expects a loss of $530 million in revenues with the changes that are to take effect and, as such, they have sent out notification that they will no longer be covering insufficient funds due to debit card transactions unless the customer choose to take its protection for overdrafts and the charges it implies.