Overdraft Service On Hold at Wells

Wells Fargo & Co. has stopped seeking new users for a service that lets retail customers borrow against pending direct deposits.

Wells allowed customers to borrow up to $200 for a 5% fee. It was used most by those looking to avoid bouncing checks.

A bank spokesman said it has stopped providing the service to customers who have not used it since July. It also no longer offers it to customers in states that Wells entered as a result of its acquisition of First Interstate Bancorp.

Observers said placing the service on hold may be aimed at avoiding regulatory hurdles as Wells ventures into new states.

The service is "so new and it's innovative," said Wells spokesman Rod Sherrell, "you can't really tell how it is going to be received in other markets."

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