"ZERO balance across her accounts…"


Wells Fargo is playing games
I didn't know that this was legal, but it doesn't surprise me. Emphasis added.

Unfortunately, a different friend that has been in the mortgage business for 15-years is going through some hard times re-inventing herself. She is doing well in this terrible market but as with so many, got a bit over-levered during the bubble years and is now spreading it thin trying to keep all of the monthly payments going out. Some months when it is thin, she will chose to skip a payment on a specific card or two to pay other things…but she is paying nevertheless.

Yesterday morning she logged into her Wells Fargo checking and savings accounts to pay bills online and there was a ZERO balance across her accounts. However, her debt was paid down considerably. Immediately she called Wells and they informed her that because she was over 30-days late paying her Wells credit that they drained the accounts in order to pay down the bills.

This is also the second time somebody I know personally has had this happen with Wells – the first had their accounts drained of about $5k to bring current a HELOC payment. Leaving people with zero money and no credit is a drastic measure. Stories like this will get around quickly – it will not be too long before you hear about practices like this on 60-Minutes (I happen to know someone there!)

Yes, the money was owed and she was getting calls from Wells collectors but I still have to question the way this was done. This ensures she defaults on everyone else this month and in the future must keep all money out of banks from which she has credit.

Good advice. Keep your savings and checking in one bank and your credit cards somewhere else.

I got this link from Wendy McElroy's site, and Brad there adds that you should be alert because your two banks may merge someday.

Personally I don't believe in credit cards, I find a debit card works fairly well for my day to day stuff and I pay cash or cashiers check for the big stuff, but that's me.

I avoid the online scams because I have only one email that I use to deal with my bank and monthly bills. That way, if bank information comes back to any email except the one I use for banking, it goes straight in the trash. One time or occasional purchases have a separate email designated just for that purpose. Regular suppliers each have their own email. If I get an email addressed to one of the regular supplier addys and it's not from the regular supplier, I know who sold it and that company ceases to be a regular supplier.

Unfortunately scams and shoddy business practices are an unavoidable side effect of commerce and your best defense is to watch your money carefully.

Whatever you do, don't believe government when the politicos tell you that they can protect you and make sure you get what's coming to you.

— NeoWayland

Posted: Sun - February 15, 2009 at 01:45 PM  Tag


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