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Re: This is new about feds. WARNING!

Freezing accounts by Wells Fargo is well known and due to the over-zealous implementation of a not-so-unique policy called "cross-collateralization". Apparently, if WF is approached by any recognizable entity that reports past-due monies owed to them by you, and WF can verify an account holding cash is in your name or you have signatory rights to, they can seize or freeze your account(s) until the debt is paid if the debt has a cross-collateralization clause in it. They do it for credit card companies, the Feds for bankruptcies, their own fees (legit or not) and others. BOA, Wachovia and credit unions also do it. And, because they are freezing and not seizing, they can freeze accounts that hold funds that would normally be protected from creditors, such as social security or VA money. Only defense: don't enter into cross-collateralization loans and keep your accounts in smaller banks or deal in cash.
This is CABL.com posting #284206. Tiny Link: cabl.co/mbl58
Posted in reply to: Re: This is new about feds. WARNING! by goodsky
There is 1 reply to this message
Re: This is new about feds. WARNING! goodsky 12/17/2009 12:23:42 PM