Wells Fargo froze my account

[Sammie]

Update! We went and opened up new checking Accts. at a small FDIC Bank, this morning went to SS to give them the new Banking information. Waiting for my dh's check to go into the one at WF this week & then closing out the WF accounts. Bringing all the paper work & Attorney's fees tomorrow & Filing next week.

Thank you everyone.sammie

[Sammie]

Congratulations Joseph & everyone else whose BK has been discharged!

We are just starting this process & I joined this great Forum last week & have learned more in a week than I have in a life time.

This thread has virtually saved us before we file this week. We have put off filing until next week so that we can open upew bank accounts. We have 3 checking accounts at WF, a Mortage & a Loan. We are going to a small bank this afternoon to open up our accounts & then to WF later in the week to close out our checking accts. I have a direct deposit on Wed. & want to make sure it gets in there & then close the account.

Thank You so much! This BF and all of your knowledge is really saving the lives of people who are at their lowest points now. sammie

[WhatMoney]

So Wells is saying that now, after they have frozen all your money....you can come and go in the accounts as if nothing ever happened?
Unbelievable!
Check with the ruling against Wells from June of this year...there is a well-documented case about this. The filer didn't even disclose the account on the original filing (later amended to include it) Wells froze 17K...and they sued...and won, on appeal, Wells got a handslap.

Debtor counsel requested that the bank unfreeze the accounts. The bank refused without the trustee’s permission. Debtors responded that the bank’s actions violated the automatic stay. The bank disagreed so debtors filed a motion for damages based on the bank’s willful violation of the automatic stay. The bankruptcy court denied the motion. Debtors appealed. The court of appeals reversed saying Wells Fargo violated the automatic stay.

The BAP reversed, but it has been appealed to the 9th Circuit Court of Appeals, and there has been no decision. Nor is it clear WF released the funds unless the Trustee ordered them to do so. It was the Trustee who refused to release the funds, by not replying to the debtors request to do so. I expect the Trustee was not happy about the initial non-disclosure of funds.

I don't have to read the Mwangi v. Wells Fargo Bank again, I've already done so twice a week ago. I also posting in that thread - so you might check my posts on why WF is appealing, based on other district court rulings, and what their options are now.

A court decision does not make it State Statute. And as long as the case is still in appeal, it will not help to sue WF again. The court would likely just set the case aside until the 9th circuit court of appeal rules.

I don't like the WF legal policy either, but I'm trying to explain why I think the WF legal team has made this decision. There's nothing you can do about it - WF is not going to change policy until there is consistent law across the country, which usually means taking it to the Supreme Court of the United States.

[fleeteric]

So Wells is saying that now, after they have frozen all your money....you can come and go in the accounts as if nothing ever happened?
Unbelievable!
Check with the ruling against Wells from June of this year...there is a well-documented case about this. The filer didn't even disclose the account on the original filing (later amended to include it) Wells froze 17K...and they sued...and won, on appeal, Wells got a handslap.

Debtor counsel requested that the bank unfreeze the accounts. The bank refused without the trustee’s permission. Debtors responded that the bank’s actions violated the automatic stay. The bank disagreed so debtors filed a motion for damages based on the bank’s willful violation of the automatic stay. The bankruptcy court denied the motion. Debtors appealed. The court of appeals reversed saying Wells Fargo violated the automatic stay.

[WhatMoney]

I have seen a lot of posts how this is basically illegal, and against BAP policy....some good that is!

Wells Fargo doesn't think it is illegal or they wouldn't continue to have this policy. And they are appealing the BAP ruling. In other federal court districts in the US, the courts have ruled that WF is within their rights to freeze BK accounts. WF operates throughout the country and figures if it's legal everywhere but the 9th district, it's still legal and that they have a good chance of getting the BAP ruling overturned in their favor in the 9th.

[fleeteric]

same thing just happened to me!
Filed thursday...checked my account Friday....all is well. Checked Saturday....it's ALL GONE! Even the 150.00 in the savings account (so much for the 5000 limit.)
From what I have read, Wells was sued in June, 2010, and apparently was told they cannot do this. But, they do it anyway.
They dont make the funds available to the trustee, they dont do anything with it. just sit on it.
My take is that they are looking around to see if they are owed ANYTHING by us, and then want to take it.
I work on home loan modifications...and Wells if THE WORST BANK OUT THERE! I should have known this would happen, and am kicking myself for not moving my money.
Good luck to both of us.
I have seen a lot of posts how this is basically illegal, and against BAP policy....some good that is!

[ImmortalfWd]

I have my checking with WF and am going to be filing next week. Is it confirmed that they will only freeze what is in there the day they are notified? If so there won't be much for them to freeze of mine, and if I can continue to use my account as normal with my future deposits I'll be fine.

[onthebrink]

God bless you and your family, Joseph!

[coolmom04]

Congratulations on the discharge!!

[jshep]

I started this thread a few months back, and thought I'd report that I received my discharge today. My Chapter 7 Bankruptcy was final on March 9, 2010.

The only snags were Wells Fargo freezing my checking account, then freezing my Mother-in-Law's account (that my wife signs on to help her pay bills). We did have to appear last month on our reaffirmation agreement on my vehicle, which was approved.

We originally filed on November 4, 2009, so from start to finish it was a few days over four months.

I would like to thank everyone in this forum for the help and support I received here during this process. We have never filed bankruptcy before, and it was all very mysterious to us starting out. This forum helped us remove a lot of that mystery. I just wish I found it before things started to go off the tracks, because I could have avoided the stress of having the checking account shut down at the start of a holiday weekend.

Thanks again, and I will continue to monitor this forum to see if there is anything I can do to help and encourage others who are just starting the process.

-Joseph

[whipster1]

WF will freeze the account even if you don't owe them a cent. They will freeze any account you are on. Taking the money out might be a good approach.

[nickifan]

Our attorney warned us that we should move our money from WF before we file. They will freeze your account even if you have no debts/loans with them.

I had another free consult with a BK attorney last week. My issue with WF is that my name is on my MOTHER's account, and her checking account is funded solely with her SS check and a small pension, both on direct deposit. (Meaning it would be a royal pain to switch her to another bank.) My mom is in a nursing home and also legally blind, so I (and my sister, also on the bank account) pay the bills.

I have no WF bank account myself, but I do have a Wells Fargo Financial personal loan, with $450 outstanding. I want to discharge that if I do Ch 7, but I am concerned about WF freezing my mom's account simply because my name is on it.

I brought this up to the attorney, who originally said "get your name off" mom's account...then later decided that just emptying the account on/right before filing day would suffice, then I could put the money back in a few days later. She said another client had the same situation and that worked out. She did acknowledge that the BK trustee could order the funds unfrozen (if WF did that), but it would take time, and not necessarily be resolved in a week. She also said not to pay off the WF loan, which is what I was thinking of doing to hopefully avoid any WF intrusion on my mom's account, but just make the regular payment until I decide to file.

What think of this approach?

[jshep]

REsponse from Comptroller of the Currency

When I was in a rage over Wells Fargo freezing my bank account after I filed Chapter 7, I went online to see where I could file complaints about their practice.

One of the complaints was with the Comptroller of the Currency, Administrator of National Banks.

I received a letter back from them today saying:

"Our records indicate that we had previously established a case on this issue under Case 992237. In order to streamline our process and avoid any duplication, we are closing this case and you will be notified about the resolution of your complaint under Case 992237."

It appears that this office of the federal government is already investigating this practice by Wells Fargo, so my complaint joins the other case in progress.

For others who have had this done to them by Wells Fargo, you might want to file a complaint. You can do it online at this website. That way you would be part of the ongoing investigation:

http://www.occ.treas.gov/customer.htm

My complaint centered around not being informed by Wells Fargo, and my belief that they had no legal reason to freeze the account. I would have understood it had the Trustee ordered them to freeze the account, but Wells Fargo freezes them automatically when they discover bankruptcy has been filed. Then one has to get the Trustee to tell them to let the money go, which is a time consuming and potentially expensive process because it involves getting you own Attorney to do more than they were originally paid to do.

[BobMango]

I've got 15K frozen in Wells Fargo -- just found out today. Filed BK this past Monday. Tomorrow is Thanksgiving so I'm screwed until at least Monday. So what if I just dismiss the BK -- wouldn't Wells Fargo have to release the money? I'm so confused about what to do.

Unfortunately you can't just dismiss the bankruptcy. Once you file it's in the trustee's hands.

Did you have that money exempted? If not it's likely the trustee would take it if WF did not. If you are not cross-collateralized with WF and were able to exempt it then you should get your money back.

[jshep]

I've got 15K frozen in Wells Fargo -- just found out today. Filed BK this past Monday. Tomorrow is Thanksgiving so I'm screwed until at least Monday. So what if I just dismiss the BK -- wouldn't Wells Fargo have to release the money? I'm so confused about what to do.

As upsetting as it was, it was fairly quick and easy to fix. One problem is that Wells seems to have a habit of doing this to people just before closing for a weeknd or holiday. I could have had my money back the next day, had they not done this to me on a Friday night.

I would not suggest dismissing the BK.

What I would do is contact your Attorney ASAP. Ask the Attorney to contact the Trustee and have the Trustee contact Wells Fargo and direct them to release the funds.

My account was frozen on a Friday, then, Monday morning my Attorney did this, and the money was available to me that same afternoon. There have been no problems since.

Good luck. This was terribly upsetting to us. I wish I had read up on it before filing because I could have avoided it completely if I had just known. I would definately be interested in helping in any lawsuits against Wells Fargo over this practice. I have detailed records of what happened in our case.

-Joseph