Did Wells Fargo bank freeze my funds unfairly?

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Did Wells Fargo bank freeze my funds unfairly?

Postby p_s_92 » Mon Jun 20, 2011 8:34 pm

I received a convenience check(a balance transfer check issued by Chase against the line of credit of my credit card) with 0%APR which I could write to myself(i confirmed that with Chase and it was written on the letter which came with the convenience check) and deposit into my checking account. I deposited the check into a Wells Fargo ATM as i had a checking account with Wells Fargo.

Two days later, the Wells Fargo ATM operations office calls me and tells me that they cannot process such balance transfer checks and they have to be presented at a local branch. They informed me that they will be sending me the legal copy of the check back which I can deposit at a Wells Fargo branch. After two days, I find out that a bill payment i scheduled using my Wells Fargo checking account was not sent due to insufficient funds. I had scheduled bill payments depending on the funds I had(which was 3K) BEFORE I deposited the check.

On inquiring, I find out that since the ATM operations group sent my check back to me, it was marked as "Refer to Maker" in bank records and the Loss Prevention Group of Wells Fargo decided to close my checking/savings account, freeze my funds without notifying me. I explain the matter to 7 people on phone(out of which 3 were from the Corporate Executive Office). The people in the phone told me that though they know that it is not my mistake nothing can be done, bank decision to close my account is final and the inconvenience caused to me due to bill payments not getting processed, not having access to my funds is not their concern.

I wrote to John Stumpf(head of the Wells Fargo) about the whole situation but did not hear back and don't expect will) .

1. Do banking regulations allow any bank to terminate a consumer's checking/savings account, freeze their funds without notifying the customer like they did to me? I thought adequate notice was required by law. I had 3K in the bank before I tried to deposit the check. I feel the 3K funds are mine and WF has NO right to freeze them.

2. I am in Florida. So, where I can complain about this malpractice of bank? Dept of Financial Regulations which regulates banks in Florida or Office of Comptroller who regulates banks nationally or both?

3. Is it worth complaining or is it a waste of time as the government regulators could be buddies of Wells Fargo? I notice on the Facebook page of wells Fargo they have thousands of such disgruntled customers like me.

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Postby Meltdownblitz » Tue Jun 21, 2011 8:18 am

Wow sorry to hear about that man. I wish I could help but I wanted to say I have wells fargo and that scares me. I better change banks before something happens to me. I would say at the very least report it to bbb. What's a good bank to bank with?

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Postby Mogul of Pineapples » Sun Jun 26, 2011 11:02 pm

I can't say for sure what's legal and what's not in your situation but just common sense alone says this is very wrong. I don't understand the reason for rejecting the 0% balance transfer check to begin with, as that is the first time I have heard it happening. The check was from Chase and you were depositing it at a different bank, Wells Fargo. It makes no sense to me that would happen.

Definitely get to work filing complaints with both federal and state banking authorities but my hunch is that the state may be more helpful so you should file with them first. On their Facebook page with the disgruntled customers you mentioned, have any other had similar situations happen or have you found stories elsewhere of customers in the same boat?
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Postby journey2north » Thu Jul 07, 2011 3:03 pm

I currently reside in Florida too and have been told the banking can be difficult to deal with in this area. Needless to say the circumstances you have endured I would presume to likely be illegal. If the situation has not been remedied you should file complaints with the appropriate parties and regulatory bodies.

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Postby ezfortunes » Mon Apr 28, 2014 7:53 pm

wellsfargo for no reason at all cancelled out my debit closed my account without warning I had about $5000 in my account I made online doing a legal home based business I lost my job a year and a half ago due to hiring others for cheaper wages and they shut me down without ant notice very unethical considering all my bills were paid through my cking account

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Postby whit » Tue Apr 29, 2014 12:06 am

I believe banks like most non-profit businesses, have a right to terminate relations as long as their reasoning doesn't go against a regulation.

Funny you mention writing to stump, his son works at chase, it truly is a small world

May I ask how much your credit limit was with the Chase card, how much of that was available and how much is actually available for a convenience check (often the figure they say is available for cash advance but not 100% definitive)

Chances are, that check deposited didn't go through, if the amount is high, because there isn't enough to take out, and got returned.

To close/freeze the account seems a bit extreme, and I would fight for it, especially if it ends up with them placing you on a chexsystem

Checks deposited in ATM, IMHO, gets looked a bit more hard then when passed through the teller line, also if anything, the teller gets dinged on it more then you, because they're suppose to make sure it gets processed properly--if it isn't properly endorsed, payee is wrong or not acceptable, amount differs, etc etcetera, falls on them

If done on the ATM, it's up to you to make sure that the check is good

Which, for that, I don't understand why they went through that extreme..most people don't know that they can't write the full amount of CL available on their cc when it comes to convenience checks, kind of like how they don't know there is a %fee associated with it, because people tend to not read every single tiny word written on those offers

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