Patrick.net

Your money is NOT safe in the bank. Government can grab it all any time.

By Patrick   Follow   Mon, 5 Nov 2012, 3:33pm   1,162 views   12 comments
In Menlo Park CA 94025   Watch (0)   Share   Quote   Permalink   Like   Dislike  

A friend told me a story about how he sold a car to someone out of state and the State of CA lost his "planned non-operation" document:

http://www.dmv.ca.gov/online/vrir/faqpno.htm

So the state imposed a fine on him, and then late fees, and he just couldn't get through to a human being to tell them they were wrong.

Then one day he sees that the state sucked the bogus fine and late fees out of his Wells Fargo checking account without his permission. Scary. $150 gone.

It gets worse.

Wells Fargo charged him $100 fee on top of that, for the "service" of sucking the money out of his account to give to the state.

In the end, he got the $150 back from the state, but Wells Fargo never did refund that $100 fee.

The moral here is that your money is not safe at Wells Fargo, or at any other bank. The government can simply take all of it at any time, and the burden is then on you to fight to get it back.

What are good alternatives to banks?

Viewing Comments 1-12 of 12     Last »     See most liked comments

1. curious2 Follow Befriend (5) 31 threads 2,234 comments Premium

   1   3:44pm Mon 5 Nov 2012   Share   Quote   Permalink   Like   Dislike   With ZIRP, banks no longer need customers. There aren't good alternatives, because $ under a mattress invites burglary or home invasion. BTW, the drug war has done this for a long time: the DEA can allege that anyone's account is proceeds of drug sales, freeze the account, _sue_ the account, get a forfeiture award and give the $ to "law enforcement," all without ever proving a crime beyond a reasonable doubt.

2. Patrick Follow Befriend (54) 5,185 threads 6,156 comments 46 male Menlo Park, CA Premium

   2   3:50pm Mon 5 Nov 2012   Share   Quote   Permalink   Like   Dislike   curious2 says There aren't good alternatives, because $ under a mattress invites burglary or home invasion. Though having money a lot of money at home is a bad idea that doesn't mean there are no good alternatives. Let's think outside the box. How about gold or silver in various lockers to which you have the only key? Even a locker at the gym, say. I saw in a mystery movie once about how a guy just kept some document in the mail at all times. It was pretty safe (though not perfectly) and when it arrived at his house, he'd just mail it to himself again.

3. SFace Follow Befriend (2) 60 threads 1,298 comments Premium

   3   3:50pm Mon 5 Nov 2012   Share   Quote   Permalink   Like   Dislike   Patrick says Then one day he sees that the state sucked the bogus fine and late fees out of his Wells Fargo checking account without his permission. Scary. $150 gone. Fabricated. Anyone who has dealt with these things know that they just slap a lien or worst, garnishment. Taking it directly from the bank (in the manner as described above) is not a possibility.

4. Patrick Follow Befriend (54) 5,185 threads 6,156 comments 46 male Menlo Park, CA Premium

   4   3:53pm Mon 5 Nov 2012   Share   Quote   Permalink   Like   Dislike   SFace says Fabricated. Amyone who has dealt with these things know that they just slap a lien or worst, garnishment. Taking it directly from the bank is not a possibility. I'm sure you are wrong about that. I've known this guy for a long time and he's trustworthy. Google "checking account seized by the state". Seems to happen quite frequently.

5. SFace Follow Befriend (2) 60 threads 1,298 comments Premium

   5   4:12pm Mon 5 Nov 2012   Share   Quote   Permalink   Like   Dislike   Nope, I don't think the DMV will all of a sudden take $150 casually from someone's bank account like it is their own. It's so fabricated no need to Google anything, just thinking will do.

6. Patrick Follow Befriend (54) 5,185 threads 6,156 comments 46 male Menlo Park, CA Premium

   6   4:25pm Mon 5 Nov 2012   Share   Quote   Permalink   Like (1)   Dislike   Here is proof that the DMV will indeed all of a sudden take $150 casually from your bank account like it is their own: https://www.ftb.ca.gov/individuals/dmv/billing.shtml See point number 6: Why was my bank account levied? We levied your bank account because you did not respond to the demand letter.

7. curious2 Follow Befriend (5) 31 threads 2,234 comments Premium

   7   4:27pm Mon 5 Nov 2012   Share   Quote   Permalink   Like   Dislike   SFace says no need to Google anything, just thinking will do. Theory must yield to facts. I am always surprised by people who don't want to learn anything. Thanks Patrick for finding the link.

8. Quigley Follow Befriend (6) 17 threads 519 comments Huntington Beach, CA

   8   4:30pm Mon 5 Nov 2012   Share   Quote   Permalink   Like   Dislike   The truly horrid part of that story is the Wells Fargo fine. I used to have an account with them but the fines for this and that, and the fees every time I turned around just turned me off. I quit them ten years ago. I assume they are the same greedy vultures as they always were. Some people convert their currency to gold and silver and put it in a safe deposit box. That idea attracts because of inflation you may see significant appreciation.

9. SFace Follow Befriend (2) 60 threads 1,298 comments Premium

   9   4:49pm Mon 5 Nov 2012   Share   Quote   Permalink   Like (1)   Dislike   Patrick says Here is proof that the DMV will indeed all of a sudden take $150 casually from your bank account like it is their own: I guess you are correct if your friend didn't get a notice(s) of bank levies and given a deadline date to respond. It's a function of ignoring which is mostly a "you" problem.

10. Patrick Follow Befriend (54) 5,185 threads 6,156 comments 46 male Menlo Park, CA Premium

    10   4:51pm Mon 5 Nov 2012   Share   Quote   Permalink   Like   Dislike   Quigley says Some people convert their currency to gold and silver and put it in a safe deposit box. Safe deposit boxes are not safe! They can be opened and the contents taken by government agencies just like a bank account can be robbed by the government. http://www.rapidtrends.com/safe-deposit-boxes-maybe-not-so-safe/ http://www.ehow.com/list_7194631_safety-deposit-box-levy-laws.html http://answers.yahoo.com/question/index?qid=20080619192758AAqpY5h

11. YesYNot Follow Befriend (2) 15 threads 428 comments Reston, VA

    11   6:22pm Mon 5 Nov 2012   Share   Quote   Permalink   Like   Dislike   While that would suck, it isn't a good reason to not deal with the banks. It's a mostly avoidable problem, and there are much better things to worry about in life.

12. Patrick Follow Befriend (54) 5,185 threads 6,156 comments 46 male Menlo Park, CA Premium

    12   6:25pm Mon 5 Nov 2012   Share   Quote   Permalink   Like   Dislike   I just think it should be much more widely known that such things can and do happen. Banks offer convenience, but they do not talk about the risk.