patrick.net

  new post
register or log in

Patrick's 40 proposals »

10,750 registered users, 4 online now: curious2, Heraclitusstudent, jazz music, tovarichpeter

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

By Patrick (419/419 = 100% civil)   2012 Nov 5, 7:33am   ↑ like   ↓ dislike   2,073 views   9 comments   watch (0)   share   quote  

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?

Comments 1-9 of 9     Last »

1   curious2 (76/76 = 100% civil)   2012 Nov 5, 7:44am  ↑ like   ↓ dislike   quote   top   bottom   home   share  

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 (419/419 = 100% civil)   2012 Nov 5, 7:50am  ↑ like   ↓ dislike   quote   top   bottom   home   share  

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   Patrick (419/419 = 100% civil)   2012 Nov 5, 7:53am  ↑ like   ↓ dislike   quote   top   bottom   home   share  

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.

4   Patrick (419/419 = 100% civil)   2012 Nov 5, 8:25am  ↑ like (1)   ↓ dislike   quote   top   bottom   home   share  

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.

5   curious2 (76/76 = 100% civil)   2012 Nov 5, 8:27am  ↑ like   ↓ dislike   quote   top   bottom   home   share  

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.

6   Quigley (41/41 = 100% civil)   2012 Nov 5, 8:30am  ↑ like   ↓ dislike   quote   top   bottom   home   share  

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.

7   Patrick (419/419 = 100% civil)   2012 Nov 5, 8:51am  ↑ like   ↓ dislike   quote   top   bottom   home   share  

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

8   YesYNot (57/58 = 98% civil)   2012 Nov 5, 10:22am  ↑ like   ↓ dislike   quote   top   bottom   home   share  

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.

9   Patrick (419/419 = 100% civil)   2012 Nov 5, 10:25am  ↑ like   ↓ dislike   quote   top   bottom   home   share  

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.

Comments 1-9 of 9     Last »

Watch comments by email

home   top   users   about   contact  
#investing   #housing   #politics   #humor  
housing crash   thunderdome   sexy pix   site suggestions  
best comments   ad hominem comment jail   patrick.net on twitter   random post  
please recommend patrick.net to your boss