Whistle-Blowing Financial Website Screwed Over by Wells Fargo

Via ML-Implode:

ML-Implode.com discovered in the course of its normal banking activities that Wells Fargo had frozen its bank account with no warning. Upon inquiring at the local branch (which had no direct knowledge of the incident), it was discovered the account had been flagged “credit risk”, and slated to be immediately closed.

These actions are more than slightly unusual because ML-Implode’s account was a plain checking account and was not an underwritten account. In fact, ML-Implode paid a monthly fee for the account, so Wells Fargo was certainly doing it no favors.

While the site is effectively insolvent (due to the impact of multiple frivolous libel suits from corrupt mortgage, e.g. by the outlawed Grant America scheme) and thus typically had a minimal balance, there had been no problems with overdrafts and all charges and obligations were always dutifully covered…

Read More: ML-Implode

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  • http://buzzcoastin.posterous.com BuzzCoastin

    this highlights the problem
    that the institutions that control financial transactions
    are enemies of freedom and civil rights
    you can put the name of almost any financial institution in this story
    the story would remain the same

  • Haystack

    Are banks really that safe? If you bury you money in your back yard, there’s a chance burglars will come and steal it, but if you deposit it in a bank, there are any number of sleazy institutions that might find some legal means of seizing/freezing your assets (IRS, creditors, the police, etc.). 

    And if for some reason you’re dealing with a big bank like Citigroup or Bank of America, your capital (times 10) is providing credit to nasty corporations that are already screwing you in other ways. 

    Posts like this one serve to reinforce the virtue of keeping at least some of your money “off the grid,” so to speak. 

     

    • Anarchy Pony

      Also, if you bury it in the back yard, you don’t have to worry about it burning up in a house fire like you would if you hid it under the mattress. 

  • DoctaFoo

    I went into my credit union the other day, and the teller informed me that, the only reason a bank would hold your check is to possibly incur NSF charges. not to ” clear ” as they indicate. It only tatkes a few seconds to check and see if the funds are available in the location of the account indicated on the check. Just one of many scams they pull off to trap people into making a mistake so they make $$. Your money is no more safe in a big bank than it is in a transparent purse on the streets. Credit Unions actually back up their loans with more money held than and big bank you can think of. Just thoughts.