Sunday, August 18, 2019

The latest fraud coming from Buffett's favorite bank is in charging fees on the dead... dead accounts that is

In this Brave New World of digitalization, no one can ever be fully disconnected from something they have once signed up for.  And whether that means agencies such as Facebook, church ministries begging you for money, or a prior bank account you once owned, getting completely away from any of these is a task greater than even what John Wick had to do to 'get out'.

So it should not be surprising to discover that one of the most corrupt banks in the financial system has been charging overdraft fees on accounts that customers supposedly thought they had closed.

Graphic courtesy of Caglecartoons
Xavier Einaudi did not want to wait for Wells Fargo to send him a check. 
The bank informed Mr. Einaudi that it was closing all 13 of the checking accounts it provided his roofing company, CRV Construction, for a reason it called “confidential.” The letter said the accounts would be closed on June 27, and he would be mailed a check for the balance in his accounts. 
Mr. Einaudi went to his branch and collected the money, so he did not have to wait for a check to arrive in the mail. But the accounts did not close on the preset date.
For weeks after the date the bank said the accounts would be closed, it kept some of them active. Payments to his insurer, to Google for online advertising and to a provider of project management software were paid out of the empty accounts in July. Each time, the bank charged Mr. Einaudi a $35 overdraft fee. 
Mr. Einaudi called the bank’s customer service line. He went to his local branch. Nobody could help him. “They told me, ‘The accounts are closed out — we cannot do anything,’” he said. 
By the middle of July, he owed the bank nearly $1,500. 
“I don’t even know what happened,” he said. 
Current and former bank employees said Mr. Einaudi got charged because of the way Wells Fargo’s computer system handles closed accounts: An account the customer believes to be closed can stay open if it has a balance, even one below zero. And each time a transaction is processed for an overdrawn account, Wells Fargo tacks on a fee. - New York Times
To put it into perspective just how corrupt Wells Fargo is, since 2008 alone the bank has been fined or sanctioned 43 times.

Following the 2008 financial crisis and subsequent 'bank reform' act that was passed two years later, holding money in a bank is one of the most riskiest decisions one can make if they want to ensure their money and wealth is protected.  Yet even without the fear of banks using your deposits as a bail-in mechanism, it appears that even just trying to close your account with Warren Buffett's favorite bank can end up costing you thousands of dollars.

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