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Suddenly, bank account was gone
AJC ^ | 5/1/10 | Lucy Soto

Posted on 05/03/2010 5:12:21 PM PDT by Kartographer

When Hope and Matt Hughes stopped for supplies at a pet store last month, they thought the trouble with their debit card was just a glitch. But it turned into a financial crisis.

They quickly discovered that their bank, Wachovia-turned-Wells Fargo, had deducted $4,059.82 from their checking account, wiping it out.

It was no glitch. It is called the right of setoff or offset, a long-accepted practice dating to early English common law.

(Excerpt) Read more at ajc.com ...


TOPICS: Business/Economy; Culture/Society; US: Georgia
KEYWORDS: deadbeats
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1 posted on 05/03/2010 5:12:21 PM PDT by Kartographer
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To: Kartographer

I’ve executed offset - as a last resort - many, many times. Probably 98% of the time it was a pleasure because the debtor was such a jerk.


2 posted on 05/03/2010 5:17:26 PM PDT by Psycho_Bunny (The Quran and Mein Kampf: if you've read one you've read them both.)
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To: Kartographer

Wait till Obama care kicks in-it wont be the bank withdrawling money it will be the IRS


3 posted on 05/03/2010 5:18:59 PM PDT by funfan
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To: Kartographer
the couple, who rely on Matt Hughes’ once-a-month paycheck... have had to sell possessions on Craigslist, tap into his 401K and negotiate with creditors so they don’t put their house and car loans in danger

Sounds like the bank did make a serious mistake but I sure would want to know more about those other loans before I pass judgement on this one.

It is quite possible they had gotten in over their heads through poor judgement.

4 posted on 05/03/2010 5:19:45 PM PDT by Michael.SF. (Even Hitler had Government run health care, but at least he got the Olympics for Germany)
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To: Kartographer

Note to idiots in article: remember to pay off your loans... or if you do not plan to pay, move your money out of the bank that you owe money to.


5 posted on 05/03/2010 5:20:12 PM PDT by gogogodzilla (Live free or die!)
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To: Kartographer

what happen to them had to suck.


6 posted on 05/03/2010 5:20:18 PM PDT by Drango (A liberal's compassion is limited only by the size of someone else's wallet.)
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To: funfan
then, too, are the financial reform clauses impacting individual's financial transactions.

Just remember, whoever controls your money controls you.

7 posted on 05/03/2010 5:20:22 PM PDT by the invisib1e hand ("tender when stroked, fierce when provoked")
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To: Kartographer

Well, this is kind of a “he said, she said” thing. But it sounds as if they took their account because they ignored all requests to repay a student loan. And it also sounds as if there was plenty of warning.

I guess there is one moral to the story. If you’re planning to fink out on your debts, don’t do it in a bank where you also have funds deposited.


8 posted on 05/03/2010 5:20:50 PM PDT by Cicero (Marcus Tullius)
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To: Psycho_Bunny
So am I reading this article correctly, this couple borrowed money, had money in their account yet fell behind in their payments so the bank said “ok, we will take the money and pay the loan”. I am not seeing an issue here. My question is why did they think that they could fall behind on these obligations and the bank not take action?
9 posted on 05/03/2010 5:20:52 PM PDT by svcw (Habakkuk 2:3)
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To: Kartographer

It wasn’t so “sudden.” If I read the article correctly, the wife thought she had six months from her graduation to pay off. It’s been a year. And didn’t she notice some months ago that the bank was deducting a certain amount of money from her account? Why didn’t she or her husband contact the bank and work something out?

Sorry, but the story sounds fishy. I’ve heard of set-offs and they are a legitimate practice. Simply put, don’t pay off your obligation (or work something out with the lender) the lender has a way to get its money back. Otherwise, if the lender can’t recoup the money owed from too many consumers, it’s going to go under.

Look for the Obama administration to forbid setoffs and force banks and other lenders into bankruptcy.


10 posted on 05/03/2010 5:20:56 PM PDT by fatnotlazy
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To: Kartographer

Proving once again that there are consequences for the choices one makes.


11 posted on 05/03/2010 5:22:49 PM PDT by Bean Counter (We hang the petty thieves and appoint the great ones to public office -- Aesop)
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To: Kartographer

You mean if someone owes me 10 and I have 5 of theirs , I can keep the 5 ? Shocking .


12 posted on 05/03/2010 5:23:04 PM PDT by kbennkc (For those who have fought for it , freedom has a flavor the protected will never know F Trp 8th Cav)
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To: Drango

Sounds to me like they brought the misfortune upon themselves.


13 posted on 05/03/2010 5:24:24 PM PDT by fatnotlazy
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To: Kartographer
I think having your debt in the same place you store your funds would be a vulnerability. But I saw this:

"...Now, the couple, who rely on Matt Hughes’ once-a-month paycheck from Kimberly-Clark, have had to sell possessions on Craigslist, tap into his 401K and negotiate with creditors so they don’t put their house and car loans in danger..."

I don't want to jump too hard on them, because I don't know the details of their lives, but...she took out a loan, with terms and conditions. She just graduated, they have a house, at least two cars, possessions and he has a 401K.

I don't want to put TOO fine a point on it, but don't people normally live in an apartment coming out of school, drive beaters and so on until they get on their feet and get a nest egg?

These people don't sound like they should have been able to buy a house. That sounds like one of the reasons we are in the state we are in.

14 posted on 05/03/2010 5:25:45 PM PDT by rlmorel (We are traveling "The Road to Serfdom".)
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To: Kartographer

bookmark


15 posted on 05/03/2010 5:28:17 PM PDT by GOP Poet (Obama is an OLYMPIC failure.)
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To: kbennkc
You mean if someone owes me 10 and I have 5 of theirs , I can keep the 5 ? Shocking

No. You must lend them the 5 so they can pay you the entire ten. That's what GM did.
16 posted on 05/03/2010 5:29:16 PM PDT by Krankor (wELL SAID)
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To: Kartographer

I’m not a big fan of banks but I recently had Chase forgive $10,000 on a credit card where my wife owed 13,000.
My wife had to quit her job suddenly because of Hepatitis C and was unable to pay the $500+ per month due on the card.
It was not easy and it took nearly a years worth of paperwork to accomplish it but they shaved the 10 grand off the total.


17 posted on 05/03/2010 5:29:20 PM PDT by Larry381 (Cum catapultae proscriptae erunt tum soli proscript catapultas habebunt)
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To: svcw

You read correctly.

“why did they think that they could fall behind on these obligations and the bank not take action?”
Because they believe they are entitled to whatever they want without consequences


18 posted on 05/03/2010 5:30:14 PM PDT by ebersole
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To: All

It sounds like they made the student loans their very, VERY last priority to the point of not even paying them anything at all. I wonder how much of that attitude was due to seeing other people simply not pay their student loans back, and nobody ever came after them.

I understand the provisions in the healthcare legislation for student loans had the proviso that you could pay back the loans at 10% of your DISPOSABLE income each month, and after twenty years, the rest would be forgiven.

Boy, if that is true, such a deal. Take out $200K to go to Harvard, and pay back...what? What if I only have $10 of “disposable income” each month...sounds like free government pie to me.

Anyone else remember seeing that tidbit in there?


19 posted on 05/03/2010 5:30:57 PM PDT by rlmorel (We are traveling "The Road to Serfdom".)
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To: Psycho_Bunny

Yep. It is a last resort. And not many places will take the entire amount of the loan unless they are real deadbeats, just what is in arrears. These people didn’t sound like they were deadbeats or they would have pulled that money out before all this happened. I think it’s a bit of a mix up.


20 posted on 05/03/2010 5:31:36 PM PDT by b4its2late (It is easier to beg forgiveness than get permission.)
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To: Krankor

Why do I have the feeling, reading this, that this is like one of those guys in New York with the little upside down cups on the table...:)


21 posted on 05/03/2010 5:32:23 PM PDT by rlmorel (We are traveling "The Road to Serfdom".)
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To: gogogodzilla
or if you do not plan to pay, move your money out of the bank that you owe money to.

Happened to my son's ex girl friend once. She got an income tax refund and had it sent to her account at the bank she had just included in a bankruptcy.

22 posted on 05/03/2010 5:32:39 PM PDT by Graybeard58 (No Romney,No Mark Kirk (Illinois), not now, not ever!)
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To: Kartographer

How dare that bad bank! /s


23 posted on 05/03/2010 5:32:52 PM PDT by divine_moment_of_facts (Give me Liberty.. or I'll get up and get it for myself!)
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To: Kartographer
I have to agree with most responses that the borrowers should have had a better handle on their lives and finances.

BUT, one thing does seem to stand out and it is common to several people I know who have found themselves in the barrel:

Communications from the bank, especially those dealing with the current spate of bad home loans, are confused, contradictory, and seem to the borrower to be intended to lead to failure.

Just sayin'

24 posted on 05/03/2010 5:33:18 PM PDT by norton
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To: Kartographer

The remedy for this is small claims court. The cost of filing against the bank is minimal, and the result will either be a reversal of fees (inclding filing costs) or a victory in court when the defendent bank fails to show. Sometimes simply a letter to the branch manager threatening legal action is all it takes.


25 posted on 05/03/2010 5:34:09 PM PDT by mac_truck ( Aide toi et dieu t aidera)
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To: Kartographer
Stay out of debt.

I bet if that lady did some cost-benefit analysis on how much her degree cost against the extra income she can expect to earn with it, it's a net loss.

Higher education has become a scam. The universities and the government conspire to bury young people in debt before they understand just what it is they're setting themselves up for. Meanwhile, the universities sell their student info to Citibank and MasterCard to put the finishing touches on the scam.

College professor are nothing more than unofficial union goons these days.

26 posted on 05/03/2010 5:34:14 PM PDT by E. Pluribus Unum (FYBO: Islam is a religion of peace, and Muslims reserve the right to kill anyone who says otherwise.)
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To: funfan

Wait till Obama care kicks in-it wont be the bank withdraw
ling money it will be the IRS

BINGO!!!


27 posted on 05/03/2010 5:34:52 PM PDT by mo
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To: b4its2late

Perhaps...sounds like they had her graduation date wrong. Still, even with that mixup, it sounds like she should have started paying in December.


28 posted on 05/03/2010 5:34:54 PM PDT by rlmorel (We are traveling "The Road to Serfdom".)
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To: rlmorel
Ha ha! I was thinking of Paper Moon
29 posted on 05/03/2010 5:35:25 PM PDT by Krankor (wELL SAID)
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To: rlmorel

You are exactly right. “Disposable” income is a very easy thing to manipulate in your favor if you know what you’re doing.


30 posted on 05/03/2010 5:35:38 PM PDT by wagglebee ("A political party cannot be all things to all people." -- Ronald Reagan, 3/1/75)
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To: funfan
"Wait till Obama care kicks in-it wont be the bank withdrawling money it will be the IRS."

Student loans and tax delinquencies anyway. It was pretty stupid to have their checking account with the same institution they were delinquent with.

31 posted on 05/03/2010 5:36:28 PM PDT by charles1252
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To: rlmorel
but don't people normally live in an apartment coming out of school, drive beaters and so on until they get on their feet and get a nest egg?

Not any more - instant gratification now. I want everything and more that my parents have and I want it now!

32 posted on 05/03/2010 5:36:45 PM PDT by Graybeard58 (No Romney,No Mark Kirk (Illinois), not now, not ever!)
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To: E. Pluribus Unum

“Higher education has become a scam...”

BINGO!! They take just as much advantage of the young and inexperienced as the mortgage scamtsters


33 posted on 05/03/2010 5:37:23 PM PDT by mo
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To: E. Pluribus Unum

That was my point. They don’t sound like they should have had a house, they should have been living in an apartment or something. Granted, even buying an older car now can require a loan for some people. Those $500-$1000 cars sure don’t go as far as they used to.


34 posted on 05/03/2010 5:37:38 PM PDT by rlmorel (We are traveling "The Road to Serfdom".)
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To: Krankor

LOL!


35 posted on 05/03/2010 5:38:13 PM PDT by rlmorel (We are traveling "The Road to Serfdom".)
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To: Kartographer

This is not the first time reading about Wells Fargo.

Illegally they tapped into a disabled person’s account that held only social security money. That is specifically not allowed. They eventually returned the money but then slapped an exorbitant fee on the disable person.

This is a bank to avoid at all costs. Seems sub-humans work there.


36 posted on 05/03/2010 5:38:50 PM PDT by Carley (WE CAN SEE NOVEMBER FROM OUR HOUSE)
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To: rlmorel
It sounds like they made the student loans their very, VERY last priority to the point of not even paying them anything at all.

Sounds that way to me too. Look at where they ran into trouble: at the pet store! I know that pets can bring joy into people's lives, but they are a luxury; if you can't pay your bills you can't afford a pet.

37 posted on 05/03/2010 5:38:51 PM PDT by whd23
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To: gogogodzilla
Note to idiots in article: remember to pay off your loans... or if you do not plan to pay, move your money out of the bank that you owe money to.

Especially with Wells Fargo. They are the kings of offsets.

38 posted on 05/03/2010 5:39:41 PM PDT by Jeff Chandler (Judas Iscariot - the first social justice advocate. John 12:3-6)
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To: kbennkc

“You mean if someone owes me 10 and I have 5 of theirs , I can keep the 5 ? Shocking .”

Another way, one time I had a check for $25k that bounced.

I called the bank several times requesting whether the account was good for a lesser amount, lowering the amount each time.

When I finally got an answer that the check for $22,500 was good I took $2,500 cash to their bank and deposited it into the customers account, went to another teller and cashed the check for $25k!


39 posted on 05/03/2010 5:40:17 PM PDT by dalereed
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To: Psycho_Bunny; AdmSmith; Berosus; bigheadfred; Convert from ECUSA; dervish; Ernest_at_the_Beach; ...

Thanks PB. Obama’s reform package will call for a jubilee year for debt?


40 posted on 05/03/2010 5:41:16 PM PDT by SunkenCiv ("Fools learn from experience. I prefer to learn from the experience of others." -- Otto von Bismarck)
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To: whd23

I was very lucky, and I bless my good fortune to be married to a woman who has good common sense, doesn’t feel the need to buy stuff, and is into saving and money management.

I owed over $1200 when we got married (Okay, a very large chunk of that went to an engagement ring, I admit) but we bought a very small house (standard 1963 ranch style with turquoise appliances and a red shag carpet!) a year before we were married and drove our cars for a while.

I am not someone who spends money like water, but I do subscribe to the “you could be hit by a bus tomorrow and what good will it do you” mentality.

We compliment each other well...:)


41 posted on 05/03/2010 5:49:05 PM PDT by rlmorel (We are traveling "The Road to Serfdom".)
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To: whd23

I missed that...the pet store!


42 posted on 05/03/2010 5:49:48 PM PDT by rlmorel (We are traveling "The Road to Serfdom".)
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To: Kartographer

We once had the IRS empty an account without notice for a tax debt we didn’t owe, and several years later we finally got it back, without interest and not so much as a thank you note. The experience soured me on banks, not to mention the IRS.


43 posted on 05/03/2010 5:50:02 PM PDT by pallis
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To: funfan

The IRS does already, and has been doing it for years.


44 posted on 05/03/2010 5:51:05 PM PDT by expatpat
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To: mac_truck

Why, these people owed the money and had for months been notified by the bank.


45 posted on 05/03/2010 5:56:20 PM PDT by svcw (Habakkuk 2:3)
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To: pallis

I had people who owed money to IRS. They tend to send many written notices before they go off taking it from their account or paycheck.


46 posted on 05/03/2010 5:57:55 PM PDT by Fee (Peace, prosperity, jobs and common sense)
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To: Psycho_Bunny

I love it when they say “you can’t do that” and I say “I just did”


47 posted on 05/03/2010 6:00:37 PM PDT by Orange1998
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To: gogogodzilla
or if you do not plan to pay, move your money out of the bank that you owe money to.

Better yet, never keep your money in a bank that you owe. It avoids unpleasant misunderstandings.

48 posted on 05/03/2010 6:01:31 PM PDT by PAR35
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To: Kartographer

Don’t keep all your money in one bank.


49 posted on 05/03/2010 6:17:25 PM PDT by Mike Darancette (Global Warming™ - Too big to fail.)
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To: Graybeard58

Yep - that happened to an old friend of mine - declared bankruptcy and was amazed that the bank took the little bit they scraped into savings - where they owed money! No notice necessary!


50 posted on 05/03/2010 6:18:34 PM PDT by RebelTXRose
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