Regards,
It never happened to me
btt
Probably not legal. Do it now, apologize later. Probably a test of the credit score system.
How did you know it was the state? What was the “reason” listed for withdrawal? How much was taken?
Three words.
Old Glory Bank.
What did the withdrawal state? Was there a department associated with it?
Deadbeat dad? Tax delinquent? Long unpaid fine?
Perfectly legal, given that our bank deposits are assets of the bank - they own the money.
A “bail-in” is a financial mechanism used to rescue a failing bank or financial institution by requiring its creditors and depositors to bear some of the losses, rather than relying on external funds like taxpayer money (a bailout). In a bail-in, the institution’s debt is restructured, and certain liabilities, such as bonds or large uninsured deposits, may be converted into equity or written off to stabilize the institution.Key Points:Purpose: Prevents collapse of a financial institution while minimizing public cost.
How it Works: Creditors (e.g., bondholders) and sometimes depositors with funds above a certain threshold (uninsured deposits) absorb losses. These funds may be converted into shares or reduced to recapitalize the bank.
Example: In 2013, Cyprus used a bail-in to address its banking crisis, where depositors with over €100,000 faced losses or had their deposits converted into bank equity.
Regulation: Bail-ins are often governed by laws like the EU’s Bank Recovery and Resolution Directive (BRRD), which prioritizes shareholders and creditors over taxpayers.
Difference from Bailout:Bailout: External funds (e.g., government money) are used to save the institution.
Bail-in: Internal funds (from creditors/depositors) are used.
I recall reading something about this years ago. California had some sort of exit tax. And if you didn’t pay it, the state could seize your bank account. One thing I’m sure of is that Wells Fargo was involved.
Interesting that it’s the exact same bank here.
One more thing. Do you have an income-producing asset within California? Like a part ownership in a store, or something like that?
Moving to California 10 years ago was your first mistake.
“I cant believe that this is legal.”
It is not, it is unconstitutional because there is no due process and it presumes guilt. A computer just does it automatically without any court process or chance to defend yourself. There are no judges or legal due process involved at all.
I had it happen to me. And they came and took it out of my account in another state. There are several cases where they are now doing this automatically without due process.
1. They presume you owe any sales taxes collected from customers through your business whether you did or not. You are automatically guilty and they bill you an estimated amount and take it directly from your account anywhere in the U.S. you have funds.
2. They presume you owe any State income taxes to the state of Ca. whether you do or not.
3. If they have an automobile in their system that has expired registration they automatically take out the fees and fines to bring it up to date as registered. Even if it has been relocated to another state and registered in another state. If they still have it in their computer they will take the fees.
Note about #3, they will NOT take it out of their system. It took me three years to have them take a vehicle out of their system after I moved to Az. They completely ignored all my efforts and proof that it was no longer in Ca. and had been registered in another state for years. They sent me re-registration bills with fines for three years anyhow. Now they have a computer that just automatically hits your bank for these re-registration fees whether you even owe them or not.
It is completely unconstitutional. You are presumed guilty, no court process, no judge, they do not serve you, and you have no chance to defend yourself before the action is taken, and a computer just goes and takes your money. This really needs to be addressed.
I was under the impression only the IRS could go in and take money from a bank account with no notice or court order or anything. Sorry....good luck.
This is probably taken by Daffy Newsence for his Campaign. It costs a fortune to buy a seat in California. You have to bribe everyone.
AI says a State can take money from your bank account. I guess that’s the State Franchise Board in California. One would think they would be required to give the reason. Dang....
I think I can see your problem here...all the way from Michigan, bruh..
Have read through the thread.
Could someone have stolen your identity and is sticking you with an unpaid debt?
They probably “revised” your state income taxes for some random year and sent you a bill, but it didn’t find your mailbox, so they went the direct route. They’ve done it to me before too. How it’s legal I do not know.
Did you ever reside/work in Kalifornia?
If so, and you retired, they (at least used to) claimed part of your retirement and taxed it...many military got screwed by them for being stationed there...