Posted on 10/05/2025 3:57:32 AM PDT by know.your.why
I wanted to let everyone know that the State of California is using some legal means to take money from bank accounts with no notice whatsoever. This just happened to me through Wells Fargo and I will be dealing with the matter after the weekend when their offices are open. Does anyone have experience with this? I lived in California over 10 years ago but I have no idea what this can possible be for.
Regards,
It never happened to me
btt
Does it matter? A search shows that its only California doing this. And this comes at a weird time with the gov shutdown and all.
Was it 37 cents? Five thousand dollars?
It matters!
(Also: The exact amount might give us a clue as to why / under what pretext this was done.)
Regards,
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?
From AI
Government Actions
Unpaid Taxes: The California Franchise Tax Board (FTB) can take money from a bank account for unpaid taxes.
Court Orders: A court order can be issued for funds to be taken from a savings account to satisfy a debt, as this can be a form of “levy” or seizure of assets.
Bank Actions
Right of Offset: Banks may be allowed to take funds from a savings account to pay a separate debt owed to the bank, such as a loan, if the account holder has defaulted on the loan and the bank’s terms allow for it.
Setoff Limits: In California, there are some limits to bank setoffs, such as not being able to offset for personal credit card debts unless you have authorized it, or for accounts that hold less than $1,000 in a state-chartered institution.
Thanks.
Deadbeat dad? Tax delinquent? Long unpaid fine?
Did you receive any legal notifications (email, print, text) ahead of time that this would be happening? If not, consider it a possible scam or stolen ID. Credit cards are easy to fix but banks, not so much.
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?
Can’t you call the bank now? They have an Indian company manning the lines
It could be the last year you were in CA for part of the year.
You might want to see if there were any “loose ends” from that year for taxes or fees.
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