A massive bank is now freezing business credit cards and closing accounts without warning, affecting thousands in the process.
A leaked Wells Fargo phone call was provided to FrankNez regarding the closure of thousands of small business accounts due to a banking error.
The Wells Fargo representative stated that there is currently a team of 13 to 14 people working on finding a resolution for the thousands of small business owners that were affected.
Cheryll Schailey, a small business owner in New Jersey received a letter from the banking giant advising that four of her employee’s credit cards were going to be shut down due to inactivity in October of 2023.
“Knowing that was incorrect and they were being used, I called Wells Fargo,” she told Frank Nez.
“Rita H. in the small business complaint department said that Wells Fargo was aware of a “glitch” which sent out all those letters to thousands of small business owners but assured me they would not be shut down.
Upon my request, she emailed me a letter verifying that my credit cards would be safe and that the “glitch” was identified and not to worry about losing access to them as they would remain open.
About 3 weeks later all 4 credit cards were shut down causing many purchasing issues.
In November, about a week afterwards, I received a mailed letter verifying that they were indeed permanently closed.
Since the credit cards were shut down 2.5 months ago, I have reached out to Wells Fargo multiple times begging them to reinstate them.”
Cheryll took it into her own hands to fax Wells Fargo the letter where the bank promised the small business owner’s credit cards would not be shut down.
She emailed them several times and was able to legally collect recorded phone conversations with representatives.
“Finally, I found an employee that spilled the beans as she explained what was going on. (I have the recorded call). She said that many months ago “many thousands” of Wells Fargo Business credit cards were mistakenly shut down.
They have been inundated for months trying to reopen these credit cards. It has been a slow tedious process with many people angry that this has greatly affected their businesses,” Schailey told Frank Nez in an email.
To date, only one of the four credit cards has been reopened to the small business owner.
Below is the leaked phone conversation of a Wells Fargo representative confirming thousands of small business owners have been affected.
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Also Read: A US Bank is Now Abruptly Freezing Accounts and Money
Other Banking News Today
A customer now involves the police after a massive bank closed their account after five years, sources report.
A Capital One customer was shocked that their account was closed five years after they had an issue with the bank, reported The-Sun on Thursday.
The anonymous customer explained the unfortunate situation and asked for help in a Reddit post.
In the banking subreddit, they said that five years ago they were put in charge of a student organization and the business account was put in their name.
They noticed some strange activity on the account and found that the former treasurer had an old checkbook and wrote himself one for $8,000 after graduating.
“I reached out to him (I know I should have gone straight to the bank, I was 19) — to which he was responsive and said it was a mix-up with his roommate/business partner and he’d write a check for the $8000 back,” they said.
“He wrote that check and it bounced within a day or two.
Capital One of course did not like this, so I opened up a fraud case with them and the police.”
Nothing came of the case, and when the poster graduated they passed it on to someone else and forgot about it.
In the comments, they specified that the dispute was never closed in their favor because it would have required going to civil court.
Then, earlier this month, they got a call from Capital One saying it was terminating the banking relationship, their accounts were closed, and they were never allowed to bank with the company again.
“What the hell?! No one in support will or is allowed to help much, they just gave me 2 emails to reach which take 60 days to respond,” they wrote.
They said they would go into their local branch and try to re-open the case from 2018, but they were worried the incident would damage their overall banking relationship.
“Either way, I want to get this guy in trouble for what he did because this should NOT be my problem — I was the victim of fraud, not the perpetrator,” they wrote.
Luckily, they got all their money back, but now they’re forced to find a new bank, reports The-Sun.
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Also Read: A Massive US Bank is Now Closing Credit Cards
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