Wells Fargo is Now Freezing Bank Accounts in New Scandal

Wells Fargo is now freezing bank accounts according to new reports from a customer, which has now led to a lawsuit.

“Wells Fargo seized a customer’s funds and shut down his bank account over a legitimate $207,765 deposit.

Ethan Parker says he opened a new account at the bank late last year specifically to deposit a large check that he received after the death of his adoptive mother.

But 15 days after the deposit, Parker says Wells Fargo shuttered the account, took the funds and accused him of forging the check,” reports DH.

According to the lawsuit, Parker then obtained a letter from the firm that issued the check to confirm its legitimacy.

But the bank was not swayed and continued to deny Parker access to the funds without “adequate explanation.”

The lawsuit asks the courts to force Wells Fargo to release the funds, and says Parker has been damaged in an “amount to be proved at trial.”

In a statement to Triangle Business Journal, a Wells Fargo spokesperson says the bank plans to defend its actions.

“We strongly disagree with the allegations made in the suit filed by Mr. Parker, and will defend our position as we believe Wells Fargo took the appropriate actions.”

Parker says he’s now unable to make house payments, and his lawyers say they’re looking for other people whose accounts were “improperly closed” by the bank over accusations of fraud.

But Wells Fargo isn’t the only bank freezing customer accounts.

The US Treasury Direct (TreasuryDirect) has left users without access to their accounts from weeks to months according to several reports.

Bank of America had also frozen more than 1,000 accounts connected to Coinbase this past summer.

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Also Read: A US Bank is Now Denying Customers Access to Money

People Are Now Unable to Pay Their Bills

A US bank is now leaving customers unable to pay their bills after freezing multiple accounts and holding money hostage.

“I have been trying to get a replacement card since August 5th and been given the run around. It’s now September and still no card.

They keep giving me one due date for the card to arrive after another and since that time another direct deposit have been deposited. I cannot pay bills or buy my medicine,” reported Eloise Hall to FrankNez on Friday.

Green Dot Bank users have reported multiple fraud incidents where the bank is prohibiting customers from gaining access to their money.

The bank, which is now facing a fraud allegations lawsuit, has left customers with no money from weeks to several months, many of which include retirees.

“My friend had this happen during covid. All Green Dot would say was that they weren’t giving him his money back, it was over three thousand dollars.

I had worked for almost 20 years at a bank and knew what they were doing was illegal. We first sent certified letters requesting return of his funds they went unanswered.

Eventually we reached out to the Attorney General and FDIC and once Green Dot was contacted by them they reached out to my friend telling him it was all a misunderstanding and that it was a computer glitch and that they would over night him a check for his balance, which they did, however they also told him he could never have another Green Dot account because of him going to AG and FDIC, not that he would want one.

The entire process took about 5 months but we didn’t give up and eventually got his money but he did lose his place to live in the meantime because he couldn’t pay rent or bills while they kept his money hostage.

I think they do that hoping people give up trying and they have their money on deposit”, reported Michele Weigand to FrankNez.

Also Read: Banks Are Now Closing Thousands of Accounts Daily

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Also Read: An Aerospace Manufacturer Now Files Unexpected Chapter 11 Bankruptcy

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