Wells Fargo Bank Sued for Fraud, Freezes Woman's Bank Account
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Categories: Business
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| Running over customers |
The lawsuit, which was filed in San Francisco court on Jan. 31, claims that Brooke Yarbrough filed for Chapter 7 bankruptcy on Jan. 14, 2011, on behalf of 100 people involved in the suit. When she filed for bankruptcy, she petitioned that her personal account at Wells Fargo -- which is based in San Francisco -- remain active so that she could use it for living expenses.
The bank, without giving Yarbrough any notice, wrongfully froze her accounts. She was unemployed with no access to credit cards or other loans, according to the lawsuit.
"Wells Fargo was aware that blocking funds from the plaintiffs would cause severe financial hardship," the lawsuit stated.
Wells Fargo claims that as a part of its national policy, representatives download and review bankruptcy filings on a daily basis, and seize checking and savings accounts accordingly. On Jan. 18, the bank wrote to Yarbrough, saying that all the money in her account now belonged to Wells Fargo, which means "they are no longer available to you," according to the claim.
On Jan. 22, Yarbrough tried to use her debit card to buy gasoline. She was denied and told to contact her bank. Wells Fargo representatives then told her that her money had been seized, and she could owe overdraft charges.
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