Today was a bad day.
No, today was a very, very bad day.
I got complacent in my cash paranoia, and it came back to hit me hard today. One of the items on my to-do list was get a new business checking account setup outside Wells Fargo (because I have an outstanding business line of credit with them). Well, that’s going to be very difficult now.
I logged onto my Wells Fargo business checking account today to see if a check I had deposited had cleared. What do I see?
A zero balance.
And a transfer of over $3,000 that just read “tele-transfer”. Now, I’m not usually one to cuss….but if you could have only heard the words running through my head.
My first thought was, “Ohh crap, the IRS man cometh”. But that didn’t seem to make much sense, I have developed what I thought was a good relationship with my IRS account manager. He wouldn’t do this, would he?
I was right, it wasn’t the IRS. My payment plan with them is hopefully set to be approve this week. (not that I have the payment at the moment!)
It was the Wells Fargo Legal Dept. I had a line of credit with WellsFargo from a ways back (2006). I haven’t heard from them (at least via mail) in probably a year. I knew the 20K line of credit wasn’t going away, but I had hoped to settle the account (along with a few other business accounts) at some point.
Now I’m really quite screwed until I can talk to my account lady at Wells Fargo tomorrow.
Note: I completely understand what happened on WellsFargo’s end. They saw a checking account with a good chunk of change in it, and they took it. And I’m sure that when I got the loan I authorized them to do this, should I ever default on the loan. I also understand that I have an obligation to pay this money back. End my disclaimer
The only good news is that thank God I took out 3K a few weeks ago. I had intended to actually put another 1K in today, before seeing what happened. I will on the horn tomorrow at 7am to talk with Wells Fargo. If they can’t reverse at least some of that huge debit, my business could be in so much of a pickle that I seriously start looking at bankrupting the business. It’s current form doesn’t even remotely resemble the business I had when I got these loans.
Crap. Crap. Crap.
I know this is all my fault, and I know I probably deserve all of this. It just really, really, sucks right now. I have payroll in 5 days, and I cannot operate my business if everything I deposit gets sucked away by Wells Fargo collections. They will drive my business into bankruptcy, and I truly won’t have any options then. I really wished they could have given me some notice here, even though I realize they didn’t have too. It truly would have been in their best interest…
Off to try and get some sleep (yeah, right)
Side note: if anyone has a recommendation of a business checking account that would approve me (my credit is terrible), please let me know. I have a plan to combat this huge setback, but I don’t know….I’ll know more tomorrow.
{ 9 comments… read them below or add one }
If you have a walmart store close by, their banks have what they call 2nd chance checking.
hmmm maybe you might want to just operate in cash for a while, or out of a personal account if you have one.
I have no recommendations for a business checking account but I wanted to put in some words of support. I do hope that you find a way not to let this setback shut your business down. I’m sure many people, myself included, is pulling for you. Good luck.
I am sending your TONS of positive thoughts! I know how terrible it feels to work so hard at digging yourself out, staying on the right path, doing things right then having a big setback like this. It sucks. But it will pass. You will figure it out.
And if they won’t give you the $$$? How much is your payroll? It’s time to think of a contingency plan, just in case. Do you have anything you could liquidate quickly to raise the cash?
I just noticed that one of your sidebar ads is for Wells Fargo Checking-lolz.
And if it gets too overwhelming, take a walk, get out in nature. my problems always seems silly after an hour with my dog at the beach. I don’t know why, but it always works. You’ll get through this, look at how far you’ve already come.
Hey Debt Kid:
Un-official big sister here with a few ideas and suggestions for you.
First idea/suggestion: Is your business incorporated or does it have any legal structure (i.e., partnership) where you could have someone else (that you trust) open the business account? My thinking is that if you trust her, put your mother down as one of your owners. The risk, however, is for your mother. Should you start writing bad checks for the business, she could become responsible.
Question: was the line of credit for personal or business related? Was it subject to your bankruptcy process?
Question: have you spoken with your bankruptcy attorney about WF action ad any action/recourse you may have to have some, if not all, the funds returned?
About WF and seeking recourse – talk with your BK attorney. Years ago (at the height of the dotcom boom) WF got involved in selling “securities.” My parents in their retirement were very conservative investors – only having their $$ in CDs and real estate. They had sold a piece of property and went to WF to buy a $100,000 CD. They were introduced to a young man from “WF Securities” who had what he called an FDIC insured “callable” CD with a great interest rate. My parents explained to him they would need the funds for a RE investment in approximately 12 months – could it be cashed at that time. The young man assured it could.
You can guess what happened: One year later and it was the dotcom bust and my parents went to cash the CD. It turns out the CD was “callable” only to the bank (my parents couldn’t cash it in) and only the interest rate was FDIC insured. If the wanted to cash in the CD, they would receive only $76,000. The young man was as nice as could be as he was screwing my parents. He actually lied to them and I found the documents to prove it. The best recourse was to call the local media. A page one story got WF attention. The day after the story ran, my parents got a call from WF corporate office where a check for $100,000 was waiting along with an attorney and a “non-disclosure agreement” that my parents would never again speak to the media about their experience.
What the bank did – I believe the term is sweeping – and is legal. And no, they don’t need to notify or inform you. They just do it. Guess they learned that from Nike.
In the meantime, I’ve started my blog and you are on my blog roll. I’ve got my fingers crossed. Any suggestions are greatly appreciated.
Hey Debt Kid:
It would be SO HELPFUL for all of your readers to see a spreadsheet of all the debts, personal and business. Know where you are in the BK process now long it will be until it is concluded. And, get a better picture for your business’ income generation, your P&L statement, forecast, etc.
Thanks
I have been away from your blog for a while and then I come back and see this. Ouch!
I will keep you in my thoughts and I hope it all works out. That is a really tough situation to be in right now and I feel for you.
Why do you continue to business with the same people who are treating you like a milk cow? Make a list of all these assholes, and then cross them off one by one. Either you are an idiot who can’t do third grade math, or certain companies make an industry out of broadsiding an innocent public.
Good God, when are you going to realize that you are not the victim, you are a willing participant. Protect yourself! When the man picks your pocket — really, what more can they do? Break into your house? Oh, that’s right, they already took your house.
Wells fargo asked me to make 3 payments of 1700,00 to make my bring my charge account to a lower interest rate,back to 9%. I did that thinking I was getting somewhere. NOT! As if I didnt have enough hardship. We are HVAC contractors in central Ca. Tied to the housing crash,our gross went from 1,300,000.00 mil to 230.00 in 3 years. I was not told during all of the negotiating any time that they could do this. To wait until I had finally collected 12,000 and deposited it to my account. They withdrew 14,300.00. In the night (like agood thief would)I have other checks out to pay my venders. Of course,They will bounce. I wont be able to buy materials, I have nothing to make payroll for three employees,with children . So decxeptive.