When Hope and Matt Hughes stopped for supplies at a pet store last month, they thought the trouble with their debit card was just a glitch. But it turned into a financial crisis.
Jason Getz, and her husband Matt Hughes had their checking account at Wachovia-turned-Wells Fargo wiped out when a student loan with the same bank was called in.
They quickly discovered that their bank, Wachovia-turned-Wells Fargo, had deducted $4,059.82 from their checking account, wiping it out.
It was no glitch. It is called the right of setoff or offset, a long-accepted practice dating to early English common law.
When the right of setoff is applied to bank accounts, it works like this: When consumers place money in bank accounts, they are basically agreeing to let the bank borrow the money, with a promise to repay, usually backed by the Federal Deposit Insurance Corporation. If the consumer then takes out a loan with that same bank and falls behind, the bank can use the money in that account to offset the loan.
The trouble stemmed from Hope Hughes’ $10,000 student loan, which the bank called in.
More Here..
Frankly, I don't have a problem with what the bank did.
ReplyDeleteI don't like banks in general, but if a person falls behind loan repayment, a bank is in its right to collect.
All goes to show that people should use more than one financial institution. One for loans, another for deposits.
Tough lesson.
“We are so far behind,” said Hope, 36. “I don’t want anybody else to go through what we’ve been through. ... I was blind-sided.”
ReplyDeleteYet another clueless american beeyatch. It is fitting that her name is "Hope".
Hope Hughes said she thought she had six months to begin paying back her loans after her May graduation from Kennesaw State University. She got a degree in marketing with three loans, two of which were government-funded and the other through Campus Partners, a private student loan program at Wachovia.
What a waste of money.
Hope Hughes, who volunteers with Girls on the Run, a nonprofit program for girls in third through eighth grade that teaches healthy living, has been searching for work since graduation. She had her eye on getting a master’s degree in fitness and nutrition.
Ok, so first she gets a degree in marketing, and then she "had her eye" on a fitness degree. WTF?! This guy needs to dump her stupid ass, RIGHT NOW!!! She will bleed him dry, forever!!
I bet I know what Hope does next...
ReplyDeleteTime to have a baby!
Student loan debt is the next bubble to burst. think of all the idiots going to get another degree, like they've been told, and then still having no job when they're finished, let alone the people graduating with their first degrees now who can't find a job yet have student loan debt to pay back.
ReplyDeleteThat being said, these people are clueless sheep just like the majority of people are clueless sheep. I bet they don't even learn from this experience.
Born & Bred American Dopes!!
Banks (and other corps) have been able through political slight of hand to achieve ultra super citizenship. They are allowed to charge usury interest rates and steal (offset) from people without notice. They get govt funds at 0% and then loan it out to the citizen class at 30%.
ReplyDeleteHow do we know that the Hughes didn't have some sort of defenses or counterclaims against the lender or whether the lender followed applicable law? We'll never know because lenders no longer have to present their case, defend it and win it.
Student loans are a huge scam. Another example of government welfare distributed on a few chosen lenders.
My student loan payments are $160 a month. Since April of 2009 I've made 13 payments totaling $1,910 - 33% to principal, 36% to interest and 20% ($375!!!!) to fees. I'm current on the loan.
I'm tempted to stop paying the loans and negotiate a settlement with them. Too bad that it makes more economic sense to put the screws to the lender then to continue making my monthly payments.
Easy student loan money has also led to enormous growth in the number of private colleges/universities, the number of college graduates with useless degrees and no jobs and 7%+ annual increases in tuition.
Let the bankers keep it up, when the nooses come out and their bodies dangle from the posts, we will laugh last.
ReplyDeleteBanks are scum.
ReplyDeleteI have a huge fraud extraction for a credit card. Called the bank. They won't tell me who the fraud payment was made to; must wait 30-45 days to find out - by mail!
If I didn't need CCs to conduct business I'd chop them all to hell.
Wow lots of women haters posting here. Been dumped too many times or something?
ReplyDelete"Wow lots of women haters posting here. Been dumped too many times or something?"
ReplyDeletePut the cock back in your mouth. No talking.
It's like with the IRS they send multiple letters and warnings before they take the $$$$...Sure I can see them collecting semi-illegally in the future but I'm sure this chick was warned by mail several times but decided to NOT call and make payment arriangements.
ReplyDeleteSeveral groups you can't mess with because they will get you State and Federal Tax collection agencies and Federally "Easy Money" school loans...They might not get you now but they will almost NEVER let it go...Even if settled.
(7 Years as a Tax preparer)