Expert: Regan Shinski - 9/19/2009

Question
i have a bank account with wachovia.i also have a equity line with wachovia.they know that my social security disability is direct deposited.i was behind 30 days on one payment.they decided they would take it upon themselves to take it out of my checking acct.i called them and told them it was social security disability and they could not do that it was exempt.they said "oh my God that is right we will put the money back in.it has been a week and they still have not put it in.i have called for 5 days trying to get this resolved.the money they took out was the money i had reserved for food for 3 people.a church helps me with food,enough to last a month.they bounced the check i had written to the church for food.i do not have food now.i called back and told them that was my food money please put it back.yes maam we sure will.haha they have not put it back yet.in the meantime i have no way of feeding my family.i have a son that is disabled and the other has been laid off.my question can i do something to make them pay for this or just suck it up stop crying over spilt milk?thank you in advance.it is exempt right???

Answer
Hi Susan:

I feel so sorry for you to be in this position!  I must say, I have read mixed opinions on if they can do that or not, but the more I read, the more I am convinced Wachovia is in error and you should fight this - HARD!

The best evidence is at this web page:

http://www.ssa.gov/deposit/DDFAQ898.htm

Scroll down to the last question.  It addresses your situation specifically.  There is also a link to the exact federal statute, but this is a government website and it addresses your issue very specifically.  I would deem it very reliable.  Your position is REALLY strong if you have not co-mingled funds.  I would push hard at them.  Call anyone you can think of - branch manager, CEO of Wachovia, media, congress person, etc.  They  should also pay for any overdraft or other damages you have suffered, possibly including the issue of causing financial catastrophe in your day-to-day life.  I believe you could find an attorney that would take this case pro-bono as well.

Certain states also have specific statutes against this.  I found additional laws in New York, Indiana, and Illinois very easily.  I would check your state for additional laws of protection.

The only thing that could be a stumbling block is that I'm sure you gave them permission to take the funds.  You may not know it, but it's pretty common when you sign up for a loan or other bank account.  The agreement has statements in there that give the bank permission to do this type of thing.  Hang tough!  A bank contract cannot supercede federal law.  (If the bank puts it in their contract an agreement to buy cocaine from you, does that make it legal?  Of course not, same thing with breaking THIS federal law!)

Good luck.  Please let me know how it turns out or if you need additional help!  Just tell me what happened by dropping me another "question" in this forum.  I hope it works out and will pray for you that it does :)

Regan