Do you work at Wells Fargo? Do you have an employment agreement and promissory note? Are you (understandably) thinking about changing jobs? Well, then, you may have a problem if Wells Fargo believes you owe money on the note.
I have been approached by a number of Wells Fargo advisors who have not only received demand letters, but have been told by the firm that their accounts will be liquidated to satisfy the debt Wells Fargo claims. The firm claims there is language in their documents that allows it to do this. And the firm does, in fact, exercise its believed right.
You know what happens? Checks bounce. ACATS requests are rejected. That mortgage payment you set up? It won’t be made. And I believe that Wells Fargo does this with glee.
What happens if Wells Fargo liquidates your account and takes your money? Basically, the only remedy is to file an arbitration to get your account assets back. And it is Wells Fargo’s risk, however minor the firm thinks it is, that the assets in the account don’t go through the roof while the arbitration is pending. But it is likely that the firm doesn’t care, since it wins the overwhelming majority of its promissory note arbitrations. So it feels it can play the bully with impunity.
What can you do to avoid this situation? Spend all your money (just kidding). You should take steps to minimize the assets that Wells Fargo can glom onto. You should consult with a lawyer in your state to find out what Wells Fargo can and cannot do.
That’s the view of one lawyer from Jupiter, Palm Beach County, Florida. I’m Marc Dobin.