Tuesday, November 25, 2014 Mac Slavo activistpost.com
The recent actions of mega behemoth Wells Fargo show us just why so many people are distrustful of large financial institutions. The bank, which claims it will help you achieve what’s important, has done exactly the opposite in the case of Rosemary Ronstein.
At the height of the 2009 financial crisis Ms. Ronstein was facing a home foreclosure. After her husband passed away that same year the widow was searching through personal records when she happened across a 30-year old CD purchased by her husband in 1984 for the sum of $18,000. The CD, which offered the bearer a 10.9% interest rate and renewed automatically until it was cashed in, was originally issued by First Interstate Bank, an entity that has since been acquired by Wells Fargo.
At the time, Ronstein faced the real possibility of having her house seized for failing to pay her mortgage. The CD was like a dream come true. All her problems would be solved, which is exactly the reason why her late husband originally purchased the CD and gave it to her for safekeeping.
But when Ronstein arrived at Wells Fargo to trade in her financial instrument, she says that not only did the bank refuse to make good on the Cash Deposit, they practically laughed in her face.
But when she tried to get the money that she believes is rightfully hers, she the bank “practically almost laughed at me.”
KPHO claims that Wells Fargo refused to comment on the story but claim in court documents that it had no records of the CD and believes it’s possible that it could have already been paid out at some point in the past, pointing out that First Interstate had a policy of allowing customers to retain paid-out certificates. The widow insists that her late husband never cashed out the CD, while her lawyer notes that the CD states that it must be “presented and surrendered” in order to be redeemed. He claims that it’s not enough for Wells to cite a lack of documentation on its part as evidence that the CD had been paid.
“Given the passage of the time, the bank doesn’t have a record of it,” says the lawyer. “And so really what needs to be decided by the court is, what’s the import of the lack of a record in the face of the instrument?” (Source: Consumerist)
Peter is a Real Estate Broker at Professional Brokers Group (License No. 023000), covering the greater Short Sale area of Colorado.
Please fill out the contact form below if you wish for Peter to contact you.
[contact-form-7 404 "Not Found"]
Helping Short Sale Realtor home owners avoid foreclosure with a short sale.
Peter Janisch specializes in short sales in Short Sale Realtor. I am your Short Sale Realtor Short Sale Specialist Realtor and Short Sale Realtor loan modification and distressed property expert. This article and content is for general informational purposes and may not be accurate. This should not be taken as legal advice, technical or tax advice under any circumstance. Seek legal advise and representation in all legal matters.