NY state seizing bank accounts without warnings

Discussion in 'Chit Chat' started by pupu, Apr 2, 2010.

  1. pupu


    One of my older relatives had a saving account was just taken over by NY state.

    Account was actively paying interest monthly and there was no warning.

    4 month after the fact he got a letter telling him the account was withdrawn.

    A new shameless tactic to increase revenues for failing states?
  2. aegis


    I call bullshit.
  3. Daal


    Dont be shocked if your relative "surprinsly" turns out to be guilty of money laundering or drug trafficking
  4. TGregg


    It's called a "judgement".
  5. It's called an "attachment." Sometimes it's to satisfy a judgment, but you would likely know there was a judgment against you because there would be a court order.

    In your relative's case, it's by the state of NY. I would guess this might be tax related, as the state tax collector needs no court order to take your bank account, just some satisfaction of a due process standard which means they send a couple of letters to your address saying you owe back taxes and a deadline to respond.

    Of course there's nothing in the letter saying they'll attach your accounts. It's always by surprise. You might take your money out if you knew ahead of time. To add insult to injury, the bank will charge a fee to hand over the money to the state so the balance goes into the negative.

    I believe states that are hurting for money get quite aggressive in their tax collections. Much the same at the local level with the police issuing more tickets (backdoor taxation).
  6. Did you check whether he's a tax scoflaw? Theres trillions in
    taxes owed not government but taxpayers.
  7. pupu


    Sorry, but no bullshit, criminal or tax related problems apply here.

    The probable reason given by the bank was inactivity(they're not quite sure themselves)

    The account got auto renewed (CD) and paid interest monthly for years.

    One day, out of the blue, a statement in the mail saying the account was withdrawn 4 months ago.
  8. Escheat? That's what it sounds like the bank is claiming. Research escheat laws in New York. That's the only thing I can suggest. Good luck.