401k loan money apparently lost

[Jay968]

What is the name of your state (only U.S. law)? California
Not sure if this is the right area for this but here goes.
I submitted paperwork to take a 401k loan from the company my work has its 401k loans with and have that money ($16,000) direct deposited into my checking account. To make a long story short, neither that 401k company nor my bank has any idea what happened to that money even though it was indeed deducted from my 401k total. All numbers (routing, checking acct) are correct on the form and verified as such. The money was deducted from my 401k account Wednesday 11/4 and is nowhere to be found as of today 11/9.
The 401k company says it can take weeks to rectify this but in the meantime I have a property tax to pay and am in the process of refinancing my house (the reason I am doing the loan...to buy points).
Advice?
Thanks

 

[LdiJ]

What is the name of your state (only U.S. law)? California
Not sure if this is the right area for this but here goes.
I submitted paperwork to take a 401k loan from the company my work has its 401k loans with and have that money ($16,000) direct deposited into my checking account. To make a long story short, neither that 401k company nor my bank has any idea what happened to that money even though it was indeed deducted from my 401k total. All numbers (routing, checking acct) are correct on the form and verified as such. The money was deducted from my 401k account Wednesday 11/4 and is nowhere to be found as of today 11/9.
The 401k company says it can take weeks to rectify this but in the meantime I have a property tax to pay and am in the process of refinancing my house (the reason I am doing the loan...to buy points).
Advice?
Thanks

Have you initiated an inquiry with your bank to make sure that there wasn't some sort of glitch on their end? Is also possible that they messed up and issued a check instead of a direct deposit.

 

[Jay968]

Have you initiated an inquiry with your bank to make sure that there wasn't some sort of glitch on their end? Is also possible that they messed up and issued a check instead of a direct deposit.

The bank representative said he checked and saw nothing and basically said it wasn't the bank's responsibility. The 401k company said they would do an inquiry to find out where the money went but also said it could take several weeks to figure it all out. They have not issued a check, they are saying everything went correctly on their part.

Problem is, I have a property tax bill due in a couple of weeks, wanted to use a few thousand to pay my mortgage down a bit prior to refinancing (which we are in the process of doing) and I will have automatic deductions taken out of my paycheck starting in 2 weeks to start paying this loan back to the 401k company.

 

[Dandy Don]

Don't you just hate it when banks give you the runaround?

If you can't afford an initial consultation with a business law attorney, then file a complaint with the California Department of Business Oversight, which oversees banking and other institutions in your state.

http://www.dbo.ca.gov/About_DBO/organization/dfi.asp

 

[davew128]

Don't you just hate it when banks give you the runaround?

If you can't afford an initial consultation with a business law attorney, then file a complaint with the California Department of Business Oversight, which oversees banking and other institutions in your state.

http://www.dbo.ca.gov/About_DBO/organization/dfi.asp

This isn't a banking issue its an ERISA issue.