Product: Vehicle loan or lease

I had this auto loan with my wife from Wells Fargo since XX/XX/XXXX. All payments paid on time. Car payment is due on the XXXX of each month. Car was totaled in XXXXXXXX XXXXWe did keep making all payments on time. 
On XX/XX/XXXX & XXXX, XXXX we did make contact with the Wells Fargo Auto Loan Customer Service via telephone. We did explain that a payment for {$37000.00} from our insurance company was imminent. We did ask if this payment would also satisfy the XXXX monthly payment. We were assured that the monthly payment would NOT be required for the month of XXXX. We were instructed to resume normal monthly payments in XXXX. The {$37000.00} payment was posted on XX/XX/XXXX and we did not make the XXXX monthly payment as instructed. We are paperless and we log on and make the payment on or about the due date. Upon logging on in XXXX there was no indicated missed payment ( this is because we just happened to log in prior to the XXXX due date ). Thus, ( unknown to us ) our XX/XX/XXXX payment was not applied to XXXX and instead was applied to XXXX. ( The XXXX payment was not documented 30 days late because we paid 4  days prior to the XXXXXXXX XXXX day overdue due date in XXXX ). At this point the fix is in and the glitch is opaque to us. We made our XXXX payment on XX/XX/XXXX ( 10 days prior to the XXXX due date ) and again no overdue payment was indicated when we logged in. However, this payment was then applied to XXXX. We made our XXXX payment on XX/XX/XXXX which should NOT have been 30 days late but it is documented more than 30 days late because it was applied to XXXX. At this point the XXXX is realized so we made another payment on XX/XX/XXXX for XXXX and another payment on XX/XX/XXXX for XXXX. Well Fargo is currently reporting us 30  days late for XX/XX/XXXX. Wells Fargo did bother to attempt to notify us of the missed XXXX payment until late XXXX. Wells Fargo applied the entire insurance settlement to the principle but never disclosed to us that was the protocol. Wells Fargo did instruct us incorrectly. Wells Fargo denies that they ever instructed us in any way. Wells Fargo refuses to release any of the multiple phone conversations we had with them prior to the XXXX due date. They are lying and we believe that by now they have either altered or cut the recorded conversation. Wells Fargo failed to provide complete and accurate information to this consumer on multiple levels : # 1. ) Incorrect instructions to the consumer in XXXX, # 2. ) Zero timely notification of offset payment cycle completely opaque to the consumer logging into the paperless payment portal prior to the due date for the payment. This a clear and present unfair, deceptive, and abusive practice. Account is up to date and was never paid late since. 

This late payment is a terrible indicator of our historical credit worthiness and has caused our credit scores to plummet. Careful analysis of this account clearly shows a record of studious on-time attention. Who would maintain a perfect record and then mess it up at the end unless there was an obvious anomaly? It is clear from the account history that we were led to believe the large XXXX payment was to be counted for the XXXX monthly payment as well. 

In response, all of our credit cards have lowered their limits on us causing a skew in our debt to limit ratios and further damaging our credit. 

We have children and we are currently applying for a mortgage to purchase a home. The mortgage applications are denied and the reasoning is linked solely to the aggregate damage caused by this XXXX on our credit report ( which is the only detrimental item on our credit report ).