Consumer complaint received 2023-07-12
Company: WELLS FARGO & COMPANY
State: NV
Product: Payday loan, title loan, or personal loan
Sub-product: Installment loan
Issue: Getting the loan

Complaint:
This is my 3rd complaint for the same issue. If clarification is needed on the circumstances. please refer to complaint XXXX and XXXX for those details. The reason I am filing a 3rd complaint is because the issue still has not been resolved. 

" 1002.6-RULES Concerning Evaluation of Applications '' ( 6 ) Credit history. To the extent that a creditor considers credit history in evaluating the creditworthiness of similarly qualified applicants for a similar type and amount of credit, in evaluating an applicant 's creditworthiness a creditor shall consider : ( A ) The credit history, when available, of accounts designated as accounts that the applicant and the applicant 's spouse are permitted to use or for which both are contractually liable; * ( b ) On the applicant 's request, any information the applicant may present that tends to indicate the credit history being considered by the creditor does not accurately reflect the applicant 's creditworthiness ; and* ( C ) On the applicant 's request, the credit history, when available, of any account reported in the name of the applicant 's spouse or former spouse that the applicant can demonstrate accurately reflects the applicant 's creditworthiness. 

Paragraph 6 ( b ) ( 6 ) official interpretation 1. Types of credit references. A creditor may restrict the types of credit history and credit references that it will consider, provided that the restrictions are applied to all credit applicants without regard to sex, marital status, or any other prohibited basis. **On the applicant 's request, however, a creditor MUST consider credit information not reported through a credit bureau when the information relates to the same types of credit references and history that the creditor would consider if reported through a credit bureau XXXX ** The issue is that back in XXXX i requested wells fargo to consider additional information that was not reported through the credit bureau because my credit report was not an accurate representation of my creditworthiness. The information I provided was directly related to my reported credit history that Wells Fargo based its decision to deny my loan on, and is information that would be considered by Wells Fargo if it was on my credit report. Wells Fargo did not consider the information I provided because it is Wells fargos.policy to only consider information on an applicant 's credit report, nothing else. Wells Fargos policy does not comply with the rule cited above. When it comes to information not present on my credit report that is relevant to the decision, Wells Fargo must consider it at my request. 

Wells Fargo 's then made the unfair decision to deny my application with only the information on my credit repor when there was reason to believe was incorrect and/or incomplete and didnt truely represent my situation.. 

As stated by Wells fargo, here are the reasons my loan was denied in XXXX. 

XXXX application Legal or other action taken against you or your accounts ( For example, collection, tax lien, or charge off ] Serious delinquency and public record or collection filed Too many accounts with balances Proportion of loan balances to loan amounts is too high At that time, i tried to explain that I was a member of the sweet class and they were in the middle of settlements and my student loans were set to be forgiven in full. In XXXX My student loans made up around XXXX percent of my total debt. Without the student loans, i only had around XXXX total in debt in XXXX. 

I also tried to explain that any delinquency and the charge off on my credit report resulted from what happened between XX/XX/XXXX and XX/XX/XXXX. During those months I faced a series of events that most people would be financially affected by. High risk XXXX, break up, moving, job loss. Serious illness and then the death of my child. All of those things happening back to back and it is unlikely that will happen again. At that time, I didnt have enough credit history to get the loan I needed from my bank to prevent hardship or defaulting on my car loan. Had I got the loan I wouldn't have been as severely affected financially. Being turned down for such a small loan during the worst time of my life after entrusting us bank with my money for years is the reason I switched to Wells Fargo shortly after. 

This appears to be a cycle I will forever be stuck in. Wells Fargo will not approve me because of the damage caused by my inability to get the loan from XXXXXXXX XXXX  that I needed to get me through a tough time and prevent an impending financial catastrophe. The damage caused by Wells fargo 's denial will prevent me from getting a loan if I ever need one in the future I also had 2 accounts opened fraudulently in my name. One has been removed, the other was supposed to have been removed, but never was and is in collections. I recently called them to find out why it wasnt removed l and they now are saying I need a police report. It's been almost 6 years, I don't even know if I can't file one after so much time has passed. 

I had 10 open credit accounts on XXXX in XXXX. All XXXX of them had perfect payment history, XXXX of them had a XXXX balance. The balance on the other XXXX accounts was under XXXX collectively. I was working on building my credit, i had to open accounts to do that. How is the number of accounts that i had open relevent? What if I had XXXX account with a XXXX balance instead of the XXXX accounts with under XXXX? This is discriminatory. Wella Fargo knows that it has lent money to people that have more than XXXX accounts with balances that total more than XXXX. furthermore, all of my account balances were going to be paid off with the loan, which means that had Wells Fargo considered and approved the loan. The only debt I would currently have is the loan and I would have XXXX credit accounts with XXXX balance right now. 

There was no reason to deny my loan in XXXX. In reality. XXXX I had a credit score around XXXX. I had XXXX in total debt. Some negative information on 1 account 6 years ago from a personal crisis and I paid XXXX in full to settle that account when i was on my feet again. Since then I demonstrated nothing but exceptional payment history on XXXX accounts for the last 4 years. With that information, it is more than evident that the negative information on my credit history did not happen because I am irresponsible, but because I cant get approved for a loan every single time I need one. 

My subsequent applications are irrellevent. Wells Fargo didn't follow the rule above starting in XXXX. That failure ultimately resulted the financial crisis I am currently experiencing because I was unable to pursue opportunities i had available to earn an income little by little my life and all the progress I have made in the last 5 years has been destroyed. 

Wells fargo also stated it had confirmed both of my rate checks in XX/XX/XXXX which returned offers and the XXXX rate check that denied an offer. 

It failed to mention confirmation of the rate check in XX/XX/XXXX that did not return an offer. I would like an explanation in wells fargos response specifying reason I was given an offer in XXXX then denied an offer in XXXX when nothing had changed on my credit during the month and a half period in between those 2 dates. 

Wells fargo also did not include confirmation of the rate check I did XX/XX/XXXX. 

Wells fargo then stated my XXXX rate check expired on XX/XX/XXXX and they were unable to give it further consideration. True, but Being that the response was dated XX/XX/XXXX. My rate check from XX/XX/XXXX was not yet expired therefore further consideration still could have been given. 

Because the XX/XX/XXXX rate check is now expired, I am informing you that i will be performing another rate check upon submission of this complaint so you have an open application. However, being that it was Wells fargos policy that perpetuated the current damage on my credit report, I should be evaluated in accordance to my financial situation in XXXX since that is when wells fargo did not comply with the rules that govern it. It's the right thing to do. 

Wells fargo stated it gives all customers fair and consistent treatment. In reality, I'm not being denied for any of those reasons wells fargo listed. I'm being denied because of my position. Perfect example of that is that, after i offered to secure the loan with the title to my car in my last complaint, Wells Fargo 's added the fact that I don't have assets in a Wells Fargo account as a reason for denying my XXXX application. First, why was that not a reason listed in the XXXX denial. That fails to demonstrate consistency. 

Second, How is that requirement fair when it ultimately results in the exclusion of every economically disadvantaged applicant that banks with Wells Fargo. That results in disparate treatment if the only the customers who are fortunate enough to have assets in a Wells Fargo account are worthy of receiving a loan through Wells fargo? If that's the case, Wells Fargo should not include money deposited by customers with no assets into any calculation that benefits Wells Fargos bottom line, this way the relationship is mutually beneficial and customers aren't being used. 

Im sure that wells fargo is aware that 4 out of 5 credit reports contain errors. Even more, Only 2 percent of disputed errors get resolved. How Does wells fargo treat its customers fairly, if customers are given no consideration when they request Wells Fargo to consider information that is not on their credit report? 4 out 5 people who apply for a loan with your bank are not treated fairly because they can not explain away an error that they can't get corrected with the agency reporting it. How is it fair to anyone to be evaluated with a tool that contains errors XXXX percent of the time? 

Consistency often gets confused as being fair when it really is not the case in all situations. Consistency is only fair when it's applied to a group of people who are all the same. It is not fair when applied to different people that have different financial situations and that have traveled down different paths in life. Consistency, in that case, Will always result in exclusion of 1 or more groups within the whole. Consistency also doesnt result in fairness if credit reports are the only tool used to evaluate an applicant because credit reports are consistently flawed. If you want consistency to be fair you need to take a different approach to evaluating your applicants. One that considers each persons individual circumstances and doesn't rely solely on reports from sources that have a history of reporting inaccurate information because that leads to unfair treatment and unreliable decisions. 

None of the negative information came from irresponsibility or lack of concern about my finances and none of it would be there if i was able to access the money I needed when I needed it. My credit isnt perfect and it never will be if i have to be financially ruined every time a major event occurs in my life simply because of damaged caused by the previous denial. I will also never have assets if this is going to be the cycle I have to go through for the rest of my life. 

I ask that Wells fargo hold itself accountable for its failure to comply with the law and take into consideration the harm it caused me. I will continue to file complaints about the issue until it is efficiently resolved.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation