Consumer complaint received 2017-09-21
Company: WELLS FARGO & COMPANY
State: CA
Product: Mortgage
Sub-product: Home equity loan or line of credit (HELOC)
Issue: Trouble during payment process

Complaint:
DETAIL : My name is XXXX XXXX, age XXXX, at XXXX XXXX XXXX XXXX, XXXX XXXX, CA. XXXX, phone ( XXXX ) XXXX. I obtained a XXXX XXXX dollar first position HELOC with Wells Fargo Bank about 9 years ago, loan # XXXX on my personal residence at about 50 % LTV ( loan to value, up to 80 % is acceptable ) at a very good interest rate of 1 % under prime. These HELOCS have a 10 year draw period, then no advances are possible and the balance is paid off monthly in an amortized fashion. I needed that credit line for business and was fully qualified with a FICO credit score about 800 or higher ( where it probably is now ). 

Wells Fargo wrote me that they closed my HELOC to any advances on XX/XX/XXXX with a {$780000.00} balance, because they believed I " would be unable to fulfill my repayment obligations '' of about {$1500.00} per month interest payments with no evidence of that claim at all. They just made that up, perhaps because my very low interest rate was no longer available. MY REPAYMENT ABILITY PROOF : One year later by XX/XX/XXXX I 'd paid the balance down to {$660000.00}, so {$120000.00} of principal not required to be paid I had paid. By XX/XX/XXXX a year later another {$450000.00} of principal was paid and the principal balance was down to {$210000.00}. On XX/XX/XXXX another year later my balance was paid down to {$120000.00}. By XX/XX/XXXX the balance was paid down to {$8700.00}. What XXXX Wells Fargo are! 
I buy and sell real estate, and was harmed by the loss of access my HELOC that I needed as a tool. 

I contacted Wells Fargo repeatedly, and got many other excuses like " you gave your account number out for others to wire funds into ''. That is not prohibited in the HELOC terms I signed, and I did at other times with no problems, so that was false. Then a forged check for {$250000.00} made out to me that I never saw or signed arrived. They refused to tell me the victim at what branch or how this check was received. I reported this to their Fraud Investigation Division and to the FBI. They had illegally deposited it. They had assisted with a crime. XXXX told me you could tell in 3 seconds looking at a copy of that check that it was a forgery, but Wells Fargo deposited it instead, without my signature on it as required, and then did n't tell me that check that was supposed to be a wire was not good until a week later, while the crook I believed did this was disappearing! Wells Fargo then stalled on supplying me a photocopy of the forged check put in my account when I demanded to see it. They told me to wait a couple weeks and I 'd get it in the mail! A quarter XXXX dollar loss of my home! I demanded they send a copy to my local branch that day to immediately to see it so I could contact the FBI. The FBI in Virginia then called me back to ask Wells Fargo to confirm for them that the check was fraudulent. Wells Fargo ( XXXX XXXX ) refused! Wells Fargo would not cooperate with the FBI. I contacted the XXXX County Sheriffs Department and made a report about the fraudulent check deposited into my account without my authorization. The prime suspect had served time for robbing a bank 20 years earlier ( this was in the newspaper ). I went to court with that person I had given my account number to and got a {$240000.00} judgement XX/XX/XXXX in XXXX County, California Superior Court against him. I 'd like to give Wells Fargo that judgement for their collection department and have them return the {$240000.00} I lost due to Wells Fargo 's antics. 

When I demanded reinstatement, then Wells Fargo made up more excuses to keep my HELOC closed. They said that my home value had dropped with the normal market decline ( XX/XX/XXXX through XX/XX/XXXX ). They had done no appraisal and had no analysis to show me. My home value was about the same, but even if it had dropped 20 % so I would still at 70 % LTV, far below their up to 80 % loan allowed to start a HELOC. Presently that credit line would be at 55 % LTV ( very low ), but they still wont reopen my credit line access. An attorney told me it would be difficult to sue Wells Fargo, as their defense method is to fill a room to the ceiling with paperwork and delays, so an individual can not afford the legal cost to sue them. Wells Fargo kept telling me I could not appeal their decision, then switching who I could talk to. One of the last was XXXX XXXX in XXXX, Arizona ( XXXX ) XXXX at their XXXX Center. She sent me a letter saying that " to protect our interest in the collateral she decided " to keep the account restricted '' ( to any advances ) and " in the meantime, our decision stands ... you had a material change to your financial circumstances which allows us to prohibit future advances ''. What material change? They cited nothing. They had plenty of collateral! There was also a XXXX XXXX ( XXXX ) XXXX in XXXX, Montana they had talk to me. She said I was not allowed to discuss this with anyone but her, and would give no superiors names. 

Later I contacted a XXXX XXXX ( XXXX ) XXXX at the executive office of 'Wells Fargo Executive Private Banking Direct '. I wo n't go on and on, but I kept written records of my conversations. For example I left phone messages for XXXX XXXX on XX/XX/XXXX, XX/XX/XXXX, and XX/XX/XXXX. She finally called me back XX/XX/XXXX at XXXX XXXX. She said on their recorded line " this account is no longer available. You 'd have to re-apply and qualify for a new loan under the present interest rates, and that would be a second lien on top of your first lien with us ... I 'll have XXXX XXXX phone you ... " But this was a 40 year agreement- a 10 year draw period plus a 30 year amortized repayment period. That would have doubled my interest rate. XXXX never called me. It was misdirection to an lower agent, as she was only the XXXX XXXX fraud investigator that I had asked to contact in the first place, who certainly could not make executive decisions about the legality of Wells Fargo closing my credit line for reasons that were not allowed under the loan document. I think she worked from home in XXXX, for example, a low level employee whom no one around would hear her conversations, who could later claim investigation privacy if these Wells Fargo improprieties were investigated. 

I manage XXXX XXXX. Wells Fargo continued to give me more fabricated excuses for wanting my low interest rate HELOC off their books. Yet they got my business with this low interest rate. Then they said I had a derogatory item on my credit record. I ran my credit report and found out it was a tiny {$500.00} small claims judgement about a ruined carpet that I had already paid by check. I could get a copy of that check for proof it was paid, but they did n't care. Then they said I was in litigation with a tenant. I was, I sued and had XXXX XXXX dollars of insurance for that, but again Wells Fargo did not care to see that. They were completely protected by their secured lien on my home with adequate equity anyway. Wells Fargo cant have a standard procedure of closing anyones HELOC that becomes involved in litigation. 

Along with millions of other Americans, Wells Fargo also without my knowledge or authorization opened a credit card account in my name. I saw it on my credit report I ran recently. I never saw the card and never used it, as my credit record shows. No wonder the Wells Fargo president had to step down. After claiming I was financially at risk of not being able to pay my secured credit line on my home with them ( I was never late ), then they opened up an unauthorized unsecured credit card in my name without my knowledge or permission! They obviously did not believe their own I would be unable to fulfill my payment obligations rhetoric! Actions speak louder than words. 


This is not a legal point, but in the lobby of my closest branch in XXXX XXXX, CA is a 4 foot by 10 foot sign hanging over the tellers I took a photo of that has been there for 15 years that says : " We have one very powerful business rule. 
It is concentrated in one word : COURTESY. 
XXXX XXXX XX/XX/XXXX ''. 

What hypocritical false advertising. Id be happy to supply the photo. I do bank with other institutions. A few are excellent. However if you get a loan with Wells Fargo, you are forced to open an account with them for 'automatic payment '. Then they can keep trying to sell you their other 'services ' with additional false advertising.

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