Consumer complaint received 2019-08-05
Company: WELLS FARGO & COMPANY
State: MN
Product: Mortgage
Sub-product: VA mortgage
Issue: Trouble during payment process

Complaint:
Our homeowners insurance was increased by a substantial amount, so we shopped around for a possible switch for a new homeowners insurance policy. We notified Wells Fargo on XX/XX/XXXX that we were not switching homeowners insurance companies, and pay the previous company we have been using the past several years. The due date for the homeowners insurance was XX/XX/XXXX. 

I was shocked to see a letter from Wells Fargo on Monday XX/XX/XXXX from Wells Fargo saying that our homeowners insurance had lapsed. Since we had allowed our homeowners insurance to lapse, Wells Fargo was going to be purchasing homeowners insurance on our behalf, which they stated in the letter could be a substantially higher rate that we had been paying. 

Our home mortgage is a VA Home loan, and this type of mortgage requires an escrow account for the entire duration of the mortgage. So now Im confused, as Wells Fargo should be paying for the homeowners insurance. The money was taken out of my escrow account, but somehow, they did not submit payment to the insurance company. 

Wells Fargo was contacted regarding this issue, which sounds a quite familiar to the scam that they were busted for with fraudulent insurance on their car loans. Wells Fargo was clueless as to why there was such a delay in making my homeowners insurance payment. They assured they would get back to me, and payment was on the way to the insurance company. Never heard back form Wells Fargo. 

I contacted my homeowners insurance company and worked with them telling them that Wells Fargo says the check is in the mail. The insurance company gave me a week to get payment or the policy would be cancelled. 

I called Wells Fargo back the next day, and it turns out they didnt actually mail the payment to the insurance company until XX/XX/XXXX. Meanwhile, Im getting more letters from Wells Fargo saying they were purchasing insurance on my behalf and I would be billed for it. 

I called my insurance company back and just paid the homeowners insurance myself over the phone so that it would not lose the policy. I then forwarded the receipt of the full payment from the homeowners insurance to Wells Fargo so I could prove that the homeowners insurance was paid. 

Wells Fargos check didnt arrive to the homeowners insurance company until XX/XX/XXXX. 

I filled a complaint with Wells Fargo directly, and they said they would investigate the situation. They said they would be done by the beginning of XX/XX/XXXX. I received a notice that they couldnt find out why this happened and they would investigate more. 

I then received a letter from Wells Fargo dated XX/XX/XXXX from XXXX XXXX an Executive Resolution Specialist with the Customer Care and Recovery Group. In the letter it states : We found that when you spoke with us on XX/XX/XXXX, to confirm that you were staying with XXXX XXXX XXXX, our representative removed the disbursement stop ; however additional account maintenance was needed. The additional account maintenance was completed on XX/XX/XXXX, and as mentioned above, payment was disbursed the same day. 

Wells Fargo has never said what account maintenance was needed that took over a month. I have called Wells Fargo to ask for clarification on their account maintenance and have not heard back. 

Wells Fargo has refused to admit fault for this, and will not further communicate with me regarding this issue as they consider it resolved. 

Wells Fargo was fined over {$XXXX} XXXX  by the federal government for this kind of activity in XX/XX/XXXX on auto loan and mortgage abuses. It feels to me like Wells Fargo is running anther scam, and was hoping I wouldnt have the money to pay my own homeowners insurance so that Wells Fargo would have picked an insurance company on my behalf with a substantially higher rate.

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 non-monetary relief