Consumer complaint received 2023-10-14
Company: WELLS FARGO & COMPANY
State: CA
Product: Checking or savings account
Sub-product: Checking account
Issue: Managing an account
Sub-issue: Banking errors

Complaint:
XXXX XX/XX/, I received a text message that my direct deposit posted to my account. I logged into my account to see if the amount reflected in the text and read the entry as that from my employer. It was in fact, my biweekly payroll deposit made early by XXXX XXXX early payday program. Ive been initiated payments to post via online bill pay and made other payments from other merchants as well. The following day, the payment posted and was deducted from my account for XXXX XXXX XXXX. They sent me an email, verifying their receipt of said payment. On XX/XX/XXXX, I logged into my account and surprised to see that I was had more than {$300.00} in my account. This was not reconciling with the amount of my account the previous night, which was significantly lower than {$100.00}. It was quite possibly less than {$20.00}. So I was surprised to see more than {$300.00} in my account. I thought perhaps it was my direct deposit from the franchise tax board as they just authorized my tax refund to be made. so I paid a couple of bills and then transferred money into my savings account. At the end of the day, I received an email from my bank, Wells Fargo, advising me of an insufficient funds notice, and that the payment that I made to XXXX XXXX XXXX was returned. I was in utter horror and shock as I saw this payment deducted the day before. Further, I was not notified of any kind of a failed attempt, nor did I see any kind of activity in my bank yesterday as I logged in several times, indicating any kind of deficiency or lack of funds. it was my payday yesterday. I got paid from work, and I paid all of my bills. When I spoke with Wells Fargo later that day, XXXX informed me that there were some issues with the direct deposit, that my credit card payment was not declined or returned, and that there was a glitch in the system. he said that he had good news he told me that the system would rectify itself on Monday and that I would be in the deficit for the amount of the return to credit card payment. This was not good news to me. As a detrimentally relied on all of the representations made by Wells Fargo by logging into my app, and seeing the positive balances, and seeing the running balance, as the day went on, and I paid my bills. further, if theyre the direct deposit did not post until today, then, therefore, every single transaction that I made yesterday would be considered insufficient, and not just the returned credit card payment. So that does not make sense in and of itself. If my direct deposit was only credited on XX/XX/XXXX, then why do I not have that set amount in my account right now? if my account was insufficient yesterday on XX/XX/XXXX, and the amount that was returned was approximately {$280.00}, then why do I have {$400.00} total between my checking account and my savings account? I have enough money. I have not had any other deposit. So mathematically, I could not have been overdrawn or had insufficient funds. Their argument fails. And now Im going to be experiencing adverse treatment from my credit card because theyre going to see a return payment. That payment further affects the reporting to the credit bureaus as it was the last day of my billing cycle. I finally was able to pay off my balance before the billing cycle so that when they report to the credit bureau, my credit usage will be XXXX. That will positively influence my credit score. I am trying to work very hard to improve my credit. And this mistake piles Wells Fargo has, extremely severely adversely affected me. And now they want to just keep saying that it was returned because of insufficient funds and that my direct deposit only hit today. Well, if thats the case, then every transaction should have failed. But at no time have I been in the negative!

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 monetary relief