Consumer complaint received 2020-11-25
Company: WELLS FARGO & COMPANY
State: MI
Product: Student loan
Sub-product: Private student loan
Issue: Struggling to repay your loan
Sub-issue: Can't get other flexible options for repaying your loan

Complaint:
In Wells Fargos Response to complaint XXXX, XXXX XXXX asserted that the deferment end date for my loan was XXXX XXXX years after my first disbursement and that no further deferments would be possible beyond that date. Additionally, XXXX XXXX asserts that my loans entered a payment deferment for duration throughout my XXXX  school pursuits claiming that the last of which began XXXX XX/XX/XXXX and ending XXXX XX/XX/XXXX. Per the MPN the maximum forbearance allotted was 5 years beyond the initial disbursement. Conveniently, the payment deferment that XXXX XXXX mentions began nearly 5 years after in XXXX. Each representative Ive spoken to to in-school deferment was quick to correct me in that what they offered was an in-school forbearance. Thus, XXXX XXXX statement regarding the payment deferment, is a distinct entity from the in-school forbearance as specified within my original MPN. 

The language of my MPN is quite clear in its distinction between a forbearance and other payment arrangements. The semantics which XXXX XXXX uses in the response to case number XXXX is intentional. XXXX XXXX would like the CFPB to believe that the granted delays in repayment that allegedly exceeded the 5 max were payment deferments, and thus fall into other types of modifications not covered by the forbearance acknowledged in the MPN. Unfortunately, Wells Fargos own documentation dated XXXX XX/XX/XXXX refutes XXXX XXXX statement to the CFPB and makes clear that what has been granted have been in-school forbearance. It is clear that Wells Fargo is doing everything they possibly can to prevent from granting the routine in-school forbearance that they last granted me on XXXX XX/XX/XXXX. The question is why? In a conversation with a WF representative during the week of XXXX XX/XX/XXXX, the individual struggled to explain why the decision was made, chalking it up to We just want to make sure the short-term relief we may grant is something that is payable for you over the long-term. The statement was curious because before returning to XXXX  school I made well into six ( 6 ) figures as an XXXX, substantiating my ability to succeed and repay the outstanding balance on the WF loans that has an aggregate balance of under two ( 2 ) months worth of pay per my last salary. The question again becomes why? On XXXX XX/XX/XXXX XXXX XXXX published an article quotes Wells Fargos website as stating beginning on XX/XX/XXXX, only customers with an outstanding balance on a Wells Fargo Private Student Loan are eligible to be borrowers on a new private student loan for the XXXX academic year. 

According to my XXXX  credit file, Wells Fargo XXXX  XXXX XXXX XXXX XXXX XXXX conducted a credit inquiry without my knowledge or consent. The timing of that inquiry is suspiciuous because it is within a two ( 2 ) week period of Wells Fargo 's initial announcement of pullback from educatonal lending. and within three ( 3 ) months befor announing their intent to divest their ten ( 10 ) billion dollar studnet loan portfolio. Given the hardship of the pandemic, it is quite clear of why they are seeking to divest at this time. 

What is equally as clear is that the " review '' by underwriting in XX/XX/XXXX in response to my request for an in-school forbearance for the period XX/XX/XXXX thru XX/XX/XXXX was not based upon the questions asked of me during the request review. Rather, it was based almost certainly in part by Wells Fargo conducting a credit pull on my account. To make clear Wells Fargo XXXX XXXX XXXX has never pulled a copy of my credit files before. My account is a closed-ended account. It is not an open-ended account like a credit card or revolving loan product. The credit inquiry to establish terms of payment and repayment where conducted at the time of loan origination/appliaction. A credit pull can not be used to detremine whether or not a student may continue to utilize in-school forbearance. It most certainly should not be used to deterine whether an in-school forbearance should be granted during a pandemic that has inflicted catastrophic medical and financial damage on households. Students are exceptionally vulnurable as they recieved no relief within the CARES act uther than cessation in payments on Federal student loans during the pandemic. 


By conducting a credit pull without my authorizaton, Wells Fargo circumvented my right of notice and opoortunity to be heard. In XXXX of XXXX Wells Fargo underwriters used that information to deny my request for an in-school forbearance. The " evaluation '' conducted by underwriting using the information I disclosed in my XX/XX/XXXX request over the hone was thus a " show. '' They'd already made their decision before I'd had the opportunity to be heard. This is not a common practice I have observed with any private student loan lender and it is certainly not something I would expect any loan servicer to do, especially during a pandemic. The bottom line is that Wells Fargo 's behavior at minimum is unethical. 

Ultimately WF willing to unethical practices, and willing to exact significant, long-term financial damage, on me, a minority male with a documented learning XXXX, one that holds or has held XXXX  clearances, one that has experienced long-haul symptoms from a XXXX XXXX, so that they stand a better chance at divesting their ten ( 10 ) billion dollar student loan portfolio before any post-pandemic economic onslaught. That is, Wells Fargo is willing to wreak havoc on the individuals in their student loan portfolio if it provides them with perceived short-term gains. The size of the WF student loan portfolio implies that what theyre doing could spell broad economic disaster for millions of individuals whose student loans originated with, or were acquired by Wells Fargo.

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