Consumer complaint received 2024-01-10
Company: WELLS FARGO & COMPANY
State: VA
Product: Credit card
Sub-product: General-purpose credit card or charge card
Issue: Advertising and marketing, including promotional offers
Sub-issue: Confusing or misleading advertising about the credit card

Complaint:
I opened Wells Fargo credit card in XXXX XXXX XXXX to pay for repairs on my mothers home to replace the HVAC and upgrade the power panel. The charge amount was {$11000.00}. The first statement automatically set a minimum monthly payment amount at {$400.00} and stated the balance must be XXXX at the end of XXXX months to avoid deferred interest. I assumed that Wells Fargo had set the monthly payment amount of {$400.00} to ensure my balance would be XXXX by XXXX XX/XX/XXXX. I followed the banks recommendation for paperless reporting. At this point, I didnt see a need to frequently log in and monitor my accounts status. 

In XXXX XXXX XXXX I had to replace the HVAC in a house utilizing XXXX in XXXX, Va. The salesman suggested I utilize the same Wells Fargo Card with full payment due in XXXX  months. I agreed. An amount of {$7200.00} was charged in XXXX XXXX XXXX and Wells Fargo adjusted my monthly payment to {$630.00}. 

In XXXX XXXX XXXX I compared the Wells Fargo monthly payment to my deadline to be at XXXX balance and realized this monthly payment set by Wells Fargo would not get my balance to zero. I payed {$2000.00} in XXXX and followed one-time payments of {$1000.00} each month thru XXXX XXXX XXXX 

In XXXX XXXX XXXX I logged into the account and was shocked to see my balance owed was over {$10000.00} and had increased over {$4000.00} in XXXX and there was an interest charged the past few months of XXXX and XXXX of about {$130.00} each month. At this point I payed a lump sum of {$5000.00}. Today, XXXX XXXX XXXX I made the final payment over {$4000.00} to get the balance to zero. 

Several issues concerning this account that I would expect of a customer to bank partnership, ( 1 ) The bank should set a monthly payment to ensure the balance reaches XXXX by the required date to avoid deferred interest ( Note : I have had several other 0 % interest accounts where the bank sets this payment to ensure it reaches XXXX balance ), ( 2 ) If this monthly amount isnt maintained, a notification should be sent out via e-mail or text ( similar to a checking overdraft notification ), ( 3 ) At the XXXX  day point before the account should be XXXX, the bank should notify the customer of the date and balance due to allow the customer to arrange to make the payment. ( Note : The {$11000.00} balance being payed at {$400.00} a month, set by Wells Fargo, would only decrease the original balance by {$7200.00} after XXXX  months leaving a balance of {$4200.00} due to avoid deferred interest which most consumers dont have on hand ). ( 4 ) The deferred interest rate being applied of 28.99 % is significantly higher than any bank card interest rate.

I have a long history of banking with Wells Fargo and would appreciate some consideration and adjustment to this penalty applied to this account. Please consider some adjustment to this deferred interest / penalty.

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