Consumer complaint received 2023-07-16
Company: WELLS FARGO & COMPANY
State: FL
Product: Mortgage
Sub-product: Home equity loan or line of credit (HELOC)
Issue: Trouble during payment process

Complaint:
I would like to enclose copies of documents for you to review and file a complaint against Wells Fargo Bank NA. I have been working on these problems with Wells Fargo Bank NA for several years. Many hours have been wasted in letters, phone calls and trips back to the bank because they apply the payment to the wrong account or apply the entire monthly payment of finance charge only! They claim that this is the way the computer processes the payment if it is not made on the due date of the XXXX. However, they are failing to set up their computer so it understands that I have a ten day grace period according to my contract. This is being ignored!! 

I have an Equity Line loan with Wells Fargo Bank NA! It started out being a draw type loan and it matured in XX/XX/XXXX after ten yrs. In XX/XX/XXXX it became a fixed rate mortgage for 30 yrs. with making monthly payments of principal and interest. A statement in the Agreement filed of record on XX/XX/XXXX states During the Repayment Period, I will pay a late charge equal to the greater of XXXX dollars or 5 % of the sum of all Fixed Rate Advance Minimum monthly Payments if my payment is more than 10 days past due. My monthly payment is {$770.00} x 5 % = {$38.00} max. States that my monthly payment is due on the XXXX day of each month during both the draw and the repayment periods with a 10 day grace period. This would make my monthly payment free of a late charge if made no later than the XXXX and should be posted at a normal basis, i.e., regular principal and interest applied. 

I sent a certified letter to WF on XX/XX/XXXX, received a reply that they are in receipt of. They have 90 days to fix these errors. I have not heard any more from them and no corrections have been made. Numerous errors have been made since XX/XX/XXXX, monthly payments of P & I have been applied as interest/finance charge only. They also apply a late fee with every error they make. I must call and complain to get it fixed, they try to fix it and end up making a mess that creates more problems. I finally get all the late fees removed, but there are still many errors and have never addressed them. Bear in mind, I have never missed a payment! Never! Since I made my XXXX XXXX monthly payment, they have applied all of XXXX, XXXX, XXXX, XXXX, XXXX to interest/finance charge only. My principal balance after my XXXX payment has been the same and shows I have only {$68.00} applied to principal as of making my XXXX payment! To me common sense would tell a lender that this loan will never ever be paid off at this pace. At maturity of XXXX, I will have the same principal balance! One receptionist told me that this is how this type of loan works. I want to sue them for harassment, negligence, discrimination, and any way possible! I have also requested a copy of my signed Note that goes with the mortgage, but no reply to this request. Latest contact with WF, my mother contacted them to check on the status of them fixing the errors. Even though I have given written approval to WF that my mother can speak for me, they would not move forward with making the corrections without my approval. They were advised that a letter is in their records of which XXXX XXXX has spelled out the problems and they have ignored them. 

Just get back with me with your reply or suggestions so this problem can be resolved and it will stop happening. 

Sincerely, XXXX XXXX

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