Consumer complaint received 2023-04-06
Company: WELLS FARGO & COMPANY
State: MN
Product: Checking or savings account
Sub-product: Checking account
Issue: Managing an account
Sub-issue: Funds not handled or disbursed as instructed

Complaint:
I believe Wells Fargo violated laws in how it handled my complaints regarding fraud on my checking account. 

I was XXXX  in XXXXXXXX XXXX. After that, I suffered theft from my home, including electronic devices previously used to log in to Wells Fargo online. Someone fraudulently transferred tens of thousands of dollars from my account. I reported the transactions immediately upon discovering the fraud and a police report was made regarding many stolen items. 

In previous Consumer Finance Protection Bureau complaints, I specifically said I was XXXX and therefore could not possibly have had access to my phone or any other device to make transactions and had not authorized anyone to take any action on my accounts. Despite this, the final answer from Wells Fargo was denial of my claim, explaining that because they believe the transfers apparently happened while someone was logged into the bank portal on my device ( even though it was stolen ) they decided it was me or someone authorized by me to make the transfers. 

I believe Wells Fargo has violated laws in two ways.

First, if someone steals a device authorized to access a bank account, then transfers large amounts of money out fraudulently, but the bank fails to contact the consumer to verify the sudden, unusual transaction activity, the bank may have violated the Electronic Fund Transfer Act ( EFTA ) and/or state law.

Under the EFTA, banks are required to have pr
ocedures  in place to protect against unauthorized transactions. These procedures include requiring customers to provide identification before making large or an unusually large number of transactions, or contacting customers to verify large transactions. If a bank fails to have these procedures in place, and as a result, a customer loses money due to unauthorized transactions, the bank may be held liable for the customer 's losses. Wells Fargo allowed tens of thousands of dollars to flow out of a relatively new personal bank account with no prior history of making so many large transfers without ever contacting me or asking me to come to a branch to prove it was me making these transactions, which I could not have done at the time since I was XXXX If they had, I wouldn't be in this situation now. 

Second, regarding Regulation E, the Consumer Finance Protection Bureau explains, among other things, that " Unauthorized EFTs include transfers initiated by a person who obtained a consumers access device through fraud or robbery and consumer transfers at an ATM that were induced by force. '' I have explained and sent proof of my incarceration dates, during which I had no access to any devices and was not contacted by Wells Fargo at any point to verify that it was me making these large transactions, and I have provided a police report regarding my phone being stolen. Still, Wells Fargo decided these transactions were authorized. This is impossible, contrary to the claim and evidence, and I believe their subsequent denial of my claim is in direct violation of the EFTA and one or more parts of Regulation E.

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