Consumer complaint received 2017-08-29
Company: WELLS FARGO & COMPANY
State: MO
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Trouble using your card
Sub-issue: Can't use card to make purchases

Complaint:
A formal complaint has already been filed with Wells Fargo. Case # XXXX I have a XXXX card and a mortgage with Wells Fargo. Wells Fargo 's reward program for this card is called the XXXX XXXX XXXX XXXX. Through the program the card holder earns a one percent ( 1 % ) Cash Reward for every one dollar ( {$1.00} ) in net purchases ( purchases minus returns/credits ) made on this credit card account rounded to the nearest one cent ( {$.00} ). There is no limit to the cash rewards that can be earned through the program. 

I decided earlier in the spring/summer of XX/XX/XXXX to start using my Wells Fargo credit card for all my monthly expenses so that I can earn the 1 % on purchases. Once my cash reward reached {$25.00} Wells Fargo then applies {$25.00} to the principal of my mortgage, which is also through Wells Fargo. Everything had been working well until the last few months my payments were not being applied in a timely manor. I called the customer service department and they explained it sometimes take XXXX business days for the payment to be reflected in my available credit even through it is already reflected in my out standing balance. Since I was noticing a delay in the payment processing of the electronic payment sent by my credit union I then started to make my payment through the Wells Fargo website. This payment is issued from the same account with my credit union. 
My most recent issue leads me to believe that Wells Fargo was purposefully delaying posting my payments to my account so that I would not have the credit to continue to make purchases and earn the 1 %, which eventually apply to the principal of my Wells Fargo mortgage. 

Here are the details : Wednesday, XX/XX/XXXX - {$470.00} Electronic Payment issued through credit union online bill payment system Thursday, XX/XX/XXXX - {$470.00} payment subtracted from my checking account balance ; payment not reflected in Wells Fargo available credit balance. 

Friday, XX/XX/XXXX - payment still not reflected in Wells Fargo available credit balance.
Sunday, XX/XX/XXXX - payment of {$230.00} made through Wells Fargo website.
Monday, XX/XX/XXXX - payment of {$470.00} and {$230.00} still not reflected in Wells Fargo available credit balance.
Monday, XX/XX/XXXX - automatic credit card payment of {$320.00} for auto insurance declined due to insufficient available credit. 

First Customer Service Rep explanation - it takes 3-4 business days for payment to fully process. Note : Monday, XX/XX/XXXX is the 4th business day. 

Requested to escalate issue and spoke with manager, XXXX - Same response ; it takes 3-4 business days for payment to fully process. Note : Monday, XX/XX/XXXX is the 4th business day. 

Requested again to escalate the issue and file a formal complaint - spoke with XXXX. She explained that a payment hold had been placed on all payments on my credit card account. 
Wells Fargo 's reason for payment holds : too many payments made on the account before the close of the billing period and payments made from multiple sources. Payment holds can take up to 10 day to apply to the available credit balance. 

XXXX verified : My account was in good standing. 
I had this card for XXXX years All payments were made on time and never past due and I never had a payment returned. 

Additional Information : All payments made on this credit card, as wells as my Wells Fargo Mortgage, have been issued from the same checking account I have had for over XXXX years. 
Payments were made by electronic payment through online bill pay through my credit union OR electronically through Wells Fargo website to issue from my same credit union account. 

Wells Fargo 's practice of delaying the posting of my payments has made it so that I can not use my card to make purchases and therefor reducing the amount that I am able to earn as part of the XXXX XXXX XXXX Program. 

Wells Fargo has removed the payment holds from my account, but warned if I continue to make more than XXXX payments in a billing cycle before the cycle closes, another payment hold could be placed on my account. The rep offered to set up the account on automatic payment to avoid this occurring in the future. I asked how that would help, if only one payment is made that limits how much I am able to charge in a month. 

I was also warned, if I continue to use multiple payment options that could also trigger a payment hold on the account. However the representative informed me they do offer 7 ways to pay the payment. 

After an hour and an half on the phone, at this time the payment hold has been lifted and the representative informed me for my troubles they will credit back the interest payment of {$22.00} that I made back in XX/XX/XXXX. This is because I have not recently incurred any interest because I have been paying as I charge in order to avoid interest and keep credit available to charge and earn 1 % XXXX 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