Consumer complaint received 2018-01-30
Company: WELLS FARGO & COMPANY
State: NY
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Problem when making payments
Sub-issue: Problem during payment process

Complaint:
I tried to consolidate my credit card debt on my Wells Fargo card. I applied and was approved for a personal debt consolidation loan to pay this card off. The lender ( XXXX XXXX ), as per its course of business and policy, mailed the check, for {$8500.00} to Wells Fargo. On XX/XX/XXXX, I saw on my XXXX balance that my debt had been reduced by {$8500.00} ( the amount of the check ). I then used the card to make purchases because the balance had been nearly paid off via the loan check, as was reflected in my account. Five days later, XX/XX/XXXX, I come to learn Wells Fargo rejected the check. I found this out because my balance statement, that initially showed {$8500.00} was paid off via the lender check, was now back as a balance on my account, listed as a " payment adjustment '' with NO additional explanation. On top of this, I now accrued an ADDITIONAL Overdraft/Overlimit fee for the purchases I made based off the original statement, which again, accepted the payment. 

I called Wells Fargo several times for information. I explained that XXXX sent a check for the amount. It was a debt consolidation loan, standard issue, from another well-regarded financial institution. Wells told me that the check was rejected because they were unable to verify the account. But how can this be when it was first applied to my statement? How could they not verify the account but still show the amount on my statement? Wells Fargo would provide NO further information. By this point, I'd accrued an overlimit fee, as well as a {$27.00} dollar fee inexplicably assigned to my account for Wells rejecting XXXX 's payment. Wells Fargo now expects me to pay {$2000.00} to bring my account back on track. I dont have {$2000.00}. I barely had the regular minimum payment, which is why I tried to consolidate my debt. Now I also have loan bills coming in to pay back the XXXX loan! I wanted to cancel the loan with XXXX as the funds were never cleared and so the loan was never drawn on or applied. XXXX said they needed to see the returned check from Wells Fargo. I called XXXX several times and they told me they dont have the check and can give me no further documentation of what happened. All I have is my statement. The last representative I spoke to, XXXX, informed me that they shred the checks and dont return them. Shredding checks, as a negotiable instrument XXXX refused to apply, is absolutely unfair and deceptive behavior. And the over the limit fee they charged me on top of this is abusive. They are in violation of UDAAP with their handling of this, and they are hurting my credit score when all I attempted was to pay off what I owed them. 

My statement from XXXX on XX/XX/XXXX STILL shows the {$8500.00} as " Payment, thank you '' followed by " Adjustment -- Payments '' where the money is inexplicably returned to the account balance. I have attached this statement for review. I want my fines reimbursed and I want to close my relationship with them. They do not want to be paid off ; they want to keep their borrowers as hostages. This is shameful. Please investigate this.

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 monetary relief