Consumer complaint received 2019-12-18
Company: WELLS FARGO & COMPANY
State: CO
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
To Whom It My Concern : In regards to the notice I received concerning insurance coverage for XXXX XXXX XXXX, XXXX, CO XXXX for the dates XX/XX/XXXX to XX/XX/XXXX I am objecting to this charge. 

This is a complicated situation but let me see if I can simplify it. After many hours and numerous phone calls with Wells Fargo and XXXX, my insurance carrier, here are the facts as best I could determine : XX/XX/XXXX XXXX  sends a bill to Wells Fargo and me for the next year of insurance XX/XX/XXXX Wells Fargo mails check # XXXX to XXXX XX/XX/XXXX XXXX mails expiration of insurance notice to Wells Fargo and me XX/XX/XXXX Wells Fargo representative talks with XXXX ( or XXXX ) at XXXX about the outstanding check - they put in a request into billing department to find out what happened to the check - they take 2-3 business days to say thy dont know what happened to the check and maintaining they never received the check XX/XX/XXXX Wells Fargo stops payment on the check and credits my escrow account for the money XX/XX/XXXX Wells Fargo calls XXXX at XXXX and was told the homeowner has to call billing to have policy rewritten XX/XX/XXXX Wells Fargo unable to make outbound call to me XX/XX/XXXX Wells Fargo calls XXXX at XXXX who says policy is cancelled for non payment and they can not rewrite the policy- insured needs to call to have policy rewritten XX/XX/XXXX Wells Fargo sends an email to me asking if policy is cancelled XX/XX/XXXX I receive a letter that was generated after the XX/XX/XXXX single attempt to call me telling me my homeowners insurance is cancelled and I need to provide proof of insurance Numerous phone calls among the 3 parties occurs to find out the above facts During these calls XXXX  maintains they never received the check and Wells Fargo maintains they never received the XXXX notice of cancellation XX/XX/XXXX I get a new policy from XXXX  for {$770.00} more than the original bill issued XX/XX/XXXX Then I receive a notice Wells Fargo will charge me {$1300.00} for coverage during the elapsed time. This is the charge I am disputing. 

At its most basic the relationship between me and Wells Fargo consists of : Wells Fargo agreed to loan me money to buy a house and I agreed to repay that money with interest by making monthly payments in a timely fashion Wells Fargo offered to establish an escrow account for paying the insurance and property tax bills on this property. 
I agreed to this arrangement and to include money in my monthly payments to cover the costs of these bills Wells Fargo promised to pay these bills in a timely fashion I am disputing the charge of {$1300.00} for these reasons : Wells Fargo failed to complete payment of the insurance bill per the agreement between us costing me a significant amount Wells Fargo failed to notify me in a timely fashion Wells Fargos policy of not following up on outstanding checks until 90 days past creating them results in a cancellation of the insurance policy costing me {$770.00} plus higher insurance costs for years to come. 
Buying insurance for past dates makes no logical or rational sense. Insurance by its very definition is coverage in the event of some future negative event - not some past period where it is known no negative events occurred. The idea of me paying for insurance in the past is in fact just a pure profit for Wells Fargo with no foundation of any cost to Wells Fargo. 
While Wells Fargo disputes ever having received the XXXX notice of cancellation, I do not remember if I received it or not. It does seem a little odd that so much mail went awry in this but if Wells Fargos system of following up on outstanding checks had been timely then none of this would have occurred. I am accepting that I did not fulfill due diligence and have paid the price for that. I believe that Wells Fargo did not show due diligence in fulfilling their responsibility to make sure my bills were paid in a timely fashion.

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