Consumer complaint received 2020-07-31
Company: WELLS FARGO & COMPANY
State: MI
Product: Vehicle loan or lease
Sub-product: Loan
Issue: Managing the loan or lease
Sub-issue: Problem with fees charged

Complaint:
I am a victim of Wells Fargos shady business practices. I am only one of  many. This is my story. 

Back in XXXX, Wells Fargo illegally put CPI insurance on my auto loan, then they repossessed my vehicle when I couldnt pay the bloated payments. I recently learned that there was a class action lawsuit against them in regards to that issue. They lost the case and were ordered to pay class action members millions of dollars. I was a member of that lawsuit. This is how those events have impacted my life. 

BACKGROUND It would be difficult to explain the impact that the criminal actions of Wells Fargo have had on my life without giving personal context. Please bear with me as this isnt my strong suit. 

At the time that Wells Fargo came into my life, I was a young, single, working mother with XXXX small sons. Previously, I had worked as a XXXX, then a XXXX XXXX, but a few years prior, I had taken a XXXX job in a different field that provided better pay and benefits and allowed me to rather quickly work from living in subsidized housing, to paying my own rent in a townhouse, and then to being approved for a government program that helped you buy a first time home. My American Dream was almost complete. All I had left was to get out of the jalopy I was driving and find something more reliable. Enter Wells Fargo, the wolf in sheeps clothing. 

THE PURCHASE For months, everyone I knew kept telling me I needed to get a better, newer car, but even though the one I had was nickel and diming me to death, it was paid off and I liked that. I had no monthly car note to pay, and I didnt have to carry full coverage insurance on it. I liked the small cushion of comfort I had at the end of each paycheck and was hesitant to give it up by financing a vehicle, but then one day the junker unceremoniously decided to give up the ghost on the way to work and I knew the time had come. So I found a used car dealer nearby that had an older SUV ( it was a XXXX and this occurred in XXXX ) that seemed like a decent fit. It had room enough for the kids and the payments wouldnt break the break or so I thought. 

THE BREAKDOWN I barely had time to relax into the experience of moving into a new house and getting a decent vehicle when things started going south. Only a couple months after I signed the loan, my safe, reliable vehicle took a spectacular XXXX. The transmission went out, apparently causing a lot of damage when it did, and the repair bill was nearly {$4000.00}. The dealer refused to help ( yes, I was naive enough to think they would ), so I was forced to borrow money so I wouldnt be left without transportation. I had to get the kids to daycare and school and I had to get to work. I didnt have anyone to help with that. I had no choice. 

So I got the vehicle fixed and was left stretching to pay all these extra expenses, but I was getting by. However, very shortly after, without warning, my auto loan payment amount spiked. I had no idea why, so I called Wells Fargo. The explanation I got was as clear as mud, but basically I was told that this was just a new requirement for me. I was led to believe it had something to do with my credit getting worse. I was never once asked for proof of insurance. In fact, I dont recall ever even being asked if I had any. ( If I had been, it would have been simple for me to provide proof at that time. ) So though I didnt like it one bit, I didnt question what I was being told too much because my credit HAD gotten worse since I had acquired all this new vehicle-related debt, so I guess it just seemed plausible to me. XXXX, but plausible. Like I said, I used to be pretty naive - I knew that businesses were in it for the profit, but I believed that companies were, for the most part, at least on the up and up. 

So I was left thinking that this was simply a new company policy that I couldnt fight, it was out of my control, and that I would simply have to figure out how to make it work. I tried desperately to do just that. I stopped paying other bills so I could cover the car note. After all, if I couldnt get to work, I couldnt keep the household afloat. 

As time went on, I just couldnt figure out how they arrived at their figures. It seemed like I was always behind with them, and I didnt even know how it had happened. I mean, I had always paid all my bills - the important ones, anyway. House, heat, car, insurance, etc. Now, I was suddenly, inexplicably delinquent no matter what. If I tried to talk to them, they treated me like I was a criminal just trying to lie to get out of trouble. For all their threats and strong arming though, the one thing they did not tell me was that I could be in danger of losing the vehicle. 

THE REPOSSESSION And then I woke up one morning, not long after, and went to run the trash out before I got ready for work and the truck was gone. I was literally so shocked that I just walked back inside and sat down on the couch. I couldnt get my head around what was happening. Eventually, I came out of it a little and called my mom crying, saying my truck had been stolen. She told me to call the police. When I called, I dont know how they knew, but they were the ones who told me it was repossessed. I still just couldnt believe it, but I called around until I found out that it was true - my car had been repossessed. I asked to get my personal belongings back ( my only coat and my sons school bag were in there ), but was told that I would have to pay all the past due charges and the repo-related fees first. I couldnt even buy a cup of coffee at that point, so I didnt get my belongings back and never saw the vehicle again. 

THE AFTERMATH Even now, after I have had so much time to reflect, its hard for me to describe the state of disbelief I was in. Things had escalated so quickly, and I had been TRYING the whole time, I wasnt being non compliant or uncommunicative - I didnt just take the car and run and not make any payments - so I never believed they would go from loan signing to repossession in such a short time.. How did that benefit them? I still dont understand that part. The car was supposedly sold at auction for a considerable loss ( they told me I still owed {$8000.00} after ). Why take it away from someone who was at least trying to make all the payments you demanded and instead pay all those extra costs to the repo man, the auctioneer, etc. and not even recoup the sales price? That part makes what followed even more difficult to swallow. I know that, in the great scope of things, what I experienced was minor ( even knowing what was yet to come ) compared to the trauma and devastation that some people face in their lives, but to say that my life imploded all because of this one incident isnt much of an exaggeration. 

Now I had no car and I worked on the outskirts of a town with a woefully inadequate public transportation system. It was too far to reasonably walk, and even if I could, what would I do with the kids? I didnt have enough friends or acquaintances with schedules that matched mine who could drive me around. So I couldnt get to work consistently. In a situation like that, it doesnt take long to point out of even a generous attendance policy. Which is what happened. I lost my job. I had never been let go before. 

Now I had no car and no income. I couldnt transport my children where they needed to go. I couldnt get to stores, appointments, doctors. Even if the places were on the bus routes, I didnt have bus fare. Especially for all three of us. You even needed a car to apply for state aid - in those days there weren't any online applications. I couldnt pay my bills. My power ( and heat ) was turned off. That had never happened to me. I couldnt keep my children warm or cook for them. I couldnt pay the housing bill and was kicked off the home buyers program. I lost the house. 

Now I had no car, no income, and no place to live. I had nowhere to go except a shelter or a relatives couch. I chose the couch, but I still couldnt take our belongings. Even if there had been room, I had no way to transport them. Since we could only pack very few things, I didnt waste space on paperwork ( like auto insurance documents for a vehicle I no longer owned ). That would just take up space where I could put one more of my little boys beloved stuffed toys. Pay attention - that little detail comes back to bite me. 

As I have said, we have a small, XXXX family unit anyway, but help from the few people I did have around was even less forthcoming because they all found my story so unbelievable that they just couldnt believe that I hadnt just been somehow grossly negligent and brought this all on myself and so, in turn, upon them. Apparently, in their minds, it was easier to believe that I had suddenly completely stopped being the responsible person I had a history of being and just I dont know goofed off? I guess I wasnt the only naive one around. 

For those of you fortunate enough never to fall into a hole, let me tell you - it is a whole lot harder to dig yourself out once you hit bottom. Its not as simple as just getting to work digging. There are suddenly so many more obstacles down there. I couldnt get a job because I had no car, I couldnt get a car because I had no money. I couldnt get a house because I had no income and bad credit. I couldnt go to interviews because I had no transportation, no clothes, no self-esteem, not even a phone to schedule them. I had no phone, no internet, no hope. My XXXX  health conditions worsened - I have had XXXX XXXX since I was XXXX years old and have XXXX XXXX. I was XXXX, XXXX, and XXXX from XXXX ( later diagnosed ). 

You may notice that one topic is mostly absent here - the impact on my children. I will not be discussing that topic. Dredging up the memories of that time is already costing me a lot - whether or not anyone feels it is justified or not, I am emotionally wiped by this exercise - trying to explain the damage to my children is more than I can bear. The pain, guilt, and shame is too much. If you must, just imagine what it would be like for your child to wake up and suddenly lose everything they held dear and made them feel safe - their house, their beds, their toys, their computer and games, their dog. They cant go out anymore, but they have no real place to be. They have to be quiet and cant move around much inside, but its a dangerous neighborhood outside. And their mom isnt the same person anymore. Shes sad and mad and sick. ... Yeah. Imagine that. 

THE UPSWING And so we went on like that for almost three years until I finally was able to secure an entry level position at a nearby call center. It wasnt my field, but the office was in the neighborhood. I took the bus and showed up in the only clothes I had - ripped leggings that smelled like cat pee from the couch I slept on - and sat in a plush conference room at a vast mahogany table across from the fully-suited owner of the company and XXXX  my way through the interview. I got the job. It was XX/XX/XXXX. 

In XX/XX/XXXX, the landlady of the house next door to where I had been staying agreed to give me a chance now that I had steady income, despite my terrible credit. Afterall, I had a repossession on my record, you know. 

In XX/XX/XXXX, I bought another car. My first since the repo. Bought it outright. Paid a whopping {$600.00} for it. It was a rust bucket, but it was mine. 

In the fall of XXXX, a year after I was hired in, I was promoted. I was now assistant to the president of the company. My income improved. So did my outlook. I started planning. I started attending college online. I made a three year plan to get out of the ghetto and buy my first houseagain. 

By the end of XXXX, I had paid off most of my debt - over {$11000.00}. I was working with another home buyers program which included educational classes and debt counselling. They liked where I was heading. 

In XXXX of XXXX, I got the keys for our second first house. And it is a nice house. In a nice neighborhood. My kids can feel safe and secure here. And even though they arent little boys anymore ( they were XXXX and XXXX then ), I set to work trying to repair some of the lost trust they had in the world. 

LASTING EFFECTS In XXXX my XXXX  flared up and worsened to the point that I had to give up my job. When that happened, I was thrust back into the position where I was unable to pay my bills and my home stability was threatened, and that triggered my XXXX from the previous trauma from the Wells Fargo incident. My symptoms were so severe that I ended up hospitalized. After release, I spent more than a year in therapy working through those issues, but never have been able to go back to work and currently live off of XXXX. While I did regain stability again, my life isnt nearly what it used to be. I am no longer the active, vital member of the community and workforce that I used to be. My confidence is gone, my tolerance for stress is greatly diminished, and I am plagued with bouts of XXXX. My childrens lives and personalities have been irreversibly impacted. For example, one of them, still to this day as an adult, has food hoarding issues resulting from the days in his formative years when his next meal wasnt guaranteed. 

THE RELAPSE Just when I thought I was back on an even keel, out of the blue in the fall of XXXX, I received a letter stating that I was a member of a class action lawsuit against Wells Fargo for their unlawful application of XXXX to auto loans. The letter gave the date of my original loan as XX/XX/XXXX. I did some research online and was surprised to discover that my experience wasnt isolated. You might think that the news would be welcome, but at the time, I was just upset that they had come out of the woodwork to victimize me again by making me relive those memories all over again. So I put the letter in a basket and ignored it for some time. 

THE LAWSUIT : A TIMELINE On XX/XX/XXXX, I decided to call the number on the class action notice to find out more. I was told that no action on my part would be required and that checks would be issued through late XXXX and early XXXX. 

During the winter of XXXX, I saw online that some people were being asked to provide proof of insurance coverage, but I had read that my state ( Michigan ) was one of the five states exempt from needing to provide proof of insurance, so I thought that was why I didnt receive a request for documents. 

I didnt hear anything more until XX/XX/XXXX when I received a letter from Wells Fargo. It said : We purchased the following CPI policy ( ies ) on your behalf because our records reflected that you did not have your own comprehensive and collision insurance coverage. CPI policy effective XX/XX/XXXX to XXXX XXXX, XXXX. We do not have record of your personal insurance coverage for this entire period. 

Our records show that your loan was originally sold to XXXX XXXX on XX/XX/XXXX and that XXXX XXXX no longer owns your loan ( because it was subsequently sold to a different company ). We may need to contact the current owner of your loan in order to complete additional research. If you can provide the name of the company that currently owns your loan, please call us at XXXX. 

Though I usually save important information, because I was forced to leave behind most of my belongings when I became homeless, I do not have proof of my full coverage insurance in XXXX. I called my insurance company and was told that they do not store records that long. 

On XX/XX/XXXX, I called and opened a complaint with Wells Fargo Office of the President asking why they were demanding proof of insurance from me when I am in Michigan and supposedly exempt from that requirement. I was assigned a case number XXXX XXXX XXXX XXXX XXXX XXXX XXXX ) and an agent, named XXXX. She never answered my question about exemption. She was persistent in asking for my insurance information and I relented and confirmed who my insurance provider was at the time. Since it had been the same provider since I opened the account, I figured they already had this information, so it shouldnt be harmful to tell them. I also told the story about why I did not have records ( repossession, etc. ) and also explained that the insurance agency told me they didnt have the records on file. Since their letter asked about the debt holder, I mentioned that there should be no current loan holder as I had to pay all the collection accounts on my credit report off in order to repair my credit enough to be able to purchase my home. She did not comment, nor ask for any further information. She just told me that the issue would be escalated for review and would be resolved within ten business days, so that should be XX/XX/XXXX but that the entire process could take up to 120 days, but she would call every five days until resolved. I didnt hear back, so called for update on XX/XX/XXXX and XX/XX/XXXX and was told both times that there was no new information On XX/XX/XXXX, I received another letter from Wells Fargo. It said : According to our records, we did not receive proof of insurance from you or your insurance company for the following time period ( s ) : CPI policy effective XX/XX/XXXX to XX/XX/XXXX. We do not have records of your personal insurance for this time period. Upon account review, we determined you are not eligible for a refund. 


On XX/XX/XXXX, To add insult to injury, I received a check from the class action settlement group, in the whopping amount of {$2.00}. 

On XX/XX/XXXX, I called the Wells Fargo Office of the President and spoke to an agent named XXXX who assigned me a case number ( XXXX XXXX XXXX XXXX XXXX XXXX ) and opened a second complaint. He said that someone would be returning my call to gather details. 

On XX/XX/XXXX, An agent named XXXX called and said he had been assigned to my case and asked what my complaint was. I stated that I disagreed with the denial - just because the insurance company and I dont still have records from 14 years ago, doesnt mean I didnt have insurance. The policy ended when the car was repossessed. XXXX said he was unaware that I had a repossession, that information wasnt in my account. I told him that I had told the previous agent ( XXXX ) and that she was supposedly going to investigate. He said he would escalate to his research team and that the issue would be resolved within 10 business days, but that I would hear from him by next Monday or Tuesday ( XX/XX/XXXX or XX/XX/XXXX ) for a follow up. I didnt hear back from him. 

In the meantime, on XX/XX/XXXX, I called the Wells Fargo CPI Class Action Settlement group regarding the {$2.00} check and spoke to an  agent named XXXX. I asked how that amount could be correct, when the information they provided stated that individuals in my situation would receive considerably more. He would only say that there is no appeals process for distribution plan members, but that he would create an escalation and I should hear back from someone by Monday or Tuesday ( XX/XX/XXXX or XX/XX/XXXX ). He did not explain exactly what the purpose of the escalation was. I never heard back from anyone. 

On XX/XX/XXXX, I called the Wells Fargo Office of the President for an update and spoke to an agent named XXXX who said that XXXX wasnt online and she didnt know his work schedule so she would send him an email asking him to get back to me. She would not provide any information about my case. 

On XX/XX/XXXX, XXXX returned my call and said that the investigative team determined that there was no evidence that I had my own insurance. When I tried to discuss ( again ) the fact that just because the records werent available any longer, it doesnt mean that I didnt have insurance, he said he isnt privy to the information that the investigative team has or what they base their decision on, and that my only recourse would be to try again after you receive the denial letter. I asked about the repossession and he said they have no record of that occurring. I asked if that meant a random company just stole my truck. He declined to comment. 

IMPACT OF THE LAWSUIT At this point, the lawsuit has served only to reopen old wounds and revictimize me by forcing me to jump through impossible hoops in hopes of receiving a paltry monetary restitution for an error ( criminal act ) that wasnt mine only to deny me twice. I am exhausted, destabilized, and experiencing mood disruptions that are affecting my quality of life. I am also angry. Why, despite a preponderance of evidence of their criminal acts, is Wells Fargo still being allowed to victimize people? 

CLOSING THOUGHTS I cant for the life of me understand how a company can be caught red-handed multiple times illegally, intentionally, and maliciously victimizing countless numbers of their customers and still remain in business. In the past few months, to my dismay, I have read dozens of firsthand accounts from people who, like myself, experienced massive, life-altering damages at the hands of Wells Fargo. 

In those stories, the refrain I hear most often is, I thought it was just me and I can relate so well to that statement. For years, I felt exactly the same way ; alone in this. In some small way, knowing that others have had similar experiences with Wells Fargo, brings me a sense of relief from the validation that Im not crazy, that this wasnt somehow all my fault - because, despite the fact that I rationally knew better, my story was so dramatic no, TRAUMATIC that I often convinced myself it couldnt be true - but mostly, reading their stories just makes me heartsick. Knowing what so many have suffered through at the hands of an unscrupulous, crooked bank all in the name of profit saddens me deeply. 

It was suggested to me by someone who has been active in trying to help folks like me who have suffered due to the irresponsible actions of this company, that I sit down and write my testimony regarding my experience. Im not sure what good it will do, but I guess if it could possibly reach someone and make them feel less alone, then it was worth it.

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