Consumer complaint received 2017-09-22
Company: WELLS FARGO & COMPANY
State: VA
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 have a credit card with Wells Fargo that has a zero interest rate. There are 4 promo balances on it. The zero interest rates on the promo balances begin expiring on XX/XX/XXXX. I will have sufficient cash, over the next few months to pay these off ( if Wells Fargo applies them appropriately ie applies the minimum payment first, and then applies the excess payment to the FIRST expiring promo balance, and so on. 

I have contacted Wells Fargo, via email, and each reply simply restates the previous " we apply Minimum Payment first to lower APR balances ( Purchases ) before balances with higher APRs ( Cash Advances ). Payments made in excess of Minimum Payment will be applied to balances with higher APRs first before balances with lower ones. '' Note : I have never made a purchase on this card. There are only the four promo balances. Wells Fargo did note in their reply that my APR will jump, after the expiration dates of the promo balances, to 18.15 % for Purchases! This is very convenient, as you will note below, that they have refused to allocate my excess payments to the first expiring promo balance, but rather do some kind of broad allocation - 33 % to the first balance / 31 % to the second / 14 % to the third and 21 % to the fourth. I do n't mind them allocating the minimum payment however they wish, but if I pay an extra amount of {$1000.00}, and I want it to be paid to the first expiring balance, I should be permitted to choose this option. 

Their most recent reply - again - the third time in 6 weeks - was ... '' Payments made in excess of the Minimum Payment will be applied to balances with higher APRs first before balances with lower ones. Because your balance consists of four promotional balances of 0 %, each balance will receive a portion of the payment. '' In my most recent communication with them, I offered to call in each time I make an extra payment and indicate that the first balance should be reduced by the payment etc. I have four balances - first one expires XX/XX/XXXX, second one expires XX/XX/XXXX, third one expires XX/XX/XXXX and fourth XX/XX/XXXX. The total I intend to pay between now and XX/XX/XXXX ( excluding minimums ) is about {$11000.00} and will more than adequately pay off the first two balances, if Wells Fargo allocates the payments correctly. 

I have a XXXX XXXX credit card and have promo balances ( 0 % ) on that card. XXXX XXXX does what Wells Fargo will not, they allocate anything in excess of a minimum payment to my first expiring promo balance. I fail to understand the difference. It also seems to me that this Wells Fargo matter is covered under your CFR Section 12 CFR 1026.53 regarding Allocation of Payments - am I correct? 

I would appreciate your assistance with this matter or any further information that you can offer me.

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