Consumer complaint received 2019-08-12
Company: WELLS FARGO & COMPANY
State: TX
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Other features, terms, or problems
Sub-issue: Problem with balance transfer

Complaint:
Ive been a Wells Fargo customer for 36 years. On XX/XX/XXXX I initiated a balance transfer in the amount of {$4000.00} dollars using Wells Fargos SUPERCHECK ( # XXXX ) which is a promotion that allows you to transfer balances at a promotional rate of 0 % APR for 15 months and a fee of 4 %. This promotional rate expires XX/XX/XXXX On XX/XX/XXXX I initiated a second balance transfer in the amount of {$3000.00} dollars using Wells Fargos SUPERCHECK ( # XXXX ) with a promotional rate of 0 % APR for 15 months and a fee of 4 %. This promotional rate expires XX/XX/XXXX On XX/XX/XXXX I contacted Wells Fargo credit card customer service @ XXXX to pay off the first balance transfer in the amount of {$2400.00} prior to the rate expiration on XX/XX/XXXX and to avoid paying 28.24 % APR on that balance. The customer service rep. told me that she could not guarantee the monies would be applied to the first balance transfer. I ask her why not its the oldest balance and dont the payments each month get applied to the oldest debt first. She said no, the payments go towards debt with an APR first and then it is allocated to the other balances, but she can not tell me how it would be allocated. I told her that sound unethical and wrong to me and she asked if I wanted to speak with her supervisor. She said her supervisor would tell me the same thing but maybe they can explain it a better way. I told her no that I would go to the branch near me a speak with a banker, we ended the call. 
I went to my local branch and spoke with the banker and he told me the way he understood it was the payment should go towards debt with an APR first and then the oldest transfer however, he would call the credit card team to make sure. He made the call and whomever he spoke with explained the same thing to him the rep. told me. He told me this person also said, if I wait until after the promotional rate expires on XX/XX/XXXX the system will automatically set a trigger to add the 28.24 % APR and if I paid the remaining balance owed on the first transfer around the XXXX or XXXX all the funds should go towards the oldest transfer because the system will see that an ARP will be applied. I told him paying 28.24 % APR is what Im trying to avoid and Im not going to wait until the XXXX to make a payment because the payment is due on the XXXX and Wells Fargo will charge me a late charge. I also told him it seems to me that all Wells Fargo is interested in is receiving that 28.24 % APR, thats how they make their money and they dont seem to care much about helping their most valuable commodity, the customer. 
After thinking about the information I received regarding this matter I couldnt believe how Wells Fargo is treating its customers. On XX/XX/XXXX I pulled out all my credit card statements to review how the payments were being allocated. I received a letter from Wells Fargo Consumer Credit Solutions the same day regarding another matter and it was signed by XXXX XXXX XXXX Senior Vice President Credit Card. I thought to myself maybe this person needs to hear my concerns, so I called the number on the letter which was the same one mentioned above. When the rep. answered the phone, I asked to speak with XXXX XXXX, she told that she could not transfer from her phone and she did not have extensions. She asks if she could help me, I told her I call on the XXXX and I would like for XXXX XXXX XXXX to hear my concerns. She told me her coworker would able to help me and is it ok to transfer the call, I told her yes. When the rep. picked-up the call he verified my information he asked how could he help me I told him I have a concern that Wells Fargo will not allow me to pay-off the balance on transfer that the 0 % rate will expires on XX/XX/XXXX, he said I see you paid the minimum payment and theres an overdraft advance and a purchase on this account. 
I said I just want to speak with XXXX XXXX regarding my concerns. He asks me to hold on, when he came back, he said he was going to transfer me to the customer service executive team I said fine. When the rep. picked-up the call she told me this call may be recorded and I said good please record the call. I explained my concerns as mentioned above and she said she needed to find out how I did the transfer and did anyone explain to me how it works. I told her I used the SUPERCHECK and I spoke with my banker at my branch. She went on to say when you signed the SUPERCHECK you agreed to the terms and conditions. She said she was looking at my account and the way it works is my payments will pay on the balance with the highest APR first and I have a purchase, overdraft advance, some interest charges and two balance transfers boy you have a lot going on. I said really, so I have a purchase for {$55.00} an interest charges of {$1.00}, overdraft advance {$8.00} an interest charges of {$0.00} all with an 28.24 % APR total {$65.00} and I made a payment of {$60.00} on XX/XX/XXXX so, if I pay {$5.00} more those charges will be paid and then can I pay-off the oldest transfer? She said thats not how is work and she began to tell me that when I initiated a second balance transfer I forfeited the grace period on the first balance transfer therefore, the largest percentage of my payments would go towards the transfer with the highest balance first because both have 0 % APR. I told her I felt this was unethical and wrong. I told her all the banks I do business with including the IRS apply your payments to the oldest debt first. She said we do not do things like other banks we do things different here at Wells Fargo and if I would have read the terms, I would have known how the program worked and she offered to send me a copy. I told no thank you I have a copy and what she was telling me was not what I read however, I would read them again. She said she had the terms in front of her she knows what they are because she must read them every day. I told her that looking at my statements I paid {$100.00} on XX/XX/XXXX which {$68.00} went towards the second balance transfer and {$0.00} went towards the first balance transfer and I dont know what happened to the remaining {$31.00}. She did not respond she just continued telling me ( maybe 6 or 8 times ) that I need to read the terms. I told her thats enough and she said Wells Fargo take these matters serious and she documented my concerns, and someone may be call me regarding this matter. I told her that I would be filing a formal complaint with Consumer Financial Protection Bureau because I believe Im not the only one with this concern. She said all the other customers knows how it work because Wells Fargo disclosed the information, then she began to read the terms to me and what she was reading and what I have are two different things. 
Attached are copies of the Wells Fargos Interest and fee Information, Important information regarding this offer and two Interest Charge Calculation charts my statements.

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