Consumer complaint received 2021-07-06
Company: WELLS FARGO & COMPANY
State: VA
Product: Credit reporting, credit repair services, or other personal consumer reports
Sub-product: Credit reporting
Issue: Incorrect information on your report
Sub-issue: Public record information inaccurate

Complaint:
This issue concerns Wells Fargo Auto 's internal errors in timely processing my vehicle loan payoff and the bank 's subsequent delinquency notice on my credit report. I gave authorization to pay off the loan on four separate occasions. All of them are documented. Due to its own internal processing errors, Wells Fargo failed to close my account and marked it late. 

I conduct my personal banking through Wells Fargo. On or about XX/XX/XXXX, I purchased a used car. The purchase was financed through Wells Fargo Auto for a total amount of {$38000.00}. 

On XX/XX/XXXX, I paid off the Wells Fargo XXXX loan in the full amount of the outstanding balance of {$31000.00} ( First Payoff ). See Wells Fargo XXXX. XXXX, XXXX Letter ( Exhibit 1 ). I received a copy of the clear title from Wells Fargo. 

By letter dated XX/XX/XXXX, Wells Fargo Auto informed me that " due to a system outage between XX/XX/XXXX and XX/XX/XXXX, we [ the bank ] did not withdraw funds from your bank account for the payoff that was submitted. '' See Wells Fargo XXXX. XXXX, XXXX Letter ( Exhibit 2 ). 

On XX/XX/XXXX, I gave Wells Fargo Auto authorization to re-process the payoff amount of {$31000.00} ( " Second Payoff '' ). See Wells Fargo XX/XX/XXXX Letter ( Exhibit 3 ). 

Wells Fargo failed to process the Second Payoff. On XX/XX/XXXX, I spoke with a Wells Fargo Auto representative who stated that the system did not reflect that my account was paid off and that there must have been an error in processing. The Wells Fargo Auto representative recommended authorizing another payoff of {$31000.00} ( " Third Payoff '' ). 

On XX/XX/XXXX, I discovered that by Wells Fargo Bank account had been debited twice for the payoff, a total of {$62000.00}. See Wells Fargo Bank Statement showing double debit of the Second and Third Payoffs ( Exhibit 4 ). 

I immediately contacted Wells Fargo Auto about the double debit error. Wells Fargo said someone would call me back in 48-72 hours. Nobody ever called until I called them. 

In the meantime, on XX/XX/XXXX, I initiated a report with Wells Fargo Bank about an unauthorized withdrawal of {$31000.00} from my bank account. See Wells Fargo Bank Letter dated XX/XX/XXXX ( Exhibit 5 ). Wells Fargo Bank agreed that it was a double payoff, and reversed one of the payoffs on XX/XX/XXXX. See Wells Fargo Bank Statement showing XX/XX/XXXX reversal ( Exhibit 6 ). 

On XX/XX/XXXX, Wells Fargo Auto reversed the other payoff. See Wells Fargo Bank Statement showing XX/XX/XXXX refund ( Exhibit 7 ). At this point, Wells Fargo had reversed the First, Second, and Third Payoffs. 

By letter dated XX/XX/XXXX, Wells Fargo Auto informed me that my payoff was returned for " check truncation entry return. '' As a result, my Wells Fargo Auto account was re-opened. 

After approximately a week, I was able to correct the payoff problem. On XX/XX/XXXX, I authorized the fourth payoff ( " Fourth Payoff '' ). See Wells Fargo Bank Account Statement showing payoff on XX/XX/XXXX ( Exhibit 8 ). 

By letter dated XX/XX/XXXX, Wells Fargo Auto sent an apology letter to me and backdating the Fourth Payoff to the date of the First Payoff, XXXX XXXX, XXXX. Wells Fargo Auto also sent me a check for interest that I paid on the Fourth Payoff. See Wells Fargo Auto Letter dated XXXX. XXXX, XXXX ( " You authorized a new payoff for {$31000.00} which posted on XX/XX/XXXX, and was made effective for XX/XX/XXXX. '' ) ( Exhibit 9 ). 

Despite my multiple calls, four payoff attempts, and documentation showing Wells Fargo Auto 's errors, the marked my account late and reported me to credit agencies. I found out about this reporting on XX/XX/XXXX, while I was obtaining financing for a new home. This issue is causing me to either have a higher interest rate on my new home purchase, or to buy a lower rate by purchasing " points '' for approximately {$4000.00}.

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 non-monetary relief