Consumer complaint received 2020-10-28
Company: WELLS FARGO & COMPANY
State: MI
Product: Student loan
Sub-product: Private student loan
Issue: Struggling to repay your loan
Sub-issue: Can't get other flexible options for repaying your loan

Complaint:
In Wells Fargos Response to complaint XXXX, XXXX XXXX asserted that the deferment end date for my loan was 5 1/2 years after my first disbursement and that no further deferments would be possible beyond that date. Additionally, Mr. XXXX asserts that my loans entered a payment deferment for duration throughout my graduate school pursuits claiming that the last of which began XXXX XX/XX/XXXX and ending XXXX XX/XX/XXXX. 

Per the MPN the maximum forbearance allotted was 5 years beyond the initial disbursement. Conveniently, the payment deferment that Mr. XXXX mentions began nearly 5 years after in XXXX. Each representative Ive spoken to to in-school deferment was quick to correct me in that what they offered was an in-school forbearance. Thus, Mr. XXXX statement regarding the payment deferment, is a distinct entity from the in-school forbearance as specified within my original MPN. 

It is not without mentioning that the last in-school forbearance was granted to cover the expected completion of my final degree program : XX/XX/XXXX thru XX/XX/XXXX. Wells Fargo notified me of the latest approval for an in-school forbearance on XXXX XX/XX/XXXX. What has changed since then is the onset of a declared pandemic. The WHO declared such on XXXX XX/XX/XXXX. Additionally the Executive Branch of The United States of America declared a nationwide emergency pursuant to Sec. 501 ( b ) of The Stafford Act on XXXX XX/XX/XXXX. Most states made disaster declarations shortly before the nationwide declaration to become eligible for federal disaster assistance. 

My request for an additional in-school forbearance was to cover XX/XX/XXXX thru XX/XX/XXXX, which is enough time for me to complete the last of my academic programs, that had been disrupted due to the SARS-CoV-2 virus outbreak and subsequent COVID-19 pandemic. I disclosed to Wells Fargo in my latest request that Id contracted XXXX in mid-XX/XX/XXXX and that itd taken months to fully recover from the symptoms. I further disclosed that a large swath of one of my academic programs had been disrupted over the XX/XX/XXXX to XX/XX/XXXX academic term because at least one ( 1 ) person unknowingly spread the virus around before developing symptoms in early XXXX of XXXX. What is clear is that completion of my final academic requirements was disrupted both due to my own XXXX XXXX and the havoc of an academic program moving into quarantine to limit spread. 

The language of my MPN is quite clear in its distinction between a forbearance and other payment arrangements. The semantics which Mr. XXXX uses in the response to case number XXXX is intentional. Mr. XXXX would like the CFPB to believe that the granted delays in repayment that allegedly exceeded the 5 max were payment deferments, and thus fall into other types of modifications not covered by the forbearance acknowledged in the MPN. Unfortunately, Wells Fargos own documentation dated XXXX XX/XX/XXXX refutes Mr. XXXX statement to the CFPB and makes clear that what has been granted have been in-school forbearance. 

It is clear that Wells Fargo is doing everything they possibly can to prevent from granting the routine in-school forbearance that they last granted me on XXXX XX/XX/XXXX. The question is why? In a conversation with a WF representative during the week of XXXX XX/XX/XXXX, the individual struggled to explain why the decision was made, chalking it up to We just want to make sure the short-term relief we may grant is something that is payable for you over the long-term. The statement was curious because before returning to graduate school I made well into six ( 6 ) figures as an engineer, substantiating my ability to succeed and repay the outstanding balance on the WF loans that has an aggregate balance of under two ( 2 ) months worth of pay per my last salary. The question again becomes why? 

On XXXX XX/XX/XXXX XXXX XXXX published an article quotes Wells Fargos website as stating beginning on XX/XX/XXXX, only customers with an outstanding balance on a Wells Fargo Private Student Loan are eligible to be borrowers on a new private student loan for the XXXX academic year. In the article XXXX XXXX, a spokesperson for Wells Fargo is quoted as saying Wells Fargo has decided to narrow its student-lending focus. On XXXX XX/XX/XXXX XXXX published an article stating that Wells Fargo is exploring a sale of its corporate-trust unit that could fetch more than {$1.00} XXXX and is considering whether to find a buyer for its student-loan portfolio, according to people familiar with the matter. The article goes on to say Wells Fargo holds a {$10.00} XXXX student-loan portfolio. The bank said earlier this month that it had notified customers of its planned exit from the student-lending business. 

As my payments began in XXXX of XXXX, WF is reporting adverse credit information to compel me, a student of non-traditional age, with a documented XXXX  XXXX, from a minority background, to obtain employment during a pandemic so that they can offset the YoY Q3 interest income losses of 19 percent. By forcing students into repayment during a pandemic they are attempting to hedge their losses due in the low-interest rate environment while they seek ways to divest themselves of their XXXX XXXX XXXX XXXX XXXX dollar student loan portfolio during the economic crisis to mitigate any additional losses that may affect their bottom line post-pandemic due to economic damage caused by the pandemic. 

In my particular case, WF has been willing to make false statements in their responses to my complaints submitted to the CFPB, and toy with the semantics within those responses, they have been willing to cause serious damage to my credit files with the three ( 3 ) major CRAs, to compel me to seek employment during a pandemic, so that their student loan portfolio looks that much more polished to any potential buyer. WF is aware that I hold or have held security clearances and are aware of how their credit report may affect that status. WF insists that it would like to prevent me from defaulting on a student loan, but refuses to grant me an in-school forbearance thru XX/XX/XXXX to finish my final requirements. WF insists that they are required to report accurate payment history to the CRAs, despite the CARES act granting them flexibility in how and in what ways they report my credit history to the CRAs during the pandemic. WF insists that they can not modify the negative history reported, yet under an in-school forbearance they would mark any late payments as paid as agreed once the in-school forbearance was granted and the annotation changes would be backdated to the beginning of the academic term covered by the in-school forbearance. 

Ultimately WF willing to make false statements to the CFPB, and to is to exact significant, long-term financial damage, on me, a minority male with a documented XXXX XXXX, one that holds or has held security clearances, one that has experienced XXXX XXXX from a XXXX XXXX, so that they stand a better chance at divesting their XXXX ( XXXX XXXX XXXX dollar student loan portfolio before any post-pandemic economic onslaught. 

That is, Wells Fargo is willing to wreak havoc on the individuals in their student loan portfolio if it provides them with perceived short-term gains. 

The size of the WF student loan portfolio implies that what theyre doing could spell broad economic disaster for millions of individuals whose student loans originated with, or were acquired by Wells Fargo.

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