Consumer complaint received 2023-08-11
Company: WELLS FARGO & COMPANY
State: FL
Product: Mortgage
Sub-product: Home equity loan or line of credit (HELOC)
Issue: Trouble during payment process

Complaint:
A couple of payments before XX/XX/XXXX Wells Fargo has applied my monthly principal interest payment payment payment as an interest only payment. They are not authorized to do this. There is nothing written in my agreement that they have the authority or right to apply by entire P & I payment to finance chg aka interest charge. My agreement states that my payment is due on the XXXX of each month and that I do have a 10 day grace period od which they are failing to honor. And if I go four or five days passed the due date of the XXXX they penalize me by taking my entire P & I paymt and applying it as finance charge only! They are completely ignoring that I have a 10 day Grace period and that if I am subject to a fee it is written that I only pay a late fee of 5 % of by {$770.00} monthly XXXX WHICH equals to {$38.00} per late payment. And being 10 days late or more entitled them to rec ONLY a late fee and no other penalties. It does not say anywhere in my agreement that they have the authorization to take my entire payment and apply it to interest only as a penalty this is not correct to apply my payment as interest only each month I have a 10 day grace period which is written in my agreement and Im sure that its in the REAL ESTATE note that states I also have a 10 day grace period. They have failed to show proof of any kind whatsoever showing that they have the authority and written agreement to take my entire P & I payment and apply it to finance charges when I have not broken any kind of agreement and they are failing to honor the XXXX GRACE PERIOD!!!! They will NOT honor the 10 day grace period at all they have been applying interest only XXXX, XXXX, XXXX, and XXXX, this needs to be corrected and I am being ignored and XX/XX/XXXX. They show on the statement they received a payment from me on XXXX XXXX XXXX for {$770.00}. The principal applied with XXXX XXXX they finance charge with {$600.00}, next statement shows they received no payment of which they did and I have a receipt for it! It is not my problem that their computer spits out a statement before my 10 day grace period has passed so they sent out a statement that says I made no payment. The finance charge was {$590.00}, the next statement shows a payment was posted XX/XX/XXXX of {$770.00} and all of that amount was applied to finance charge only this is incorrect. I have a 10 day grace period. My payment is due on the XXXX that was made on the XXXX. They are not honoring the grace period at all. next payment statement shows they received a payment for me on XX/XX/XXXX at {$770.00} which was applied to all finance charge that is incorrect. I have a 10 day grace period that payment is due on the XXXX of each month that is only XXXX days past the due date. Next statement shows a payment received by Wells Fargo on XX/XX/XXXX in the amount of {$770.00} and it was all applied to finance charge. That payment was made by me on XXXX XXXX it is not considered late until the 10 day grace period is past. My payment is due on the XXXX of each month And it was made on the XXXX. They do not have the authority to apply my entire payment to interest only next payment was received by Wells Fargo on XX/XX/XXXX {$770.00}. They applied only {$68.00} the principal and they applied {$700.00} to finance charge which is incorrect. The principal should have been over {$100.00} And the finance charge is overcharged. Next payment shows they received a payment for me on XX/XX/XXXX {$770.00} is the principal interest they applied {$150.00} to principal. They applied {$610.00} to the finance charge. I do not have the XXXX statement as of yet I made that payment on time. 
Also they have stated That they try to reach out to me by calling me but intentionally they call me XXXX minutes till XXXX oclock and when I called back I get their answering machine and they do not return my call so theyre just playing games and they need to be put in their place and told what theyre doing is very incorrect. They need to stop applying my principal and interest payment of {$770.00} to interest and if I am more than 10 days like they only are to charge me {$38.00} late fee. This is all they are entitled to, they do not have the authority to take my entire monthly payment. Think about it, it doesnt take much of a banker to know that if you are just paying interest each month, theres no way you can ever pay your loan off, it just wont happen. When your maturity date arrives, you will owe the same amount you borrowed. Now does this makes sense?

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