Consumer complaint received 2022-08-23
Company: WELLS FARGO & COMPANY
State: FL
Product: Mortgage
Sub-product: Other type of mortgage
Issue: Trouble during payment process

Complaint:
I had to do a forbearance with Wells Fargo due to XXXX. I was very grateful for the assistance at the time and the fact I was able to receive the assistance. Towards the end of the forbearance time frame I was told I had a few options to move forward. The option that I selected that was the best at the time was the loan modification. I understood very well there would be no fees for the modification and the principal would increase with the past due amount and the interest rate I was locked in would decrease and the term would extent to make the payments more manageable. In order to complete the modification I had to make 3 trial payments. This goes back to XXXX time frame. This is also when the issue started. I made the payments and during the payment process, I watched my statements. The amount of the trial payment was {$3000.00}. On my statements I noticed from XX/XX/XXXX there were no unapplied funds showing on the statement. On XX/XX/XXXX, I called into Wells Fargo and authorized three payments for the trial payments and scheduled automatic withdrawals on my checking account. On XX/XX/XXXX, I made my first of three trial payments. On XX/XX/XXXX statement I showed unapplied funds of {$3000.00}. I was told it would not go into the payment due on my account until the total matched what my regular monthly payment was. On XX/XX/XXXX, I made my second trial payment for {$3000.00}. At this point, because the amount of funds totaled my regular monthly payment {$3200.00}, they applied {$3200.00} as a payment and this was for a past payment to XX/XX/XXXX. The unapplied funds balance went to {$2800.00}. My statement reflects this balance. Then on XX/XX/XXXX, I made my third and final payment for the modification trial payments which was {$3000.00}. This now allowed for the second regular payment to be paid and they used this for XX/XX/XXXX past payment. This left the remaining unapplied balance on my statement {$2700.00}. This {$2700.00} unapplied balance was reflected on my XX/XX/XXXX statement, and XX/XX/XXXX statement and on XX/XX/XXXX and XX/XX/XXXX the modification was completed. Again, as of XX/XX/XXXX, the modification was complete. There is no explanation for the fees other than what was outlined in my original agreement. NOTHING was said about the {$2700.00} unapplied balance. On XX/XX/XXXX, two days after the modification was completed, Wells Fargo took the {$2700.00} and put as applied funds but the {$2700.00} does not decrease my principal balance. I found it very strange that the balance just disappeared and did not reduce my principal as I personally paid that money in the three trial payments and it was left over and unapplied. There was no explanation for where the monies went. My first NEW payment AFTER the modification was completed was completed on XX/XX/XXXX in full as the new agreed payment was {$3000.00}. On XX/XX/XXXX I made my next payment after the modification. 
Then on XX/XX/XXXX, a payment reversal was done for {$2700.00}. This is the SAME amount that I overpaid. When I saw this, I called Wells Fargo. The representative that I spoke to took time to review everything and she told me the {$2700.00} was an overpayment I made. She explained she could apply it to the principal balance, or apply it to the escrow account. My concern was thought that we had requested a 10 day pay off because we were selling the house. She advised it would not be an issue to wait until the 10 day pay off was completed as the {$2700.00} would be issued as an overpayment as it was never applied and it is just sitting there. So on XX/XX/XXXX a full payment to the account was made to pay off the house in full. I watched for the statement to come out and there wasnt one. I called back into Wells Fargo and spoke to a representative. I explained everything to him. He reviewed the information and said he would look into it and get back to me. After a long while on the call, he came back and said he needed to escalate at previous persons call and have a manager reach out. He could see what I was explaining and told me he would escalate the call since I was previously told that the amount would be sent out to me. He told me in the escalation the hoped they would do what was right and issue the {$2700.00}. 
He escalated the all to XXXX. XXXX called me back a few days later and said she had reviewed the call and the agent was coached for telling me the wrong thing. I re-explained everything again to her and she reviewed all the information in the notes, and listened to my concern. She personally reviewed the statements and saw exactly what i was talking about. She put me on hold several times to check with several departments including the cash department, the cash specialist, requested the loan transaction history which she would send to me and I have yet to receive, and through it all she could not get a straight answer as to what happened to the {$2700.00}. She at one point mentioned that the funds were applied as a corporate advance fees, title fees, etc. I explained this was unacceptable as I was told there were no fees for the modification and the agreed to amount that I was paying was put into the new principal amount. Furthermore, the fees were not disclosed, I did not agree or sign anything that stated the fees, and my statements showed the monies in the unapplied section, then to an applied but did not reduce my principal, and then finally as a payment reversal on my account. I was on the phone with her for several hours to try to rectify the situation. In the end she told me she had to escalate this case to the Executive Management team. 
On XX/XX/XXXX and XX/XX/XXXX, I received a phone call from XXXX XXXX from the Wells Fargo Executive Office he left voicemails he received my complaint and wanted to discuss. I called him back and he explained he received the escalated case and would review everything and get back to me with an answer. I went over all the details with XXXX again. He apologized for what had happened and said he would get back to me. He said he would have a response by the first week of XXXX. That did not happen. In fact, XXXX called me back and explained he could not find where the funds were at. I reviewed in detail step by step what I provided above and he said he understood and could agree the funds look like they were not applied and they are my funds. He stated he needed more time to track down what happened and would get back to me. He again said that if he could not find an answer he was going to request a check be sent to me for the {$2700.00}. 
I did not hear from XXXX again back from the XXXX of XXXX when he left me a voicemail. He did not allow me the opportunity to further discuss with him. He stated the funds were applied to reduce the capitalized interest during the modification, and he would send out a letter to me so I could have everything in black and white and he was closing out the case. 
I called XXXX back to discuss further. I told him I did not agree with the decision and that the modification did not have any additional fees included and I was clearly not advised of any of the fees. I had signed an original document for the loan modification which included the interest amount Wells Fargo needed to collect because of the forbearance, and the principal amount and clearly detailed the amount of the new principal. No where did it ever show or apply the {$2700.00} in the agreement and nowhere did I further agree to have the {$2700.00} used for anything other than getting it back as an overpayment. 
To this date I have still not received any letter from Wells Fargo to explain this in detail. I have also not received the check I am due of {$2700.00} for the unapplied funds for which I paid for. 
I feel as though Wells Fargo has taken advantage of me as a client in a time of need without properly explaining the process and providing misleading information. It is quite alarming that multiple representatives including supervisors could not find easily where this fee was and it took months of research and hours upon hours of my time to request what is rightfully mine as an overpayment. 
If this has happened to me, I am sure it has happened to others that were in a similar situation and I am quite appalled Wells Fargo is not being held accountable to the actions and lack of providing accurate and professional information every step of the way. These types of deceptive practices are not warranted, fair, and need to be addressed immediately. 
I do not agree with the findings of Wells Fargo. I do not agree nor did I authorize the use of the {$2700.00} for anything other than to apply to the principal of the loan. These funds are due to me. Wells Fargo failed to accurately disclose fees, terms, and conditions of the loan and the executive department failed to continue to work with me or further investigate once they came to the conclusion even though I told them I did not disagree and requested a check be issued to me in full for the {$2700.00}.

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 explanation