Consumer complaint received 2022-09-06
Company: WELLS FARGO & COMPANY
State: CO
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Problem when making payments
Sub-issue: Problem during payment process

Complaint:
I have a credit card XXXX  issued through Wells Fargo Bank with a credit balance of {$12000.00}. I had recently issued a payment to the card on XX/XX/XXXX to which totaled {$8000.00}. This was reflected and shown on the account transaction list through my online banking account, the following business day. About a month later, I attempted to charge the card again with a smaller transaction amount to find that the place of business I was attempting to charge with, noted the card was declined. To what was my knowledge, credit was more than available due to keeping up on payments and seeing them apply on my online account. The balance on the card at the time said of transaction, was close to only {$2500.00} - XXXX, leaving much left on the credit line issued to the card. The transaction attempted to be charged only totaled {$1400.00}. The declined message continued to be received and thus led to calling Wells Fargo directly to check and see if there was a transaction limit newly placed or what the issue might be. My wife and I were transferred between multiple people and departments and became extremely frustrated when we were told that the payment made on XX/XX/XXXX in the total of {$8000.00} was NOT applied to the account and was being held for 30 days. Asking for reasons as to why this was being held and reasons why I was not notified of this hold in funds issued by the bank, prior to me having to call almost a month later, was left unanswered. The representatives could not provide an answer as to where the money was or why it was being held and noted they could not release it until the 30 day mark hit, which was noted to be on XX/XX/XXXX. They advised they typically have a button to click in order to request a release sooner then noted and that this was not available at the time of our call as well. Further, more transfers took place and I finally reached a case manager who was still unable to assist in providing any information whatsoever other than that the RISK department placed the hold on the payment issued to my account and the only way to get a resolution was to open a case claim and we would then have to wait another 7-10 business days for a response at minimum. The funds were finally released as noted on XX/XX/XXXX. 

I find this being a poor way of doing any kind of business given that there was absolutely no notification on this hold of payment and no reasons as to why it was being held. The payment was made online through the Wells Fargo online banking account and was issued through my personal bank account, to which was previously verified by Wells Fargo, for processing etc. per their regulations and protocols. The verification was done through their trial deposit and credit system. These test transactions they issued were reported as requested by Wells Fargo and thus having our account being verified for ease of online payment ability PRIOR to the payments being issued and withheld. Given no notice on the hold for payment, this could have caused many issues in expecting funds to be available and not having them truly be without any knowledge of such. I believe each consumer should be notified if a payment they willingly issue on time or prior to dates due is being withheld and not applied to the account as shown directly on the consumer end. When I see the payment reflected on my account, this shows me it has been applied to the account balance. Why it was not notified of being held and why it's been reflected on the client end while still being held against the account, I believe is wrongful practice. I am reporting this issue and experience as I find this to be a huge issue that may affect others as well. I have been advised by an alternate banking institution that this practice is not fully legal and that the consumer must be notified upon a hold of any payment or debit from an account through a banking institution and that partial funds should have been released if anything prompted a hold for risk factors up to a certain amount. The funds were being held directly by Wells Fargo and not third parties. I have yet to receive an answer as to why the funds were held or any light shed to the situation and having to wait yet another so many business days to obtain any answers. Further disclosure was received that we should have some sort of update by XX/XX/XXXX as per attachment.

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