Consumer complaint received 2020-08-07
Company: WELLS FARGO & COMPANY
State: NC
Product: Payday loan, title loan, or personal loan
Sub-product: Personal line of credit
Issue: Problem when making payments

Complaint:
We began a small business n XXXX XXXX XXXX, XXXX XXXX a C Corporation, in XXXX, as a self directed IRA, using our retirements savings as funding. As part of that, we opened a secured loan with Wells Fargo in XXXX XXXX XXXX for a line of credit. In XXXX we paid off that line of credit and closed it. We had our home mortgage, business accounts and personal accounts all at Wells Fargo. In XXXX Wells Fargo approached us about opening a new line of credit. We were very clear that we would not, under any circumstances, sign for anything or agree to anything that obligated anything other than the assets of the business - specifically, we would not sign a Personal Guarantee. We were told that Wells Fargo wanted to partner with us as a small business and that we had shown credit worthiness and would not ask for a Personal Guarantee. The line was opened for $ XXXX, without us signing anything, and we used it ( as sparingly as possible ) until XXXX. We were charged near-usurious rates but were told that it was because it was unsecured and guaranteed internally. In XXXX because of the bad publicity of Spring Break and hurricanes, the area was no longer family friendly and business went poorly until we finally closed in XXXX of XXXX. We felt horrible and had lost everything but we dissolved the business as required by State and Federal laws. All proceeds from liquidation were kept in the Wells Fargo account and we worked to try to see the franchise to pay off the line of credit. From closing in XX/XX/XXXX until late XXXX we paid from he Wells Fargo account to the line of credit almost {$1000.00} per month. When we realized we could get nothing for the franchise we closed the line of credit, moving what was left in the business account to the balance of the line of credit. The ending balance of the line of credit was $ XXXX. We moved to North Carolina to gain employment but updated our contact information with Wells Fargo and did not avoid them. When Wells Fargo asked us to pay the balance we advised them that this was a XXXX XXXX obligation and the assets had been dissolve and there were no funs remaining. They could see this from the account activity as everything was at Wells Fargo. We didn't hear anything from them until I received a letter from a XXXX XXXX XXXX attorney in XXXX, NC demanding payment saying we had personally guaranteed the line of credit. Obviously Wells Fargo had turned it over to this attorney for collection. I scoffed at this as I knew it was not true, we had signed nothing. He has since filed a civil law suit in XXXX for collection and produced a document that purports to have our signatures. The signature that is supposed to be my wife 's ( XXXX XXXX ) isn't even close. The signature that is supposed to be mine looks like mine, but I never signed anything and that is the simple truth and fact. The document is not witnessed or notarized and is outright fraud. They give a line of credit for XXXX and don't even have it witnessed or notarized? I am incensed that this happened as the people at this bank knew us well and understood completely our situation ( all or finances ere there ) and that I had already used my entire retirement, I'm XXXX, and would not obligate any more personal funds. We talked and discussed this like neighbors, we saw them almost every day. I couldn't believe what had happened and then I researched and found the exact pattern that was used on us had happened many thousands of times during this exact time period and resulted in a class action suit and a fine of billions of dollars against Wells Fargo. They try to get every possible account from their customers ( " eight is great '' ) they make false assurances and forge signatures and paperwork. The patterns and accounts we read about that they were found guilty of doing was like reading an account of our situation exactly. I wanted to join the class action suit but found that the deadline had passed ( I wonder if they waited until after to send this to collections ). We are not deadbeats and pay what we owe and we feel horrible that the business ended, but we did everything right, this is not something we owe and we are the victims of fraud and now I feel, extortion. We also had problems with them falsifying some of our mortgage paperwork but we fortunately were able to resolve that, so nothing that they have been found guilty of doing surprises me now. I didn't know what had happened to us until much later and the deadline had passed but I would still like to file a report and warn others.

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