Consumer complaint received 2021-12-08
Company: WELLS FARGO & COMPANY
State: CA
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Problem with a purchase shown on your statement
Sub-issue: Card was charged for something you did not purchase with the card

Complaint:
On XX/XX/XXXX, a fraudster gained unauthorized access to my online Wells Fargo account. The fraudster was able to initiate a cash advance from the credit card in the amount of {$7200.00} to the checking and from the checking, wired the {$7200.00}, along with {$1900.00} from the checking account ( {$9100.00} in total ) to an unknown account/bank. Prior to this incident, I had a {$0.00} balance on the credit card with an available credit balance of {$7500.00}. I also had {$2000.00} in the checking account. No unusual transactions alerts were triggered. Wells Fargo did not flag either the cash advance or the wire transfer. I have had these accounts for XXXX years and have never authorized a wire transfer out of my accounts. 

I reported the fraudulent transactions to Wells Fargo via telephone and a representative went through measures to issue out a new checking account number, a new debit card and a new credit card. The representative assured me that the matter would be investigated and to rest assured, Wells Fargo would help keep my accounts secure and assist me in restoring the funds taken by the fraudster. However, despite me making multiple calls to check in on the status of the claim, I was given the runaround repeatedly. Several representatives sympathized with me, while others questioned the authenticity of my claim. 

Wells Fargo failed violated the Fair Credit Reporting Act by failing to properly investigate my dispute of fraudulent transactions on my Wells Fargo Checking/Credit Accounts XXXX Despite reporting the fraudulent transactions to Wells Fargo on the day that the transactions occurred, Wells Fargo kept the fees associated with the fraud on the account, which resulted in the credit balance to be overlimit. Additionally, Wells Fargo reported the credit card account as OVERLIMIT to Credit Reporting Agencies ( reported on XX/XX/XXXX ), which resulted in my credit score decreasing by XXXX points. 

I did not know about or authorize anyone to initiate these transactions on my Wells Fargo Accounts. I did not know about anyone who owns a XXXX bank account to which the my funds were transferred to. 
I have attempted to dispute the fraudulent transactions directly with Wells Fargo several times but Wells Fargo has closed these claims with the conclusion that I have authorized these transactions, despite me consistently telling them that I did not authorize or give my authorization to anyone to initiate these transactions. I have also reported these fraudulent transactions to CFPBXXXX XXXX  OCC, AG, FDIC, and the XXXX XXXX XXXX. Report # is XXXX and the report was taken by XXXX XXXX. Wells Fargo has responded to CFPB claims with little to no change. They applied a credit to refund the fees associated with fraudulent balance, however a balance of {$6700.00} remains. A payment on this fraudulent balance is due and Wells Fargo has told me that I will need to pay this balance. On XX/XX/XXXX, I called Wells Fargo to address the lack of action that has been done in regards to my disputes. After being on the line for more than XXXX hours and being transferred XXXX times, the XXXX representative whose name is XXXX from the Customer Advocacy Group reviewed my concerns. He guaranteed that no payment would be due, no late or interest charge fees would be applied and that it would not be reported to the CRAs while the claim was open. He provided me with a reference number for the recorded call - # XXXX XXXX XXXX. A payment was still due, a late payment of {$29.00} was applied as well as an interest charge of {$110.00}. 

I have also disputed the transaction to XXXX twice. The first time, Wells Fargo, responded with a result of " Completed investigation of FCRA dispute - consumer disagrees ''. I filed another dispute with XXXX and it is currently open. 

I complied with the expectations set forth in Wells Fargo Online Use Agreement, in regards to the liability of unauthorized EFTs. 
XXXXI reported fraudulent activity directly to Wells Fargo via telephone on XX/XX/XXXX. Claim was opened and representative confirmed that no further action was needed on my part. 
-Received statement reflecting erroneous/fraudulent charges on XX/XX/XXXX -Sent written notice to Wells Fargo via Certified Mail on XX/XX/XXXX ( within 60 days of receiving the statement showing first unauthorized electronic fund transfer ). 
Per Wells Fargo 's own Online Use Agreement, with respect to Regulation E, my liability " won't exceed lesser of {$50.00}, or the total amount of unauthorized EFTs that occur before notice to us ''. 

I called Wells Fargo XX/XX/XXXX and was able to speak with analyst, XXXX XXXX, who closed out case # XXXX, XXXX, XXXX and XXXX on XX/XX/XXXX. XXXX reviewed that the cases were closed - HOWEVER, she reported that when working with the fraud investigators and other departments in regards to the claim, they deemed the claims for the credit card transactions as FRAUD. XXXX went on to explain that while Wells Fargo acknowledges that the transaction was fraud, they are unable to reverse it because the funds are no longer in the checking account. I explained to her that the funds were not in the checking because the fraudster had wired the funds to an unknown account. XXXX acknowledged that she did see in the notes of my case that the funds were wired to an account at XXXX bank but when Wells Fargo attempted to recall the funds, XXXX would not return the funds- either because the funds were no longer there and/or because the account was now closed. XXXX stated that Wells Fargo did not go further than attempt to recall the funds. I asked if they attempted to track the funds and she said that they did not. Another representative, XXXX, said that if Wells Fargo attempts to recall the funds and the other bank does not cooperate, Wells Fargo does not go further and will not attempt to recall again. 

Wells Fargo has confirmed that their findings surrounding the credit balance are that the transaction was indeed fraudulent. Multiple representatives have identified this fraud to be a trend amongst numerous Wells Fargo customers. Yet Wells Fargo is doing nothing to offer relief or support from the economic hardships resulting from having my accounts completely wiped out by these fraudulent transactions. Wells Fargo failed to conduct an investigation with respect to the disputed information and failed to review all relevant information provided by me in the dispute provided to them and other agencies I reported to.

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 non-monetary relief