Consumer complaint received 2016-10-24
Company: WELLS FARGO & COMPANY
State: MI
Product: Mortgage
Sub-product: Conventional adjustable mortgage (ARM)
Issue: Loan servicing, payments, escrow account

Complaint:
On XX/XX/XXXX, the mortgagors initiated through XXXX, a wire transfer of funds to Wells Fargo in the amount of {$2700.00}. The mortgagors are obligated to XXXX upon a residential mortgage loan ( the " XXXX/Mortgagor Loan '' ) and the wire transferred funds were transmitted as a payment thereon. 

The wire transfer request form mistakenly referenced the XXXX/Mortgagor Loan number, rather than the number of the account maintained by XXXX at Wells Fargo ( the " XXXX/WF Account '' ), where the funds should have been directed. This error was evident on the wire transfer request form, which among other things reflected the name of the mortgagors, the direction for payment to the XXXX/Mortgagor Loan and the Wells Fargo account name, which was that of XXXX. 

The wire transfer was effected and the mortgagors thereafter continuously monitored with XXXX the payment status of the XXXX/Mortgagor Loan. XXXX confirmed that they never received the wire transferred funds. XXXX thereafter attempted to recall the wire transfer on or about XX/XX/XXXX, but the recall was not honored by Wells Fargo. 

On or about XX/XX/XXXX, a trace was initiated by XXXX relative to the wire transfer, upon the direction of Wells Fargo personnel, which elicited a response from Wells Fargo that the account number of the wire transfer ( i.e., the XXXX/Mortgagor Loan number ) did not match the name on their customer 's account where Wells Fargo had placed the funds. This of course would have been the case, as the account number in the wire transfer ( the XXXX/Mortgagor Loan number ) did not refer to a Wells Fargo account. 

During the course of their ensuing discussions with various Wells Fargo personnel, the mortgagors obtained insightful information. The mortgagors were advised that the wire transfer funds had been placed into an account of another Wells Fargo customer ( the " Errant WF Account '' ), whose name was different than that of XXXX. The mortgagors were advised that this deposit was made by Wells Fargo because the account number of the Errant WF Account was similar to the XXXX/Mortgagor Loan number. The mortgagors were informed that Wells Fargo was attempting to but encountering difficulty in retrieving the wire transfer funds from its customer which held the Errant WF Account. The mortgagors were ultimately advised that reimbursement would be unlikely unless they retained legal counsel. 

The mortgagors then retained a law firm which researched the dispute and transmitted correspondence to Wells Fargo, requesting reimbursement, on XX/XX/XXXX. A response to the Law Firm correspondence was thereafter transmitted by the Law Department of Wells Fargo on XX/XX/XXXX, which denied the request for reimbursement by the Mortgagors, citing provisions of the Uniform Commercial Code, UCC 4A-207 ( b ) ( 1 ). 

The mortgagors do not believe that the cited UCC provisions excuse Wells Fargo from providing reimbursement. Based upon information and/or belief : ( 1 ) the full enumeration of the Errant WF Account number was similar but not identical to the full enumeration of the XXXX/Mortgagor Loan number and the wire transfer funds should not have been deposited by Wells Fargo into the Errant WF Account ; and ( XXXX ) the Wells Fargo processor ( s ) possessed information and were aware and knew that the account name upon the Errant WF Account was not that of XXXX, which otherwise appears upon the XXXX/WF Account.

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