Consumer complaint received 2023-12-22
Company: WELLS FARGO & COMPANY
State: AL
Product: Mortgage
Sub-product: FHA mortgage
Issue: Trouble during payment process
Sub-issue: Paying off the loan

Complaint:
On XX/XX/XXXX, I obtained and purchased homeowners insurance through XXXX, and sent an accord of cancellation to my existing homeowners carrier, XXXX XXXX. I supplied my mortgage company, Wells Fargo, with a copy of the new XXXX Declarations page, a copy of my receipt verifying payment and a copy of the policy. I called Wells Fargo ( WF ) on a recorded line and informed WF of this change. I confirmed via another phone call on XX/XX/XXXX that WF had received my new insurance info, and again on XX/XX/XXXX, when I called WF to order a payoff letter for my mortgage. 
WF provided the payoff letter the following day via email and I forwarded said payoff to my attorney/title company. The payoff was good THROUGH XX/XX/XXXX. 
What I did not know at the time but have now learned from XXXX XXXX ( the cancelled insurance ) is that someone from Wells Fargos insurance department named XXXX initiated a call to XXXX XXXX on the same day that I requested a payoff of my mortgage and requested information about an insurance renewal for me. And this same WF rep, named XXXX ( according to notes read aloud by a rep from XXXX XXXX ) called in again on XX/XX/XXXX and insisted upon making payment to XXXX XXXX to obtain XXXX  insurance policy on my home, THUS now violating Alabama insurance laws and having 2 identical insurance coverages on my home ( one being the one I purchased and 2 being the XXXX policy I cancelled and behind my back, Wells Fargo purchased on my behalf without my consent or a signed contract from me, requesting the XXXX policy ). It seems a bit deliberate considering WF had been put on notice that I was preparing to pay off my mortgage by XXXX. 
Whats even more egregious is that I called in to WF on or around XX/XX/XXXX to inquire how I would be refunded the sum of money accumulated in my escrow account, which was more than {$3700.00}, once I paid off my mortgage. I was congratulated for the intent to payoff, etc., and I was advised that as soon as WF received my payoff they would apply the funds to my mortgage balance and as soon as those funds were applied, I could call back in and request that the escrow balance be transferred to my WF checking account and that the money could easily be wired and if my payoff occurred by Friday XX/XX/XXXX, I could likely have the escrow balance as early/soon as Tuesday XX/XX/XXXX. I needed those funds because I made an initial payment to XXXX for insurance on XX/XX/XXXX but another payment is due on XX/XX/XXXX. Now I will be forced to place that payment that is due on my credit card if my escrow balance is not sent to me by then. 
At this point I need to inform you that not only did XXXX with Wells Fargo completely disrupt my life by going behind my back and obtaining this insurance policy from XXXX that I did not want or need in any way to satisfy any requirements of my mortgage, but XXXX paid over {$12000.00} for said insurance policy to XXXX XXXX, completely depleting my escrow balance of {$3700.00} and the other + XXXX XXXX.she loaned it to me from Wells Fargo , but without informing me, she added on that + XXXX XXXXo the end of my mortgage- bear in mind I had met my insurance requirements as on XX/XX/XXXX and I had called for a payoff letter and the payoff letter actually has the words guarantee payoff amount good through XX/XX/XXXX. 
On Wednesday, XX/XX/XXXX, I supplied my attorney/title company, XXXX XXXX XXXX XXXX and XXXX, with certified funds in excess of {XXXX}, and on Friday, XX/XX/XXXX, before XXXX XXXX said law office/title company WIRED these certified funds to Wells Fargo Home Mortgage . 
On XX/XX/XXXX, at XXXXXXXX XXXX XXXX I verified via phone call with WF agent, XXXX, that WF had received my payoff. XXXX advised that once received it can take a few hours or a few days to process. 
Then I informed XXXX that I received the most peculiar email from XXXX XXXX ( the former insurance company ) that morning after I walked out of my closing. The email stated that XXXX required a signed statement from me, stating I had not had any damage to my property during the period from XX/XX/XXXX until XX/XX/XXXX and that in order to reinstate me, XXXX needed my signature on their form. 
I then checked my WF online portal and discovered that my escrow account had been depleted down to a balance showing XXXX. 

For the record, I did not fill out or sign this form. 
While XXXX had me on hold inquiring from her WF supervisor as to what was happening, I called my former local insurance agency who had sold me the XXXX policy from XX/XX/XXXX, which I canceled one day prior to expiration, on XX/XX/XXXX, to ask the local agency why I would be receiving such an email from XXXX regarding reinstatement, when we had sent XXXX an accord of cancellation on XX/XX/XXXX. 
When WF agent XXXX returned to the line, XXXX informed me that Wells Fargo mailed XXXX XXXX a check in excess of XXXX} on XX/XX/XXXX. 
XXXX then informed me that she had received permission to place a stop payment on that check to XXXX for more than XXXX}. She said that her department would advise XXXX XXXX. That is not what happened. No one from WF reached out to XXXX on Friday XX/XX/XXXX. Instead, XXXX reached out on Monday to inform XXXX ( according to their notes ) that a stop payment had been approved but XXXX was stopping the stop payment and requested that the payment be admitted. 
So on Monday, XXXX advised me that XXXX XXXX was processing payment from Wells Fargo but that because I am the insured I can cancel the policy and that a refund will be sent to me. 

XXXXXXXX XXXX story on Friday XX/XX/XXXX is in direct contrast to what I learned from the XXXX agent who read me the notes off the account on XX/XX/XXXX, on a recorded line. XXXX claimed that XXXX sent Wells Fargo a late notice and request for payment, and that it is " standard procedure '' for WF to blindly pay bills when they receive them and that WF customers cancel/obtain new/change insurance companies daily. XXXXXXXX XXXX explanation made it sound like WF had done nothing wrong and their actions were everyday normal operations. 
WF 's actions are currently damaging my credit score. My score has gone from XXXX to XXXX with the reason why as stated that my mortgage balance has INCREASED by over {XXXX} and also that my payment is LATE. See photos attached below. 
Wells Fargo has been in receipt of payment of more than the payoff balance stated in their letter of guarantee sent to me on XX/XX/XXXX, and WF is holding my certified funds and failing to apply to my mortgage balance. WF is not offering me any explanation as to why they are not crediting my account, and no one I speak with can provide me with an explanation of " XXXXXXXX XXXX '' actions, and XXXX is not making herself available to me. 
I have checked the portal daily, and my mortgage balance is showing over {XXXX} with a message that my payment is late and a late fee applied on XX/XX/XXXX. 
Everytime I call into WF I am advised that this is an attempt to collect a debt, blah blah.

It is very stressful to say the least. Ive just depleted all the money I have to my name- my entire lifes savings to payoff my mortgage and Wells Fargo has had the money for over one week and they are not applying the payoff and more egregiously they are making reports to the credit bureaus that I am late and that my balance has increased. 
Please help me resolve this matter. Thank you in advance for your assistance.

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