Consumer complaint received 2022-09-23
Company: WELLS FARGO & COMPANY
State: FL
Product: Checking or savings account
Sub-product: Checking account
Issue: Managing an account
Sub-issue: Deposits and withdrawals

Complaint:
Today, XX/XX/2022 I deposited a {$1800.00} check to my daughter 's checking account at Wells Fargo in XXXX, XXXX. I am the payor. The check was drawn on my credit union checking account at XXXX XXXX XXXX in XXXX, XXXX. My daughter has been a customer of Wells Fargo for 15 plus years. Her checking account, of which i am joint owner, has always been in good standing. During the deposit transaction, the teller informed me that there would be a 7 day business hold making only {$220.00} immediately available. As I was depositing a local check, the length of the hold surprised me. Upon questioning of the hold, the teller informed me the automated system placed the hold with a message " doubtful for collection ''. As the check was drawn on my credit union account and i was the payor, I was perplexed. I now questioned the teller and a member of management who could not offer any further explanation simply repeating the automated system assigned the hold with the message " doubtful for collection ''. I proceeded with the transaction and accepted the hold. I left the bank and went directly to my credit union to ascertain if there was some problem with my credit union checking account. I was told there was no problem with my account. It was in good standing and personnel offered no explanation as to the cause of Wells Fargo 's automated system considering my deposited check " doubtful for collection ''. I left the credit union and decided to visit another branch location of Wells Fargo to hopefully obtain additional information. I explained the situation and was informed the transaction would have been handled the same at that branch. I was further informed that no Wells Fargo employee or member of management could override the automated hold system. I was told to do so could result in termination. As my daughter is a long-time customer of Wells Fargo XXXX XXXX ... .her accounts have always been in good standing ... ... ... and her checking account balance greatly exceeded many, many times over the amount of the check ... ... .I found this policy, that manual overrides could not be made by employees or management, to be asinine. Given the prior consumer violations and fines levied on Wells Fargo, I have to question if the 7-day hold placed on my local deposit to be intentional and a possible violation of federal law and Reg CC. In placing a 7 day hold instead of a local hold of 2 days, the bank has additional time for the check to clear and lessen the risk of potential loss. If the bank is placing an excessive hold on my deposit in violation, I believe, of Reg CC, they are doing the same thing to many, many others. Truthfully, it would make sense to extend the check hold to lesson the risk of loss. But, as i said, in doing so, I believe the bank is violating federal law.

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