Consumer complaint received 2016-09-24
Company: WELLS FARGO & COMPANY
State: FL
Product: Consumer Loan
Sub-product: Installment loan
Issue: Managing the loan or lease

Complaint:
I recently opened a loan with Wells Fargo Bank for a purchase of a Spa/hot tub. There was a line of credit provided that covered the spa cost and some additional monies remaining that would convert over to a credit card. The spa cost was at a fixed rate and the credit card was at another fix rate which was much higher than the rate of the spa. In a review of the billing statements, I requested a due date change as fees were being assessed on the loan. After further review, I realized that there is NO GRACE period on the contract. On the billing statement ( i.e. my adjusted date was the XXXX ) it showed my due date and next to my due date was a late charge on the same date. My concerns are that Wells Fargo Bank NA. The payment address ; XXXX XXXX XXXX, XXXX TX. XXXX. Concern # 1 due to variances in mail delays etc, consumers are charged fees if the payment is not received by and posted to the account by the specified due date. Concern # 2 - on the billing statement the language is vague, unclear with no definitive statements as a late charge WILL occur but the word MAY HAVE TO PAY is listed. When speaking with XXXX XXXX employee id # XXXX he clearly mentioned to me that if the payment is not due on the due date, I WILL be assessed a late charge on the day the payment is due. This information is not clearly disclosed within the contract, or within the billing statement or within any information in writing other than vague words like MAY however consumer are being charged these fees. I feel that Wells Fargo is not clearly disclosing consumer fees, charges, and accurals in a clear and well understood manner. Additionally - the monies that are on my credit card side of the spa purchase is at much higher rates and these terms and conditions are not clear. After speaking to several Wells Fargo - representatives - it was indicated that any fees ( IF WAIVED ) will go toward the principal charge waiver but the consumer will have to still pay the fee upfront and the fee is waived as a principal payment. This is not clear - as with credit cards - consumers pay principal and interest payments. Fees should be removed and if any errors or adjustements are done - the principal balance should be also be adjusted to coincide with the fee waiver based on the days of activity that are being charged within any fee disputes. Wells Fargo Bank NA is taking advantage of consumers by not being clear and concise on fee adjustments, assessments, and waivers. Wells Fargo Bank is removing fees from principal balance reduction but consumers are still be charge interest payments. Fees ( late charges ) are in addition to interest payments and the according to how Wells Fargo system was explained - if a late fee is assessed up front - the consumer will pay the late fee ( still XXXX and the monies of the late fee is then removed as a principal payment?? The fee and any associated interest with the fee should be removed from the principal loan balance. Wells Fargo Bank is charging excessive, unclear, and confusing rate structure on fee assessments with consumers and they are taking advantage of the an average consumer by not being clear and upfront on fee structures but these fees are added to consumers loans and the fees are not clearly disclosed within any Truth and Lending agreements, On line, and if asking for a copy of the contract - no representative can immediately provide the information and the call is escalated - and still no contract is sent to the consumer. This is an unfair practice, Wells Fargo are charge consumer these fees - and telling being upfront on how EXACTLY these fees are assessed and asking for contract information or statements have vague terms and conditions but fees are assessed and if this is the case - the fees should be clearly written in contracts and billing statements for consumers to have a full understanding

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 monetary relief