Consumer complaint received 2015-07-14
Company: WELLS FARGO & COMPANY
State: AL
Product: Mortgage
Sub-product: Home equity loan or line of credit
Issue: Credit decision / Underwriting

Complaint:
Recently I obtained a copy of my credit report and was surprised to see that my previous Home Equity Line of credit is being reported as a charge off. Per my knowledge it was never charged off if it was I was never told. This loan was refinanced as a result of it maturing. The new account is being reported on my credit by the same creditor Wells Fargo. This loan went from a Home Equity Line of Credit to a Home Equity Loan. Through no fault of my own the application process was delayed for months. The original application was made around the beginning of XX/XX/XXXX end of XX/XX/XXXX and it took them at least XXXX months to complete this process maybe XXXX. The original application was made with a Home Equity Specialist by the name of XXXX XXXX. Evidently XXXX XXXX either left the company or was transferred during this time because my loan file was transferred to a XXXX XXXX. I also dealt with a gentleman by the name of XXXX XXXX whom I was told was the team leader of the Home Equity division. Throughout the process I was told by XXXX XXXX that this loan would not be reported on my credit as delinquent and to not worry about calls from the Loan Modification department because my loan was in process. Strangely while going through this process I received a call from XXXX " XXXX '' XXXX XXXX in XX/XX/XXXX regarding my new application for an Equity loan. Additionally I received an email as well. I informed XXXX XXXX that I had not made a recent application and that my application had already been approved back in XXXX and I was just awaiting the underwriting department to complete their job. I inquired and asked if someone had submitted a new application for me because I was still under the impression that my original application submitted in XX/XX/XXXX was in process and was never informed that it had been denied nor had I withdrawn it. As I understand Regulation B you are required to inform customers within XXXX days of receipt of their completed application whether it is approved, denied or you are offering a counter offer. After this I noticed that the application number on my correspondence had changed. Prior to this situation I paid my account on time and it was always current. 
I am deeply disturbed by the fact that this loan was reported as delinquent and ultimately reported as charged off. I feel that I was ultimately deceived and mislead by the Wells Fargo mortgage staff into believing that this would not be reported on my credit as delinquent. This deceptive practice has ruined my credit and made it impossible for me to secure additional credit. Additionally, during this time I informed the agent that I was dealing with that I was under a lot of stress due to my Mother suffering a serious illness and this situation just added to my XXXX. Never in my wildest dream did I imagine that this loan would be reported on my credit as a charge off while undergoing the banks application and underwriting process. I would appreciation some resolution in this matter and this item removed from my credit. I am in a state of complete confusion as to how a loan can be reported as a charge off during the underwriting process and the customer not be informed. I feel that this practice is unfair to the unknowing consumer.

Company public response: Company chooses not to provide a public response
Company response to consumer: Closed with explanation