Consumer complaint received 2019-09-03
Company: WELLS FARGO & COMPANY
State: FL
Product: Mortgage
Sub-product: Home equity loan or line of credit (HELOC)
Issue: Trouble during payment process

Complaint:
On XX/XX/XXXX, Wells Fargo sent me a letter advising me that as of XX/XX/XXXX, my property hazard insurance had expired and to please provide them with written evidence of insurance. The letter went on to say Because hazard insurance is required on your property, we plan to buy insurance for your property. You must pay us for any period during which the insurance we buy is in effect but you do not have insurance. I immediately began to investigate why the insurance had expired. Contact with my insurance agent revealed that XXXX XXXX had dropped my policy and failed to notify me at my current address or email. I immediately obtained hazard insurance and sent the necessary evidence of insurance to your company. 
On XX/XX/XXXX, Wells Fargo sent me a second letter stating that my hazard insurance had expired on XX/XX/XXXX. The letter went on not say Because hazard insurance is required on your property, we plan to buy insurance for your property. You must pay us for any period during which the insurance we buy is in effect but you do not have insurance. 
On XX/XX/XXXX, Wells Fargo sent me a third letter that stated Our records still show that there is a lapse in coverage from XX/XX/XXXX to XX/XX/XXXX. An insurance charge of {$610.00} may be charged to your account for the period of time that the coverage was in force. At this point, I contacted the customer service number and was forwarded to the Executive Resolution Department who stated they would investigate my concerns. In reviewing all the Wells Fargo letters and having several conversations with staff members, I asked one question that nobody could seem to answer. My question was How can you buy or provide insurance coverage from XX/XX/XXXX to XX/XX/XXXX when you ( Wells Fargo ) did not know that the property wasnt insured until XX/XX/XXXX? I asked several staff members this question throughout my contact with them, and nobody could provide an answer. I also advised Wells Fargo staff that I was never notified of the lapse of hazard insurance by either Wells Fargo or XXXX XXXX until the XX/XX/XXXX letter. I asked staff why would I purchase flood insurance on the property when it isnt required and not hazard insurance as it would make no sense? 
On XX/XX/XXXX, I was contacted by Ms. XXXX XXXX in the Executive Resolution Department, who stated that she had reviewed this matter and since I cant show evidence of insurance, I would have to pay the {$610.00} for the lapse of insurance coverage from XX/XX/XXXX to XX/XX/XXXX. I again asked her how they could charge me for a time period when they didnt have knowledge that there wasnt hazard insurance, and also how could they provide insurance coverage as they ( Wells Fargo ) never knew it wasnt covered? MsXXXX XXXX stated that the loan contract allowed them to charge up to 120 days for insurance coverage and that I would have to pay the charges per the contract which I signed. She further stated that she would be sending me copies of the contract articulating this agreement. I asked Ms. XXXX to please provide me written evidence of insurance on the property obtained by Wells Fargo and she stated that she couldnt do that. I then asked to speak with her supervisor and was quickly told she ( XXXX ) makes the final decision. I asked her what her supervisors name was, at which time she gave me his first name, but refused to provide his last name. This made me wonder what she was hiding, and I even made the comment to her So much for transparency. I advised Ms. XXXX that billing me for insurance that was never provided could be insurance fraud and that I would be preparing a Criminal Complaint with the Florida Department of Insurance Fraud and our local State Attorneys Office for filing and prosecution. 
On XX/XX/XXXX, Wells Fargo sent a fourth letter titled Second and Final notice to provide insurance information from XX/XX/XXXX to XX/XX/XXXX. 
On XX/XX/XXXX, Ms. XXXX also sent a letter regarding lender placed insurance and confirmed that the {$610.00} charge is valid for the lapse of insurance coverage. She also stated that she respectfully denied my claim of insurance fraud due to her explanation of the charges. 
In closing, my question still remains unanswered ; in that how can Wells Fargo charge me for insurance coverage that was never purchased or provided as documented in their letters to me dated XX/XX/XXXX and XX/XX/XXXX? In Ms. XXXX letter, she admits that Wells Fargo was not aware of the lapse of insurance until XX/XX/XXXX when she contacted my insurance agent. Please tell me, how Wells Fargo can purchase insurance for a time period that has already passed, not to mention, why would they? 
In reviewing the documents that Ms. XXXX provided with her justification of charges letter, it clearly indicates that Wells Fargo can charge If we ( Wells Fargo ) purchase insurance for you. To date, I have never been provided evidence of insurance coverage for the time period in question. 
I feel Wells Fargo continues to engage in deceptive and illegal behavior by charging borrowers for insurance that was never placed on their property, similar to previous documented activity and consent agreement with the Bureau in XXXX.

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