Consumer complaint received 2018-07-19
Product: Money transfer, virtual currency, or money service — Domestic (US) money transfer
Issue: Confusing or missing disclosures — 
Company: WELLS FARGO & COMPANY (WA)

XX/XX/XXXX - Due to increased costs for my mom 's managed care my husband requested a disbursement from his retirement fund, now administered by Wells Fargo. 

An electronic transaction was requested, but the Wells Fargo representative told him that they could not use EFT with our bank, XXXX XXXX XXXX XXXX. The representative refused to tell him why, just reiterated that it was not possible. 

He was told that a paper check could be sent. When my husband again requested that the funds be disbursed by EFT as he didn't feel comfortable with a check that large being sent via regular, not registered or express mail as it couldnt be tracked, he was again refused with no reason other than that they could not communicate with XXXX electronically. 

He was asked for his information to send the check. While giving his address he discovered that Wells Fargo had an incorrect zip code on file for us. The zip code they had on file for us is our old XXXX XXXX zip code, codes were changed 7 years ago or more. He corrected Wells Fargo 's representative but was told they couldn't correct the zip code for him. Mind you, they can disburse funds to an incorrect address, but can't correct the zip code! He agreed to the paper check as he didn't realize that the post office was no longer correcting for the zip code change. He was asked for the amount and asked if he wanted taxes deducted from the total. He gave them an amount and told them to deduct the taxes. 

XX/XX/XXXX - The check had not arrived and my husband called Wells Fargo and was told it would arrive in 10 business days and to wait till that amount of time had passed. He asked if they could tell him if the funds had been disbursed and the check mailed. He was told that the check had been mailed XX/XX/XXXX due to the XX/XX/XXXX holiday and given an amount of the disbursement. 

XX/XX/XXXX XXXX appx. We had reached 10 business days and the check hadn't arrived. My husband called Wells Fargo and was told that the check was mailed XX/XX/XXXX. This is not what he was told during the first call. He was also given an incorrect amount for the disbursement it didnt tally with the amount he was given during the first call. 

XX/XX/XXXX same call - I asked to speak to the representative and asked why they couldn't send an EFT to our credit union. They at first refused to tell me, but when I asked if it had to do with incoming and outgoing bank fees the representative said that it was actually because our credit union is not a subscriber to service called XXXX XXXX. THIS WAS NEVER DISCLOSED, IN PRINT, EMAIL OR ANY OTHER WAY TO CUSTOMERS OF WELLS FARGO. This was admitted by the representative on the call. 

XX/XX/XXXX same call - I asked to talk to a supervisor. Once connected I remarked that I hoped the call was recorded and was told that it would be. I heard no tone to indicate that it was being recorded. I asked to have the information on the XXXX XXXX   process and the list of institutions on it emailed to me. I was told that it couldn't be emailed. I asked for it to be sent via regular mail and was told that wasn't possible either. The supervisor said that if I went to the website earlywarning.com I would find all the information there. That's not true. I can't find a list of subscribing banks or financial institutions on the site. So Wells Fargo subscribes to a service that severely limits the institutions that it will transact with and does not at any time, unless openly confronted by an absolutely enraged customer, disclose this. When I pointed out that at no time was this method of doing business disclosed, and that in fact their policy actually constituted non-disclosure, I was coldly told that I could at any time go or have gone to earlywarning.com for the information I wanted. It is not my duty as a customer to anticipate and request disclosure of harmful or restrictive business practices. I would have absolutely no way of doing such a thing since I wouldnt know they were in place unless disclosed to me. Thats why disclosure laws exist. It simply wouldnt have been possible at any time prior to this call to have gone to XXXX XXXX since Wells Fargo had never disclosed to us that we were restricted in the institutions that we could use for electronic transactions. 

I asked the supervisor what would happen if I wanted to do a roll-over of the entirety of our funds by EFT to a banking institution on their list. I was told that Wells Fargo would not do an EFT for a rollover, even with one of their partner banks that subscribes to the XXXX XXXX service. They will cut and send a paper check for the entire amount. This is extremely risky and is not normal business practice in this day and age. I asked why they cant do an EFT with another financial institution subscribing to XXXX XXXX and was stonewalled. To send a huge check through the mail is simply reckless and endangers both the customer and the financial institution sending such a check. I admit I was pretty heated by this time and I hope you can get a copy of the supposedly recorded call, because the supervisor was not helpful, customer-oriented, solution-oriented, or in any way trying to de-escalate the situation. 

XX/XX/XXXX XXXX appx. We called our credit union to check on the accuracy of the information given to us on the funds transfer. Their representative told us that they definitely can accept incoming Wells Fargo transactions and that in fact they had credit union customers who were Wells Fargo employees and had their checks regularly electronically deposited. 

XX/XX/XXXX XXXX Went to the XXXX site to find the list of subscribing institutions that we were told by the Wells Fargo supervisor was posted there. There is NO search function and NO list of subscribing institutions. All information on the site is basically advertising and forms to dispute your credit check if you have been refused service by a member bank due to inaccurate credit reporting by XXXX XXXX. 

XX/XX/XXXX XXXX - Called the federal government to find the correct bank regulation authority and make a complaint. 

XX/XX/XXXX XXXX Called the CFPB to lodge a complaint. I explained the situation at some length and was given help. 

XX/XX/XXXX XXXX appx. - After determining which local branch of the post office would handle mail for our range of zip codes my husband physically went to the post office to see if the Wells Fargo check had arrived but not been sorted out due to the incorrect zip code. He was told by the post office branch manager that they no longer corrected for the XXXX zip code change and that mail with an incorrect zip code for the address would be automatically returned. 

XX/XX/XXXX XXXX - My husband returned home and called Wells Fargo back and asked to have the check voided and requested to have another one issued. Wells Fargo refused to void the check, stating that the zip code had to be corrected before they would void it and issue another check. NOTE THAT THEY ISSUED THE FIRST ONE AFTER REFUSING TO CORRECT THE ZIP CODE. When he asked them to correct the zip code they again refused to do it. He asked them if we could have the funds wired to my mothers Wells Fargo account and was told they could only be wired to an account with his name on it. 

XX/XX/XXXX XXXX appx. - We called my husband 's employer, XXXX XXXX, and asked them to correct the zip code as it proved to be impossible to correct on the Wells Fargo website or over the phone with them. His employer has now corrected the zip code. I explained the situation at some length, and complained that we had no issues till the funds were given to Wells Fargo to manage. Our employer was informed that we will be rolling over the 401K into another account. We were advised by HR that a representative for our Wells Fargo plan would contact us tomorrow ( XX/XX/XXXX ) in the morning. As they will have no power to regulate or change Wells Fargos restrictive manner of trade there is little to hope for from this interaction. 

XX/XX/XXXX XXXX We now realized we would have to wait till the following day to get the check voided and there will most likely be a waiting period before funds can be returned to our account. This point was not clarified by either of the representatives we talked to ; in fact we are still going to have to call them back yet again to get clarification. 

XX/XX/XXXX XXXX - We went to the web page for our retirement account, filtered for transactions between XX/XX/XXXX and XXXX and found the distribution transaction. Since we had been told two different things by two customer service representatives on  separate dates we didnt trust either the fact that a transaction had been made, or that the amount was correct. 

XX/XX/XXXX XXXX My husband called the local Wells Fargo branch to ask if it was possible to open an account and how long it would take for the account to be active and able to accept an EFT transaction. He was told that if he opened an account with {$25.00} before XXXX XXXX PST it would be instantly active. As it turned out this information was both untrue and deceptive. 

XX/XX/XXXX XXXX In order to pay for my moms care and not have her turned out of her retirement home my husband went to my sons credit union and borrowed money from him. Its now too late to deposit the funds into our credit union and we have received a very disturbing call from the retirement facility. 

XX/XX/XXXX after XXXX - In order to have an account available that can accept funds disbursed in an EFT, so they could be received as soon as possible after having the existing check voided, my husband then went to Wells Fargo and opened a checking account using {$25.00}. The intent was to only have this account open long enough to receive one transaction and then immediately withdraw all funds and close it. 

XX/XX/XXXX after XXXX My husband talked with the bank teller when he opened the account and was told that an EFT could not process through this account for two weeks. They had no information on what might cause the wait. I have now found evidence that the two week restriction is so that subscribing institutions can credit check through the XXXX XXXX service. This should have been disclosed by the Wells Fargo bank representative who opened the account for my husband. My husband called Wells Fargo customer service again and asked if they could see the zip code change. Since they could see the zip code change instantly when his employer corrected it, he asked if he could have the current check voided and a new check cut and mailed tomorrow, XX/XX/XXXX. I have absolutely no hope that it will arrive, or that the funds initially disbursed will be returned to our retirement account by Wells Fargo. 

XX/XX/XXXX XXXX appx. - At this point I decided to do some more research on the XXXX XXXX website and here is a direct quote from their site : XXXX XXXX is owned by XXXX XXXX XXXX , XXXX XXXX XXXX, XXXX XXXXXXXX, XXXX XXXX, and Wells Fargo. So in effect by using a service created and owned by them these banks are restricting the trade of other institutions that dont subscribe to the service. THIS IS RESTRAINT OF TRADE, AS THE ONLY WAY TO GET A TIMELY DISBURSEMENT BY EFT FROM OUR FUND NOW MANAGED BY WELLS FARGO IS TO OPEN AN ACCOUNT WITH WELLS FARGO OR ONE OF THEIR PARTNER BANKS. ( Please consult federal government and legal authorities on this point, but my immediate referral is to this link : XXXX XXXX XXXX ) In short, a restraint of trade is any activity that hinders someone else from doing business in the way that he would normally do it if there were no restraints. While federal, state, and local governments can pass laws and regulations that create obstacles for certain kinds of businesses, it is generally considered improper for individuals to restrain one anothers trade in certain ways. Someone who loses business or suffers another injury may have a tort case against another individual whose trade-restraining behavior injured him. I would definitely say that not being able to receive needed funds because of an undisclosed restrictive business practice that may cause my mother to lose her place in her care facility is harmful  behavior and has definitely caused very real injury, both financial and in the form of mental anguish. 

The result of this is that we no longer trust Wells Fargo to act in a professional or ethical manner. We will be rolling over my husbands retirement account into another fund as we do not want to deal with Wells Fargo any longer. Not only do they restrict the trade of other banks by preventing them from using an accepted means of transaction, the EFT, they effectively restrict unknowing and unwilling consumers to using only certain banks if they need to exchange electronic transactions. In fact, this whole incident seems to point to a direct attempt by Wells Fargo to increase their own and partner banks business. Early Warning is a limited liability company owned by XXXX XXXXXXXX XXXX XXXX XXXX XXXX XXXX, XXXX XXXX,. Im sure any of those institutions would be an acceptable EFT partner, but we dont bank with any of them currently and will not be forced to by Wells Fargo to bank with either them or one of their partners in the future. The only solution if we want to make electronic transactions with our banking institution is to withdraw all funds from our 401K and find another fund in an institution not managed by, belonging to, or doing business with XXXX XXXX XXXXXXXX , XXXX XXXX XXXX, XXXX XXXXXXXX, XXXX XXXX, Wells Fargo or XXXX XXXX. This is a definite hardship and I would say extremely restrictive for the average consumer. 

Hidden business practices that put their customers at a financial disadvantage or force them to change their financial institution are not only restrictive, they are unethical business practices obviously intended to forcefully increase the business of XXXX XXXX XXXXXXXX , XXXX XXXX XXXX, XXXXXXXX  XXXX, XXXX XXXX, Wells Fargo and XXXX XXXX at consumers expense. To have such bald disregard for the distress caused to the customer who has to uncover these restrictive practices during a family crisis is unconscionable. They effectively escalated what was a manageable situation with my mothers managed care by preventing us from receiving funds in a timely manner. Since this non-disclosure and hidden back checking is the standard practice of Wells Fargo we hope to be able to influence my husbands employer to seek other fund management. I also hope to be able to have my own employer change their fund management from Wells Fargo Advisors to the company that previously managed our retirement fund. Although we realize that this institution will in no way care or even notice the loss we still believe this will be in the best interest of the hapless employees now badly served by Wells Fargo.