Consumer complaint received 2024-10-07
Product: Checking or savings account — Checking account
Issue: Problem caused by your funds being low — Overdrafts and overdraft fees
Company: WELLS FARGO & COMPANY (CA)

Hello, I am submitting this complaint to the CFPB because I believe Wells Fargos actions constitute unfair, deceptive, or abusive practices ( UDAAP ), in violation of consumer protection laws, and require investigation I am filing a formal complaint against Wells Fargo regarding the mishandling of disputed transactions and the subsequent closure of my account, which has left me with an unresolved balance of approximately {$1000.00}. These events occurred during the COVID-19 pandemic, a period when financial institutions were expected to offer additional protections under the **CARES Act**. 

In XXXX I initiated a chargeback for a transaction that was initially denied by the bank, leading my account to become overdrawn and ultimately closed. Later, Wells Fargo acknowledged that this denial was a mistake, sent me a letter of apology, and issued a check to correct the error. Despite this, the bank now claims that two other disputed transactionswhere they initially issued provisional credits but later reversed themare responsible for the remaining {$1000.00} balance. Given the banks previous mistake, I believe these additional disputes may also have been mishandled.

Furthermore, during the pandemic, I contacted Wells Fargo to inform them that I was experiencing financial hardship and inquired about any protections or assistance available under the **CARES Act**. I was told that no protections were available, which contradicts guidance issued by the **Federal Deposit Insurance Corporation ( FDIC ) **, which encouraged banks to provide flexibility during the COVID-19 pandemic, including fee waivers and extensions on overdraft protection.

Laws and Protections That Were Potentially Violated : 1. **Electronic Fund Transfer Act ( Regulation E ) ** : Requires that banks investigate disputed transactions thoroughly and resolve them promptly. The mishandling of the disputes, including the reversal of provisional credits, may indicate the bank did not follow Regulation E requirements.

2. **Fair Credit Billing Act ( FCBA ) ** : While traditionally associated with credit cards, similar principles apply to debit card disputes. The banks failure to uphold provisional credits during the investigation phase suggests they may not have followed FCBA-like protections for disputed transactions.

3. **CARES Act** : This federal law encouraged banks to provide financial relief to customers facing hardship due to COVID-19. The banks failure to offer any assistance during the pandemic, despite my request, suggests they may not have adhered to these guidelines.

4. **FDIC Guidance** : The **FDIC** urged financial institutions to assist customers by offering fee waivers, reversing charges, and providing flexible accommodations. The banks refusal to provide any support, compounded by their admitted mistake, raises concerns about their failure to meet these standards.

5. **Dodd-Frank Acts Unfair , Deceptive, or Abusive Acts or Practices ( UDAAP ) ** : The mishandling of my account closure and disputes, especially after the bank admitted to one mistake, may fall under the UDAAP provisions, which are designed to protect consumers from abusive banking practices.

Despite the banks error, when I contacted them, I was informed that my account could not be reinstated, and I would have to apply for a new account, with no assurance that the {$1000.00} balance would not affect my ability to open a new account. This ongoing uncertainty further compounds the harm caused by the banks initial mistake, leaving me without clear information on my banking future.

Request for Resolution : 1. A thorough investigation into the remaining {$1000.00} balance and associated disputes to determine if they were processed correctly. 
2. Either reinstatement of my closed account or assurance that the unresolved balance will not hinder my ability to open a new account with Wells Fargo.

3. Acknowledgment of the failure to offer financial protections during the pandemic, exacerbating my financial hardship.

4. A review of the banks practices to ensure compliance with relevant consumer protection laws, including Regulation E, UDAAP, and CARES Act guidance. 

Thank you for your attention to this matter. I look forward to a fair and timely resolution. 

Sincerely, XXXX XXXX Account # : XXXX