Consumer complaint received 2016-11-30
Product: Mortgage — FHA mortgage
Issue: Loan servicing, payments, escrow account — 
Company: WELLS FARGO & COMPANY (IL)

On XX/XX/XXXX, I submitted a check in the amount of {$3200.00} with a Wells Fargo stub indicating the amount should go towards additional principal. Again, I sent another payment in the amount of {$3200.00} on XX/XX/XXXX to be applied towards the principal. On XX/XX/XXXX, I called Wells Fargo and they said my mortgage was n't due until XX/XX/XXXX due to my additional payments. They did not apply my additional payments to the principal. They reversed one of the payments, but could n't with the other because it was passed 6 months. They also blamed me for not indicating on the check that the additional funds were for principal and claimed they never received a payment stub. On XX/XX/XXXX, I again made an additional payment towards principal of {$3500.00} and again, on XX/XX/XXXX, indicating on the checks it was for additional principal along with letters. This time, Wells Fargo did not apply the payments to principal again. Note that I am already on automatic payments for the regular mortgage payments. They reversed both transactions. They said that they had the wrong logic on their computer, and my mortgage broker mentioned that it 's a machine that separates the stub/ letter from the check. It was still no excuse because I had indicated on both checks that the payments were for principal payments. So I brought up the payment from XX/XX/XXXX, and they kept blaming me that I did n't send the right documents and did n't indicate on the check it was for additional principal. I told them that I just want an apology for not applying this payment, instead of blaming me since they have a track record for the other 3 payments that they were not applying the payments to principal even with the stub, letter, and indication on the checks. They kept blaming me and saying that I would need to change all of my tax returns. I told them that is my problem and not theirs. I am just concerned how much more interest I had to pay because they were not applying my additional payments to principal. My son, who is a mortgage broker, calculated thousands of dollars in interest, compounded over time. Wells Fargo suggest that I need to make sure the payments go through. How many other customers are working hard to pay their mortgage ahead of time, only to not get the credit of principal reduction and interest reduction? They said they ca n't do anything, blaming me over and over that I did n't indicate my extra payment as additional principal and claimed they never received my stub. Bottomline, they ca n't do anything about this additional principal payment. I told them I will make a report to the CFPB, and they seemed to not care. Beware consumers : You may be thinking you are reducing your principal balance by making extra payments, but Wells Fargo has proven to me that this is not the case when they are not doing their job. What 's worse, is that they will blame you even if you do everything right as far as indicating it on your checks, letters, stubs, etc. How can such a big company not keep their records straight to protect their customers?