Consumer complaint received 2023-09-15
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: WELLS FARGO & COMPANY (WA)

On or about XX/XX/2023, I contacted Wells Fargo Bank 's escrow department via their online portal ( https : XXXX ). The purpose of the contact was to update my fire/liability coverage on the property as Wells Fargo XXXX XXXX I submitted the " proof of insurance '' via the " mycoverageinfo '' website, along with instructions on how and where to send the policy premium, which was due prior to XX/XX/2023. 

On XX/XX/2023, my insurance agent contacted me indicating they had not received payment for the fire/liability policy yet and that failure to pay the premium as agree could lead to a lapse in coverage and/or cancellation of the policy. So, I contacted Wells Fargo escrow at : ( XXXX ) XXXX I explained to the Wells Fargo escrow person who answered the phone ( recorded line ) that I had submitted my " proof of insurance '' last month, but that my insurance agent had not yet received the policy premium payment. The escrow person indicated they had " mailed a paper check '' out to the insurance carrier the week previous. I then explained that my instructions for paying the insurance premium were submitted with my " proof of insurance '' and contained specific instructions on making an electronic payment to my agents company - not directly to the insurance carrier. The escrow person then indicated it was Wells Fargo procedure to send paper checks and to send them only to the insurance carrier. I told the escrow person this was unacceptable as a paper check was not the procedure the insurance agency or carrier uses to ensure premium payments are properly credited to the applicable accounts.

Next, I called my insurance agent and asked if he would get on a 3-way call with me and Wells Fargo escrow . He agree but the escrow person told him basically the same thing she had told me. Namely, Wells Fargo escrow only sends out paper checks directly to the insurance carrier and does not use electronic transfer ( and not to the insurance agency ). The escrow agent did offer to cancel the paper check, issue a new paper check, and " overnight '' it to the same po box they have on file for the insurance carrier ( XXXX ). I told the escrow agent this wasn't acceptable because the policy premium was due and payable on XX/XX/2023! 

I then asked if Wells Fargo escrow would reimburse me if I paid the premium out-of-pocket to avoid a lapse in coverage. The escrow person indicated they were not allowed to do that. So, we ended our call with Wells Fargo without any resolution to the problem of getting {$3300.00} in escrow funds to my insurance agent so that he could pay the insurance wholesaler who, who in turn paid XXXX for the insurance coverage. What ended up happening was that I paid the policy premium out-of-pocket to avoid a coverage lapse. But I still have been reimbursed by Wells Fargo escrow. 

I think Wells Fargo 's intransigent escrow policy of issuing only " paper checks ' is antiquated, burdensome, and slow. Also, they waited until the eleventh hour to mail our a paper check and then did so to the insurance carrier 's address ( who apparently does not accept payment in this manner ). The escrow monies associated with my mortgage are held by Wells Fargo for the purpose of paying taxes and insurance on my property. They have a fiduciary responsibility to tend to these matters and to ensure the payments are made on time. Had I not taken out a personal loan and paid the insurance premium, my fire/liability policy may very well have lapse. This is unacceptable and it was avoid able had Wells Fargo followed the instructions that were uploaded with my proof of insurance on XX/XX/2023.