Consumer complaint received 2023-08-21
Product: Checking or savings account — Savings account
Issue: Problem with a lender or other company charging your account — Transaction was not authorized
Company: WELLS FARGO & COMPANY (CA)

I am writing to bring to your attention a matter of significant concern pertaining to my business entity 's financial transactions and the subsequent mishandling of the situation by Wells Fargo Bank. I, XXXX XXXX XXXX, represent one of the partners of XXXX XXXX XXXX, a California-formed Limited Liability Company XXXX 

On XX/XX/XXXX, XXXX XXXX XXXX initiated a banking relationship with Wells Fargo Bank, including the application for a Line of Credit ( LOC ). During the process of applying for the LOC, the bank requested our Company Operating Agreement as part of the requisite documentation. The terms outlined in the operating agreement strictly prohibit the withdrawal of company funds to personal accounts by any of the partners.

Following due process, Wells Fargo approved and issued the LOC, with the corresponding LOC card arriving on XX/XX/XXXX. Regrettably, an incident of grave concern arose on the same day when XXXX of my partners ( XXXX XXXX XXXX falsely reported the loss of the LOC documents to the bank. Subsequently, on the same day on XX/XX/XXXX this partner XXXX XXXX XXXX XXXX, using the LOC document opened a online account with WellsFargo and on XX/XX/XXXX, my business partner surreptitiously moved the entirety of the XXXX funds into their personal accounts. 

At XXXX XXXX  on the morning of XX/XX/XXXX, the partner XXXX XXXX XXXX XXXX initiated three online transfers. Recognizing the gravity of the situation, I immediately visited the Wells Fargo branch as soon as it opened at XXXX XXXX, where I promptly lodged a complaint regarding the fraudulent transactions. Additionally, I formally documented the incident in an email communication to the bank, a copy of which is enclosed for your reference. 

Following these actions, I engaged in correspondence with Wells Fargo 's online fraud team, who confirmed that the fraudulent transactions were carried out in a single login session linked to my partner 's account. The assigned case number for this matter is XXXX, and I communicated directly with a Wells Fargo XXXX named XXXX XXXX at XXXX. 

Wells Fargo was successful in reversing XXXX of the three unauthorized transactions, which accounted for a wire transfer of {$10000.00}. However, the remaining two transactions, totaling {$24000.00}, were unfortunately not recoverable. These transfers were carried out by my aforementioned business partner, whose identity was conclusively determined by the bank 's investigation. 

I wish to emphasize that I have taken all necessary actions to address this distressing situation. I formally lodged a written complaint with Wells Fargo, providing substantial evidence and a detailed account of the events as they unfolded. Despite my earnest efforts to rectify the matter, Wells Fargo 's response has been disappointingly inadequate, with no meaningful progress towards recovering the lost funds. 

Subsequent to this incident, I pursued legal recourse against my business partners, culminating in a civil case filed in XX/XX/XXXX. Furthermore, in XX/XX/XXXX, I received a communication from Wells Fargo, demanding payment for the outstanding LOC balance. I promptly contacted Wells Fargo 's collection department, apprising them of the ongoing legal proceedings and reiterating that the matter was being diligently addressed. It is with deep regret that I must now convey my frustration, as on XX/XX/XXXX, Wells Fargo unilaterally debited {$26000.00} from my personal account to cover the LOC obligation. This action, predicated on my status as a guarantor, has only compounded the distressing situation. 

I have engaged with Wells Fargo 's branch personnel, who have initiated a formal complaint with their back-office departments. Despite this, no tangible resolution has emerged thus far, leaving me with a notable sense of disillusionment. I possess a comprehensive record of the unfolding events, replete with pertinent documents, which attest to the sequence of occurrences as presented. 

It is my ardent desire to see this matter resolved equitably. I implore Wells Fargo to promptly reimburse the embezzled funds and redirect recovery efforts towards the responsible parties. Furthermore, I beseech the bank to reconsider the precipitous deduction from my personal account, given the ongoing legal proceedings and the circumstances surrounding this case. 

Several pressing questions demand attention : a ) Wells Fargo 's discernment of the fraudulent nature of the transactions is evident, as evinced by the blocking of one transaction. What interventions were undertaken to forestall the two subsequent unauthorized transactions? 
b ) The interval between XX/XX/XXXX, and XX/XX/XXXX, witnessed no substantive efforts by Wells Fargo to retrieve the misappropriated funds. What actions were undertaken during this period to address this issue? 
c ) Wells Fargo successfully identified the initiator of the fraudulent transactions and traced the funds to an internal account. Why was it not feasible to recover the funds? 
d ) I, as a guarantor and the individual who reported the fraudulent activity, expected that Wells Fargo would prioritize the resolution of this matter. Regrettably, this situation appears to have been mishandled internally. 
XXXX ) While Wells Fargo suggested legal recourse for me against my partners, the associated costs eclipse the contested amount. Wells Fargo 's decision not to pursue legal action contradicts its suggestion that I should rely on the legal system. 
f ) The funds withdrawn from my personal account are primarily held jointly with my spouse, and thus largely consist of her contributions. It is noteworthy that the LOC is associated with XXXX XXXX XXXX, an entity distinct from my spouse 's interests. 
g ) The LOC account featured three guarantors, one of whom orchestrated the misappropriation of funds. This unsettling sequence of events underscores a disconcerting parallel between the actions of a guarantor and the bank itself.

h ) When the LOC was applied the whole process of opening a business account and application for the LOC was done in @ 30 to 40 mins, resulting in quickly signing the application documents by all 3 partners. Due to this rush it was not feasible to understand completely what the bank intends to do in case of fraud. In this case the bank took funds out of my account giving a reason that my other 2 partners did not have funds. Did the bank inform us about this while opening the account or did the bank tell that we have protection against fraudulent transactions. The bank specifically asked for the operating agreement, now as per the operating agreement none of the partners can take funds into their personal account. Did the bank specifically tell that the terms of the operating agreement are not read by the bank nor do they intend to do anything about it. 

I urge Wells Fargo to take this matter seriously and work swiftly to find a solution to this mishandled situation. 

I eagerly await your response to this formal complaint, replete with a thorough explanation of the steps Wells Fargo intends to take to rectify this situation. Your prompt attention to this matter is greatly appreciated. 

Yours sincerely, XXXX XXXX XXXX  XXXX XXXX XXXX