Consumer complaint received 2024-03-18
Product: Credit card — General-purpose credit card or charge card
Issue: Problem when making payments — Problem during payment process
Company: WELLS FARGO & COMPANY (CO)

On XX/XX/2024 I mailed a notice of billing error to Wells Fargo notifying the company that a payment made had not posted to the account. The USPS verified that the letter was delivered on XX/XX/2024 to Wells Fargo Card Services XXXX XXXX XXXX XXXX XXXX, CA XXXX. On XX/XX/2024 Wells Fargo charged off the account and reported to the credit bureaus that the account had been charged off and placed in collections. After I sent notice of the Billing Error, Wells Fargo restricted the account, by closing it and not allowing transactions to occur on the account. Wells Fargo violated 15 USC 1666. 15 U.S. Code 1666 - Correction of billing errors ( a ) Written notice by obligor to creditor ; time for and contents of notice ; procedure upon receipt of notice by creditor If a creditor, within sixty days after having transmitted to an obligor a statement of the obligors account in connection with an extension of consumer credit, receives at the address disclosed under section 1637 ( b ) ( 10 ) of this title a written notice ( other than notice on a payment stub or other payment medium supplied by the creditor if the creditor so stipulates with the disclosure required under section 1637 ( a ) ( 7 ) of this title ) from the obligor in which the obligor ( 1 ) sets forth or otherwise enables the creditor to identify the name and account number ( if any ) of the obligor, ( 2 ) indicates the obligors belief that the statement contains a billing error and the amount of such billing error, and ( 3 ) sets forth the reasons for the obligors belief ( to the extent applicable ) that the statement contains a billing error, the creditor shall, unless the obligor has, after giving such written notice and before the expiration of the time limits herein specified, agreed that the statement was correct ( A ) not later than thirty days after the receipt of the notice, send a written acknowledgment thereof to the obligor, unless the action required in subparagraph ( B ) is taken within such thirty-day period, and ( B ) not later than two complete billing cycles of the creditor ( in no event later than ninety days ) after the receipt of the notice and prior to taking any action to collect the amount, or any part thereof, indicated by the obligor under paragraph ( 2 ) either ( i ) make appropriate corrections in the account of the obligor, including the crediting of any finance charges on amounts erroneously billed, and transmit to the obligor a notification of such corrections and the creditors explanation of any change in the amount indicated by the obligor under paragraph ( 2 ) and, if any such change is made and the obligor so requests, copies of documentary evidence of the obligors indebtedness ; or ( ii ) send a written explanation or clarification to the obligor, after having conducted an investigation, setting forth to the extent applicable the reasons why the creditor believes the account of the obligor was correctly shown in the statement and, upon request of the obligor, provide copies of documentary evidence of the obligors indebtedness. In the case of a billing error where the obligor alleges that the creditors billing statement reflects goods not delivered to the obligor or his designee in accordance with the agreement made at the time of the transaction, a creditor may not construe such amount to be correctly shown unless he determines that such goods were actually delivered, mailed, or otherwise sent to the obligor and provides the obligor with a statement of such determination. After complying with the provisions of this subsection with respect to an alleged billing error, a creditor has no further responsibility under this section if the obligor continues to make substantially the same allegation with respect to such error. ( b ) Billing error For the purpose of this section, a billing error consists of any of the following : ( 1 ) A reflection on a statement of an extension of credit which was not made to the obligor or, if made, was not in the amount reflected on such statement. ( 2 ) A reflection on a statement of an extension of credit for which the obligor requests additional clarification including documentary evidence thereof. ( 3 ) A reflection on a statement of goods or services not accepted by the obligor or his designee or not delivered to the obligor or his designee in accordance with the agreement made at the time of a transaction. ( 4 ) The creditors failure to reflect properly on a statement a payment made by the obligor or a credit issued to the obligor. ( 5 ) A computation error or similar error of an accounting nature of the creditor on a statement. ( 6 ) Failure to transmit the statement required under section 1637 ( b ) of this title to the last address of the obligor which has been disclosed to the creditor, unless that address was furnished less than twenty days before the end of the billing cycle for which the statement is required. ( 7 ) Any other error described in regulations of the Bureau. ( c ) Action by creditor to collect amount or any part thereof regarded by obligor to be a billing error For the purposes of this section, action to collect the amount, or any part thereof, indicated by an obligor under paragraph ( 2 ) does not include the sending of statements of account, which may include finance charges on amounts in dispute, to the obligor following written notice from the obligor as specified under subsection ( a ), if ( 1 ) the obligors account is not restricted or closed because of the failure of the obligor to pay the amount indicated under paragraph ( 2 ) of subsection ( a ), and ( 2 ) the creditor indicates the payment of such amount is not required pending the creditors compliance with this section. Nothing in this section shall be construed to prohibit any action by a creditor to collect any amount which has not been indicated by the obligor to contain a billing error. ( d ) Restricting or closing by creditor of account regarded by obligor to contain a billing error Pursuant to regulations of the Bureau, a creditor operating an open end consumer credit plan may not, prior to the sending of the written explanation or clarification required under paragraph ( B ) ( ii ), restrict or close an account with respect to which the obligor has indicated pursuant to subsection ( a ) that he believes such account to contain a billing error solely because of the obligors failure to pay the amount indicated to be in error. Nothing in this subsection shall be deemed to prohibit a creditor from applying against the credit limit on the obligors account the amount indicated to be in error. ( e ) Effect of noncompliance with requirements by creditor Any creditor who fails to comply with the requirements of this section or section 1666a of this title forfeits any right to collect from the obligor the amount indicated by the obligor under paragraph ( 2 ) of subsection ( a ) of this section, and any finance charges thereon, except that the amount required to be forfeited under this subsection may not exceed {$50.00}. ( a ) Reports by creditor on obligors failure to pay amount regarded as billing error After receiving a notice from an obligor as provided in section 1666 ( a ) of this title, a creditor or his agent may not directly or indirectly threaten to report to any person adversely on the obligors credit rating or credit standing because of the obligors failure to pay the amount indicated by the obligor under section 1666 ( a ) ( 2 ) of this title, and such amount may not be reported as delinquent to any third party until the creditor has met the requirements of section 1666 of this title and has allowed the obligor the same number of days ( not less than ten ) thereafter to make payment as is provided under the credit agreement with the obligor for the payment of undisputed amounts. 15 U.S. Code 1666a - Regulation of credit reports ( b ) Reports by creditor on delinquent amounts in dispute ; notification of obligor of parties notified of delinquency If a creditor receives a further written notice from an obligor that an amount is still in dispute within the time allowed for payment under subsection ( a ) of this section, a creditor may not report to any third party that the amount of the obligor is delinquent because the obligor has failed to pay an amount which he has indicated under section 1666 ( a ) ( 2 ) of this title, unless the creditor also reports that the amount is in dispute and, at the same time, notifies the obligor of the name and address of each party to whom the creditor is reporting information concerning the delinquency. ( c ) Reports by creditor of subsequent resolution of delinquent amounts A creditor shall report any subsequent resolution of any delinquencies reported pursuant to subsection ( b ) to the parties to whom such delinquencies were initially reported.