Consumer complaint received 2016-10-03
Product: Mortgage — Home equity loan or line of credit
Issue: Application, originator, mortgage broker — 
Company: WELLS FARGO & COMPANY (CA)

XX/XX/XXXX : We received a call from a Private Banker at the Wells Fargo XXXX [ CA ] Main Branch offering to lower the interest rate on our $ XXXX Home Equity Loan. When asked why WF would want to make less money on our loan, she replied was that if Wells Fargo does n't offer lower rate, someone else will. We initially said " No, '' because of what WF did to us in XX/XX/XXXX when they fiddled with our accounts and money ( opened a {$100000.00} line of credit and a credit card without my knowledge or permission ). She assured us that that would not happen. We then asked what it would cost she replied, " absolutely nothing ; it wo n't cost you a single penny. '' We told her we would consider her offer with one caveat - i.e., that absolutely nothing else changed except for the lower fixed rate. She assured us that " nothing else will change and there will be no fees. '' We agreed for her to check into it ; however, we subsequently received letter from WF telling us that our application was being reviewed - wait, what application? We thought all she was going to do was lower our rate and change it from a variable to a fixed. 

XX/XX/XXXX : Went to XXXX Branch to sign paperwork and were informed that it would not be fixed rate but variable rate ( Lie No. 1 ) and she then pulled out the documents -- we thought we would be signing a piece of paper, not a ream of paper. We immediately noticed that the documents were written for a {$250000.00} ( Lie No. 2 ) -- wait, {$250000.00}? She initially assured us that nothing was going to change except the interest rate. 

XX/XX/XXXX : Statement for our original XXXX line of credit included a {$50.00} Termination Fee - wait, we were assured that this transaction was not going to cost us a single penny ( Lie No. 3 ). Also, with our original line of credit, the {$75.00} annual fee is waived due to our PMA ; this new account states that it is only waived for the first three years ( Lie No. 4 ). 

XX/XX/XXXX : Began seeing banner on our online account stating, " Reminder : After XXXX/XXXX/XXXX, access to your home equity line of credit XXXX will end, and you will begin repaying any outstanding balance. '' We also began receiving periodic phone messages from WF stating the same. We thought nothing of it because we have not accessed this account in several years and have already been repaying the outstanding balance well in excess of the monthly minimum. 

XX/XX/XXXX : Began receiving numerous phone messages ( 7 times in 10 days ) regarding the above so decided to call back to see what WF wanted. Basically, it is a sales tactic. They are now telling us that as of XXXX/XXXX/XXXX we will no longer be able to access this account and our variable rate loan ( currently 3.49 % ) will switch to a fixed rate at the going rate at that time ; however, we could lock in a fixed rate now ( at 5.425 % ) because the federal rate may be higher this time next year. It would appear WF is trying to extract almost 2 % more on my money during the remaining term of the loan. Although I 'm sure this is outlined somewhere in the ream of paperwork we signed in XXXX, it should have been brought to our attention then. Also, this goes against our original conversation with the banker who stated that absolutely nothing would change other than lowering our interest rate, changing from a variable rate to a fixed rate, and no additional costs. 

The above is a summary -- I have attached the full account of this saga with more detail.