Consumer complaint received 2020-07-06
Product: Credit reporting, credit repair services, or other personal consumer reports 
Sub-product: Credit reporting
Issue: Incorrect information on your report
Sub-issue: Account status incorrect
Company: WELLS FARGO & COMPANY
State: CA

Complaint:
This complaint is regarding an auto loan through Wells Fargo Dealer Services, account # XXXX for a XXXX XXXX. I was the registered owner of the vehicle, and Wells Fargo was the legal owner. 

On XX/XX/XXXX, the vehicle was towed by the XXXX XXXX Police Dept. In contacting the XXXXPD, I was advised the car would only be released to the legal owner, Wells Fargo Dealer Services. I was in the process of disputing the towing of the vehicle and any unpaid tickets. To date, I have not received any correspondence ( phone or written ) from Wells Fargo on this loan, the vehicle, and the account. Also, the XXXXDP has never made contact about picking up the vehicle or any money owed. Given I never received any information from the Wells Fargo or the XXXXPD, I was under the impression that Wells Fargo repossessed the vehicle, sold it, and closed the account. 

In XX/XX/XXXX, I noticed on my credit report that Wells Fargo had sent this account to collections without any notice or correspondence. They reported the account as a charge off and bad debt in the amount of XXXX. When I contacted Wells Fargo about this situation, they refused to provide any documentation on attempts to contact me about the account and the debt owed. 

I requested documents from the DMV to determine what happened to the vehicle. Per the DMV documentation, a lien sale was authorized on XX/XX/XXXX. The notice of the lien sales was sent to Wells Fargo, with a copy to me at an incorrect address. Therefore, I never received notice of the intent to sell or authorized the sale of the vehicle. On XX/XX/XXXX, the lien sale was conducted, the vehicle sold for {$4200.00} and XXXX in fees. 

To resolve this issue, Wells Fargo Dealer Services to cease all debt collection activities, remove derogatory debt collection reporting from all credit bureaus, and forgive the bad debt in the amount of XXXX. This issue is a contract dispute where Wells Fargo allowed the vehicle under contract to be sold via a lien by a 3rd party. They did not inform me of the sale and sent me to internal collections without any notification. 

The contract titled " Motor Vehicle Retail Installment Sales Contract '' dated XX/XX/XXXX ( the " Contract '' ), is an adhesion contract and unconscionable, accordingly Paragraph 2b on page 4 of the contract would be strictly construed against the " Seller '' ( Wells Fargo Dealer Services ). Hence, the " may '' in paragraph 2b on page 4 should be a " shall '' given the fact that the entire contract talks about what the " Buyer '' should do and what the " Seller '' ( Wells Fargo Dealer Services ) should do. 

Consequently, Wells Fargo should have paid the lien and retrieved the vehicle and had the " Buyer '' pay what Wells Fargo paid per Paragraph 2b on page 4 of the contract. Wells Fargo 's failure to do that and, thus, the car sold in an auction, means Wells Fargo technically repossessed the vehicle. Civil Code 3519 ( " He who can and does not forbid that which is done on his behalf, is deemed to have bidden it '' ). 

To resolve, Wells Fargo needs to close the account and remove this as a collection item from my credit report. As mentioned, I have not received any correspondence or documentation from the lender concerning this account since XX/XX/XXXX. It should be considered a closed account and removed from my credit report, as it is a violation of the Fair Credit Reporting Act. 

This suit involves a contract dispute where Wells Fargo allowed the vehicle under contract to be sold via a lien by a 3rd party. They did not inform me of the sale and sent me to internal collections without any notification. 

Wells Fargo made no attempts to retrieve the vehicle, collect the money from the lien sale, contact me regarding the lien sale, or contact me regarding any debt owed. 

Wells Fargo has released their right to any money owed or debt from the loan account. Wells Fargo allowed the vehicle to be sold and did not collect the money from the vehicle sale. Again, the Wells Fargo Dealer Services needs to cease all debt collection activities, remove derogatory debt collection reporting from all credit bureaus, and forgive the bad debt in the amount of XXXX.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation