Consumer complaint received 03/29/2016 about Student loan (Non-federal student loan) with WELLS FARGO & COMPANY (NJ).
Issue: Dealing with my lender or servicer
Sub-issue: Trouble with how payments are handled

Complaint: I have a private loan with Wells Fargo that I have paid on time religiously for 4 years. The payment is $ XXXX but I always pay {$200.00}. Over the years I frequently paid well before each month 's due date so that I would not forget. Recently, I received an email that my XXXX, 2016 payment, due on XXXX/XXXX/2016, was past due. This was confusing as I 'd made the XXXX payment on XXXX/XXXX/2016 -- after I paid the XXXX bill on XXXX/XXXX/2016 ( due on XXXX/XXXX/2016 ). I do n't think it is unreasonable to assume that, given my history of early payments, and that my XXXX payment occurred after the XXXX payment and billing cycle, that my XXXX/XXXX/2016 payment was intended for XXXX. 

I called Wells Fargo and was told that any payment made 20 days prior to the due date would be counted as an additional payment, not for the next month due. I should be clear again that I did n't overpay XXXX by {$200.00}. I made a separate payment of the same monthly amount that I always had, frequently very early, with no issue at all. I was told that the XXXX/XXXX/2016 payment could not simply be applied to XXXX but had to be refunded. I was then told that, because I do n't have a Wells Fargo checking account, that my payment would have to be refunded by mail, which would take " a minimum of 3 weeks. '' I was having this conversation with Wells Fargo Customer Service on XXXX/XXXX/2016, 6 days after the XXXX due date. This meant that Wells Fargo 's own process for refunding a payment that should have applied to XXXX would indeed have made me delinquent for the month. Is it fair that a financial institution can structure payments and refunds in such a way that it makes an otherwise responsible and timely customer delinquent on their debts? I raised this question to the Wells Fargo staff who informed me this was " just the way it is. '' To which I responded with skepticism, saying that this new system was probably just an inventive way of generating late fee revenues in a low interest rate environment. The representative said nothing. 

I called Wells Fargo again today, XXXX/XXXX/2016, to ask about the status of the refund. I was told it would be returned in the same manner in which I paid -- electronically to my non Wells Fargo checking account. This is welcome news but in direct contradiction to what I was assured was the only method of refund just 1 business day prior. Even the representative today could n't explain the change ( which had not been pro-actively communicated to me in any way -- as far as I knew I should be watching for a paper check in the mail in 3 weeks time ). Was the initial response on Friday a way to make me open an account with Wells Fargo that I otherwise would n't have? I have no idea but the inconsistency is as unprofessional and unfair as the initial insistence on delayed paper check refund itself. 

This is unacceptable behavior from a financial institution that has a responsibility to treat clients with respect and holds so much power over that individual 's credit history.

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