Consumer complaint received 2025-09-02 00:00:00
Product: Mortgage — USDA mortgage
Issue: Trouble during payment process — Paying off the loan
Company: WELLS FARGO & COMPANY
State: HI

Complaint narrative:
To : Consumer Financial Protection Bureau From : XXXX XXXX XXXX Loan Number : XXXX Property Address : XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Servicer : Wells Fargo Home Mortgage XXXX : XX/XX/XXXX Subject : Mortgage Servicing Errors, Misapplied Payments, Payoff Discrepancy, and Request for Compensation Dear CFPB Representative, I am submitting this formal complaint regarding Wells Fargo Home Mortgage XXXX XXXX ongoing mortgage servicing errors, misapplied payments, and unresolved account discrepancies spanning a five-year period. Despite thorough documentation and multiple attempts to address these concerns, Wells Fargo has not updated their records or provided resolution for the financial and emotional impact I have experienced as a customer since XXXX. Below is a summary of the issues encountered during my tenure as a mortgage holder, which continued until the sale of my home on XX/XX/XXXX, and included ongoing concerns about business practices. 

Summary of Issues : XXXX. CARES Act Forbearance & Misapplied Payments ( XXXX ) : I was placed in forbearance in XX/XX/XXXX under the Covid 19 CARES Act. Despite making payments from XXXX to XX/XX/XXXX, Wells Fargo failed to apply these payments to my mortgage account. My bank records confirm these payments have been cleared, yet their ledger shows them as unapplied or reversed when I disputed the error on my mortgage account. 

XXXX. Unexplained Refunds & Class Action Settlement ( XXXX ) : In XXXX, I received several refund checks from Wells Fargo. The descriptions for these refunds included misapplied payments, incorrect charges, class action settlement, and escrow overpayment. Although I had previously requested corrections to my account and filed multiple complaints from XXXX to XXXX, the errors were not directly addressed through adjustments to my account ; instead, I was issued refund checks. My concerns led me to escalate the matter to the CEOs office, where I was assigned to another employee rather than receiving a formal audit. These funds were not credited to my mortgage account or reflected in the account ledger. 

XXXX. Failure to Reconcile During Active Dispute : I have disputed these issues for more than XXXX years. Wells Fargo has twice responded, maintaining that their calculations are accurate ; however, the discrepancies remain unresolved. The bank has continued to apply late fees and has not reapplied reversed payments or properly adjusted my principal balance as would be expected, particularly in preparation for a third-party formal audit. Notably, my payoff balance in XX/XX/XXXX showed minimal change from the balance provided in XX/XX/XXXX. 

XXXX. Late Fee Violations : XXXX XXXX own letter from XXXX states that late fees are only assessed after 15 days past the due date. Yet their ledger shows multiple late charges applied within the grace period, violating their stated policy. 

XXXX. Payoff Discrepancy ( XX/XX/XXXX ) : I paid off my mortgage on XX/XX/XXXX, through a title escrow company. The final payoff amount was over {$140000.00}, including escrow, interest, and fees. However, the XX/XX/XXXX, ledger shows a principal balance of {$140000.00}, and no record of the final payoff. This discrepancy suggests missing adjustments and unapplied funds. 

XXXX of XXXX : XXXX. XX/XX/XXXX XXXX a refinance request with Wells Fargo ; however, the process extended until XX/XX/XXXX, resulting in the cancellation of the application. 

XXXX. XX/XX/XXXX Received correspondence concerning a recent missed payment and available options to avoid foreclosure. The associated payment was submitted on XX/XX/XXXX. 

XXXX. XX/XX/XXXX Notification received regarding an extension of mortgage payment suspension. The specific details of this matter remain unclear. 

XXXX. XX/XX/XXXX Receipt of a package containing an approved loan modification agreement. 

XXXX. XX/XX/XXXX Confirmation received indicating completion of the payment assistance process. 

XXXX. XX/XX/XXXX XXXX regarding another recent missed payment. 

XXXX. XX/XX/XXXX Advised to contact Wells Fargo for further assistance with mortgage payments. 

XXXX. XX/XX/XXXX Notification received titled " Notice of Default. '' XXXX. XX/XX/XXXX Mortgage account ledger provided, covering the period from XX/XX/XXXX to XX/XX/XXXX. 

XXXX. XX/XX/XXXX Sent a letter to the CEO due to insufficient support from the mortgage department. 

XXXX. XX/XX/XXXX XXXX issued concerning complaints related to my mortgage account. 

XXXX. XX/XX/XXXX Formal acknowledgment of receipt of my complaint. 

XXXX. XX/XX/XXXX Further resolution provided for my complaint. 

XXXX. XX/XX/XXXX XXXX received to my inquiry. 

XXXX. XX/XX/XXXX Escrow review statement indicated a shortage of {$560.00}, with notification of an upcoming increase in mortgage payment to {$1200.00} effective XX/XX/XXXX. 

XXXX. XX/XX/XXXX Additional resolution regarding my inquiry. 

XXXX. XX/XX/XXXX XXXX reflecting a mortgage payoff amount of {$150000.00}. 

XXXX. XX/XX/XXXX Receipt of a cashiers check and accompanying letter stating misapplied payments to my account. 

XXXX. XX/XX/XXXX Mortgage account ledger received, documenting transactions from XX/XX/XXXX, through XX/XX/XXXX. 

XXXX. XX/XX/XXXX Notification with cashier 's check indicating an error during the payment assistance period, accompanied by instructions regarding IRS reporting and tax liability from the XXXX XXXX XXXX Department. 

XXXX. XX/XX/XXXX Receipt of settlement check pursuant to the class action lawsuit against Wells Fargo, of which I had not previously been aware. 

The final payoff amount when house was sold and closed escrow on XX/XX/XXXX according to XXXX was {$140.00}, XXXX. The XXXX mortgage interest tax document shows {$140000.00} as the unpaid principal and {$1000.00} as real estate taxes with {$1000.00} as late charges. {$6600.00} was listed as interest applied. 

My bank ledger of all cleared payments to Wells Fargo is attached to this complaint along with my reconciliation record and the multiple mortgage account ledger from Wells Fargo with the last account ledger being received in XX/XX/XXXX. The unpaid principal on this ledger shows {$140000.00}. The ledger still shows payments made that was not applied to my account or applied incorrectly. 
I believe Wells Fargo enacted in deceptive behavior under the XXXX XXXX period because they never mentioned anything about XXXX XXXX to me. I have all the contradicting documentation and account ledgers they had refused to correct since 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