Consumer complaint received 2022-01-11 00:00:00
Product: Debt collection — Other debt
Issue: Communication tactics — Called before 8am or after 9pm
Company: WELLS FARGO & COMPANY
State: CA

Complaint narrative:
XX/XX/XXXX, under the SBAs Paycheck Protection Program under Division A, Title I of the Coronavirus Aid, Relief, and Economic Security Act ( CARES Act ) ; as president of our small business, I applied through Wells Fargo Bank for a Loan with the understanding that if all proceeds are used for forgivable purposes as described over the 8-week period following the date of the loan then the loan would be forgiven according to the program. Our LLC has 2 owners who receive XXXX distributions related to employment activities which constitute Payroll Costs for purposes of PPP loan calculations. 

Earned income of {$190000.00} shared between 2 owners for the fiscal year XX/XX/XXXX - XX/XX/XXXX whereas the average monthly income of {$16000.00} times the program multiplier XXXX = {$40000.00} ; on XX/XX/XXXX funded. Funds were used for the forgivable purposes. 
XX/XX/XXXX I attempted to submit for forgiveness however Wells Fargo claimed they were not yet equipped to process applications. The covered period expired on XX/XX/XXXX with the 1st payment due however since the funds were used according to the forgivable purposes the deferral was extended until which time the bank was ready to accept forgiveness applications. 

Over 15 months following the initial loan Wells Fargo reversed course on our loan. They claim that the money was approved in error but refuse to explain any details. 

Ive reviewed the application with several industry experts, other financial institutions, and an independent accountant. On good faith believe the amount received was eligible according to the rules in effect at the time. An error identified by a bank representative discovered that within one of their systems they had the wrong entity type. I was told that the Wells Fargo review team determined only {$20000.00} was eligible. According to the SBA rules payroll costs are capped at a $ XXXX annually so we can only assume the banks entity error only factored 1 owner by mistake ignoring that each owner received K-1 distributions related to employment activities. The person supposedly following up on this error is on leave due to COVID, and 2 others within the PPP dept who I was working with are no longer with the bank. 

Their executive office promised they would follow this through and get back with specific details but never did and Im told the file is closed. Meanwhile, other bank representatives continue attempting to collect while other departments confirm its still under review with no payments due at this time. 

To add to the inconsistencies, Wells Fargos online forgiveness application became available and on XX/XX/XXXX and accepted and confirmed 100 days later by email they forgave the funds. However, when reiterating this to their representative claiming I still owed the money he accused me of lying! Per the Fair Debt Collection Practices Act ( FDCPA ) I requested that they stop and desist from any further attempt to collect and demanded a detailed explanation as to how theyve determined I owe any of the money or else proof the SBA denied the application. Their representative ignored my demand and continued to harass me a couple weeks later. Last Friday in the early AM another representative called and woke me out of bed in which they put me on hold for over a half an hour to come back online admitting they have yet to review any of the details. 
Back on XX/XX/XXXX I responded through their secure email system requesting to have the SBA review the application. Over 5 months have passed since this request and the SBA confirmed that no application has been submitted by Wells Fargo in relation to this loan. According to SBA guidelines the forgiveness applications should be decisioned within 90 days of a submission, its now been 166 days since I submitted the online application. 

Ironically, during this discovery the SBA confirmed that the 2nd round PPP Loan which was received through Wells Fargo had been fully forgiven. The information submitted for the second round was similar to the first loan which further confirms that the entire {$40000.00} was an eligible amount and should also be forgiven. Ive received over half a dozen case nos on this issue and each time that I call to follow up Im told the case is closed and a new case assigned. I have the names of over 50 representatives from the bank whom Ive spoken spent 100s of hours on the phone and they continue to reroute calls in circles through several departments, with each time resting with someone sincere and willing to help, but when following up Im told that they are either not available or no longer with the bank.

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