Consumer complaint received 2025-08-08 00:00:00
Product: Mortgage — Home equity loan or line of credit (HELOC)
Issue: Trouble during payment process — Payment process
Company: WELLS FARGO & COMPANY
State: GA

Complaint narrative:
I have a HELOC account with Wells Fargo ( WF ). I am submitting this complaint after receiving no resolution from WF when I called to present the issue. Since that call with WF, I received a HELOC billing statement from them with a balance amount that is incorrect and I believe is a ramification of one of the concerns I had when I called WF, XX/XX/XXXX, at phone line XXXX. I am presenting documentation that indicates : WFs HELOC interest calculation algorithm is incorrect and adversely impacts its customers. Their algorithm needs to be validated by the model risk management function of a regulatory body or independent 3rd party to determine the impact of this error on their customers.

WF does not credit the account of HELOC customers that make a payment in a reasonable amount of time and can not provide a specific date in which payments will be credited to an account. They also can not explain why a customers payment hasnt been credited to their account. 

According to my XXXX HELOC Credit Statement ( enclosed ), my principal balance at the end of that day was {$28000.00} and my daily periodic rate is .0311643 %. On XXXX I made a payment of {$10000.00} and {$81.00} of that payment was allocated as an interest payment. On XXXX I made a payment of {$18000.00} and {$190.00} of that payment was allocated as an interest payment. This means that {$28000.00} of my two payments was allocated as a principal payment.

Even after those two payments, my available credit from the HELOC account never changed from the {$1700.00} recorded on my XX/XX/XXXX credit statement. I became worried that the overpayment I made to cover the daily accrued interest would not be applied correctly so I call WF on XX/XX/XXXX to find out why my available credit amount hasnt changed and if there was some type of BSA/AML related fraud alert causing a hold on my account. I was told that there was no fraud alert related hold on my account and that it just takes some time to process payments ( consider this a paraphrase because I did not record our conversation ). I then asked for the date my available credit amount would reflect the principal payments I made, and the Customer Service Rep couldnt give me an answer to that question. 

Imagine my frustration to receive my XX/XX/XXXX HELOC Credit Statement ( enclosed ) to find that my available credit was still {$1700.00} and that I have a total amount due of {$9.00}. Ive included a copy of my daily balance ledger for XX/XX/XXXX showing the same information. 

Using the daily periodic rate and records of when and how my two XXXX payments were allocated provided by WF, Ive included a worksheet showing my HELOC account should have a credit of at least {$72.00} instead of a total balance amount due of {$9.00}.

Please have WF correct the error with my HELOC balance. More importantly, please have a regulatory body look into the interest/principal HELO calculation methodology WF uses on its HELOC customers for adverse impacts.

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