Consumer complaint received 2025-01-24 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: WELLS FARGO & COMPANY
State: VA

Complaint narrative:
I have a mortgage with Wells Fargo for a property located in Florida which I purchased in that XX/XX/XXXX. 
My monthly payment includes principal and Interest along with my property taxes. 
I pay for my insurance. 

In XX/XX/XXXX I changed insurance company by canceling one policy and going with XXXX. 

On XX/XX/XXXX I received an email from Wells Fargo stating that if I did not provide proof of insurance they would obtain Lender Placed Insurance which might impact my escrow and mortgage payment. 

On XX/XX/XXXX I sent proof of insurance with XXXX for XX/XX/XXXX until XX/XX/XXXX. XXXX has Wells Fargo listed as my Mortgage Company along with their address and my loan number because they provided Wells Fargo with Proof of Insurance back in XX/XX/XXXX. 

I thought the issue was resolved until I received a notice saying that Wells Fargo had purchased Lender Placed Insurance Policy for me for more than {$40000.00} with XXXX XXXX XXXX in XX/XX/XXXX. 

The insurance they purchased was approximately {$40000.00}. 

When I contacted Wells Fargo Insurance Department the individual stated that I still owed Well Fargo the money because Wells Fargo had purchased a Lender Based Policy in XX/XX/XXXX for Insurance covering the period of XX/XX/XXXX until XX/XX/XXXX because I did not have insurance. 

I was dumbfounded for the following reasons : How is it possible to purchased insurance in XXXX for a period covering XX/XX/XXXX - XX/XX/XXXX ; XXXXhat Insurance Company is allowed to sell back-dated insurance ; How was Wells Fargo able to purchase back-dated insurance ; Wells Fargo never notified me in XXXX that I allegedly didn't have insurance in XXXX ; Hypothetically... If I didn't have insurance in XXXX ( which I did and have provided proof ), Wells Fargo never suffered a loss of any sort. 
If the purpose of insurance is to cover a loss, the policy that they purchased in XXXX for XX/XX/XXXX - XX/XX/XXXX provides absolutely no value or coverage to me or in XXXX ; Her only response to the above questions is that I signed a document stating that if I didn't maintain insurance that XXXX would provide XXXX based insurance. 

I asked for the document that I signed which says that Wells Fargo can purchase Lender Based insurance for anytime period in the past ... XXXX XXXX until XXXX if I didn't have it. 

Her comment was that no such document existed Leader Based Insurance is to cover a loss and there was no loss in XXXX and I had Insurance. 

When I asked why now ... .She stated that allegedly, in XX/XX/XXXX Wells Fargo received a notification saying that my Insurance had lapsed and that they notified me. 

The notification said absolutely nothing about the coverage period being XX/XX/XXXX - XX/XX/XXXX. 

When I received their email, notification, it prompted me to contact XXXX and confirm that my insurance had NOT lasped and had been active since XX/XX/XXXX when I cancelled my previous policy and obtained insurance with XXXX, my current carrier. 

XXXX assusred me that I had insurance from XX/XX/XXXX - XX/XX/XXXX. 

My Insurance has never LASPED, a term used by the Wells Fargo Representative, rather I made the decision to change Insurance Companies and XXXX provided Wells Fargo with proof of insurance dating back to XXXX. 

When it was clear that that the Insurance Department was insistent that I still owed the money unless I could show that I had insurance, I asked that my complaint be escalated. 
I ended the call stating that I wanted my complaint titled " Deceptive Practice and Possible Fraud '' Today XX/XX/XXXX, I received a call from XXXX XXXX, XXXX XXXX XXXX XXXX who said she was calling because I was saying that I had insurance and Wells Fargo had been notified that I did not. 

She said if I could provide poof of insurance the complaint would be resolved and they would redeposit the money in my escrow but it would take time. While we were on the call, I emailed XXXX XXXX proof of insurance dating back to XXXX and asked now what. She told me she had until XX/XX/XXXX to complete her investigation. 

I told XXXX XXXX that my mortgage is due XXXX and I would NOT be making and additional payment based on their deceptive practice. 

XXXX XXXX held the party line but said there would be an investigation into why I didn't received a notice in XX/XX/XXXX when my insurance lapsed but that Lender Based Policy agreement I signed made it ok for Wells to obtain back dated insurance from an Insurance Agency. 

I believe this is a deceptive practice and would have been the first attempt to foreclosure on my Property if I had not had insurance and I believe it maybe a Practice that Wells Fargo is engaging in with other borrowers. My Mortgage would have increased by almost {$2000.00} and Wells Fargo has a documented history of engaging in deceptive practices. 

I also believe that their action may also constitute Fraud.

Also, I plan to call the Insurance Company, XXXX XXXX XXXX to Understand how they issued a policy in XXXX for a period covering XX/XX/XXXX - XX/XX/XXXX. 

XXXX XXXX XXXX XXXX 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 non-monetary relief