Consumer complaint received 2024-12-02 00:00:00
Product: Mortgage — Home equity loan or line of credit (HELOC)
Issue: Closing on a mortgage — Changes in loan terms during or after closing
Company: WELLS FARGO & COMPANY
State: OR

Complaint narrative:
XX/XX/XXXX Consumer Financial Protection Bureau XXXX XXXX XXXX XXXX  DC XXXX Reference : Loan #. We give permission to CFPB to contact Wells Fargo to resolve this issue. 

CFPB staff, I am contacting you regarding a home improvement loan I took out with Wells Fargo in XX/XX/XXXX. At that time, my spouse and I were looking for a secured loan to complete repairs to our home. During my first phone conversation with Wells Fargo, I explained I already had a fixed rate mortgage with Wells Fargo and wanted a second ( fixed rate ) mortgage to complete a roof replacement and remodel. At the time fixed rate loans were advertised at 3-4 % and I stressed I did not want an adjustable rate and wanted my loan to be a fixed rate due to the historical low rates. 
Background : I met with the loan officer ( XXXX XXXX ) who provided sales documents that outlined different loan options. I went over the options with my spouse, and we decided to use fixed rate advance option to fund the repairs to our home. We returned to the bank on XX/XX/XXXX to review and sign the documents. I had lots of questions as we reviewed the contract language with the loan officer ( XXXX XXXX ). It was explained prior to signing the loan documents we could draw on our loan using fixed rate advances of money, up to three times, and those blocks would be locked in at a fixed APR. We were also given checks and a credit card that could be used but in those purchases it was explained the rate would carry a VPR tied to the prime interest rate. I asked to borrow {$5000.00} initially at a fixed rate to ensure the loan was as described but the loan officer pointed to the language in our loan contract that required fixed rate blocks to be {$10000.00} or more. We signed the contract and then took our first fixed rate block for {$25000.00} at the current fixed rate ( 3.12 % ). When I received my loan statement. I immediately checked it, and it was per the contract Fixed Rate Advance. I called the bank the following month and took another Fixed Rate Advance for {$70000.00}. I again checked the XXXX statement, ( Exhibit A ) and confirmed the 2nd loan to be fixed rate ( 2.99 % ) and the 1st loan was also correct. Over the next few years, we used the checks and credit card sparingly for miscellaneous repairs as needed knowing these would be assessed the VPR tied to the prime rate. 
On XX/XX/XXXX I went to the bank to do a short payoff on an auto loan I had with Wells Fargo. While talking to the banker I was advised I should refinance my Wells Fargo Home Equity loan and lock it in at a fixed rate as the prime interest rate was climbing up. I told them my understanding was the bulk of the loan was already locked in at a fixed rate, but they said the entire loan was an adjustable-rate loan. When I got home, I checked my statements and saw my rate was now listed as a VPR and the auto withdrawal against the loan had been slowly inching up over the last year as rates were moving up. 
I reviewed my signed contract and went back to my local bank on XX/XX/XXXX and met with a loan officer XXXX XXXX who reviewed the contract with me. She then called a corporate level loan officer, and they told us the fixed rate I was offered in XXXX was a promotional rate. XXXX XXXX went through the contract page by page and confirmed the contract we signed in XXXX does not use this term anywhere throughout the contract. Wells Fargo Corporate said they would review and send an explanation of their review of my loan in a letter. 
After not receiving a written explanation, I phoned Wells Fargo Corporate again on XX/XX/XXXX and again on XX/XX/XXXX trying to get this resolved. During my conversation on XX/XX/XXXX Wells Fargo pointed to language on page XX/XX/XXXX and agreed to send me a document they claimed proved I accepted the loan as a VPR loan. I never received any correspondence following that conversation. After calling them again on XX/XX/XXXX I asked for the letter, and they said they could not mail it to me, but they could send it via email. I confirmed my email with them, but they never sent me anything regarding my loan. Ive checked my account and junk mail, my spouses email accounts, and my online account but weve received nothing back from them regarding this loan. 
Complaint : Wells Fargo engaged in unethical behavior in the solicitation and facilitation of this loan as prohibited by TILA. Literature provided ahead of signing, Exhibit C and Exhibit D, indicated the fixed rate loans were Long Term, and the borrower could change back and forth between Fixed Rate and Variable Rate. Lender, ( Wells Fargo ) points to language on page XX/XX/XXXX ( Exhibit E ) where I supposedly requested a 12-month term for the Fixed Rate Advance. Lender ignores page XX/XX/XXXX that stipulates I must select the repayment term for the Fixed Rate Advance at the time I request the Fixed Rate Advance. No request was made for a 12-month term. Paragraph Fully Amortizing Payments ( Exhibit F ), at bottom of page XX/XX/XXXX sets term ranges for Fixed Rate Advances at 5 to 20 years so a 12-month term should never be implemented under this contract. The 2nd loan requested via phone call on XX/XX/XXXX was implemented as a Fixed Rate Loan, however I was never given the opportunity to select the term for that loan either. Lender points to language that I approved a Partially Amortizing payment option for the first loan. No such approval was given to the lender. In fact, page XXXX of a letter issued XX/XX/XXXX by the lender advising us of our conditional approval states the loan as a Line of Credit Advance Payment Type during the Draw Period : Amortizing., ( Exhibit G ). I have requested the lender to submit their arguments, as stated over the phone, in writing for my review. Lender refuses to do so and has ignored my requests for such documentation on XX/XX/XXXX, XX/XX/XXXX, and XX/XX/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