Consumer complaint received 2025-07-29 00:00:00
Product: Checking or savings account — Checking account
Issue: Managing an account — Deposits and withdrawals
Company: WELLS FARGO & COMPANY
State: TN

Complaint narrative:
XX/XX/2025 Consumer Financial Protection Bureau XXXX. XXXX XXXX Washington XXXX DC XXXX Subject : Formal Complaint Unlawful Funds Hold and Notification Violations by Wells Fargo Bank under Regulation CC and the Expedited Funds Availability Act To Whom It May Concern : I am submitting this formal complaint against Wells Fargo Bank , N.A . for its failure to comply with the Expedited Funds Availability Act ( EFAA ) and its implementing regulation, Regulation CC ( 12 CFR Part 229 ), regarding a recent deposit made into my account. 

On XX/XX/2025, I deposited a check in the amount of {$15000.00}, drawn on a local bank and issued by a reputable law firm. Upon deposit, Wells Fargo informed me of a staggered hold until XX/XX/2025. The next day, I was informed verbally that the bank was unable to collect the funds due to the law firm 's bank suspected fraud, although no written notice or explanation was provided in accordance with Regulation CC requirements. 

I immediately contacted the issuer of the check and confirmed that the item had cleared the law firms bank account without issue. Despite this verification, Wells Fargo failed to release the funds and instead extended the hold without explanation. On XX/XX/XXXX, I received a vague and conclusory notification from the bank indicating that the deposit would be held until XXXX XXXX XXXX, citing only Deposit Hold as the reason, with no regulatory basis or factual support.

Violation Summary 1. Unjustified Hold on Funds Wells Fargo has violated 12 CFR 229.13 by applying an extended hold without relying on a valid exception. The circumstances of the deposit do not meet the regulatory requirements for any hold exception, including new accounts, large deposits, repeated overdrafts, or reasonable cause to doubt collectibility. The check in question was legitimate and confirmed as cleared by the issuing bank.

2. Failure to Provide Proper Notice Under 12 CFR 229.16 ( c ) ( 2 ), financial institutions are required to provide timely and accurate written notice when funds availability is delayed. This includes the specific reason for the delay, the category of exception being invoked ( if any ), and the date the funds will be made available. Wells Fargo failed to meet these obligations by : Initially providing no written notice ; Later issuing a vague notification with no legal basis cited ; Failing to support its fraud concerns with any documentation.

3. Failure to Act in Good Faith The shifting justifications, inconsistent communication, and lack of transparency constitute a breach of the good faith and fair dealing principles embedded in federal consumer financial law. This undermines the trust consumers place in regulated
depository institutions and defeats the intent of the EFAA to ensure prompt and reliable access to deposited funds.

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