Consumer complaint received 2025-07-07 00:00:00
Product: Checking or savings account — Checking account
Issue: Closing an account — Funds not received from closed account
Company: WELLS FARGO & COMPANY
State: FL

Complaint narrative:
I am filing this complaint due to Wells Fargos unlawful and unethical withholding of {$6900.00} in my personal checking account, including multiple payroll direct deposits. The bank has restricted access to my account without providing due process, a written explanation, or any valid legal justification resulting in financial harm, disruption of my employment income, and violations of federal protections. 
In XX/XX/year>, I was notified by Wells Fargo that my personal checking account would be closed after an internal review. I complied with this decision, and the account was scheduled to close on XX/XX/year>. At that time, the balance was near XXXX. 
However, on XX/XX/XXXX, I logged into my Wells Fargo online banking and found : Multiple unauthorized transactions Several new direct deposits from my employer ( i.e., payroll ) I immediately filed a fraud claim, which Wells Fargo investigated and approved. Following the reversal of the fraudulent charges, the balance became {$6900.00}. 
Since then, the bank has refused to release any of the funds, even though these funds are not under dispute, are not part of any known criminal investigation, and include my legally earned wages. 

Legal Violations and Consumer Harm 1. Unlawful Account Restriction / No Due Process Wells Fargo has failed to comply with its contractual and regulatory obligations to notify me of the reason for the account restriction, the basis for the continued hold, or provide me an opportunity to respond. 
Under the Electronic Fund Transfer Act ( EFTA ), Regulation E, financial institutions are required to promptly investigate and resolve errors involving unauthorized transactions. 
While Wells Fargo approved my fraud claim, they continued to hold my balance without any legal justification. 
The FDIC and OCC require national banks to act in good faith and notify customers in writing when accounts are closed or frozen. 
Violation : Failure to provide timely written notice, failure to provide access to funds after internal investigation, and failure to give the customer an opportunity to respond to alleged third-party disputes ( i.e., a possible wire recall ). 

2. Wrongful Withholding of Payroll Direct Deposits Wells Fargo is currently withholding direct deposits from my employer, which are lawfully earned wages and not subject to dispute. 
Under the Fair Labor Standards Act ( FLSA ), employees must be paid promptly for work performed. 
Once a direct deposit clears into an account, those funds become the legal property of the account holder. 
There is no court order, garnishment, or legal claim on the account that would justify holding these wages. 
Violation : Interference with access to wages may be considered conversion, a civil tort, and may also violate labor law obligations concerning timely wage access.

3. Failure to Abide by Promised Account Closure Timeline The bank originally stated my account would be closed on XX/XX/XXXX. As of XX/XX/XXXX, they have now extended the closure date to XX/XX/XXXX without notice, consent, or written documentation. 
This contradicts prior communications, shows internal inconsistency, and raises serious concerns about Wells Fargos internal controls and account management practices.

Violation : Breach of banking contract and misleading statements concerning account status.

4. Misleading and Harmful Conduct by Wells Fargo Employees During a call on XX/XX/XXXX, a member of the Loss Prevention team explicitly told me that : Were only obligated to release Social Security funds not your other funds. 
This implies that Wells Fargo is making discretionary decisions about which funds I can access even though my payroll funds are legally mine and not in question. This discretionary freezing of non-disputed funds is abusive and harmful. 

The Harm This Has Caused Me Wells Fargos actions have : Prevented me from paying bills and meeting basic financial obligations Caused extreme emotional distress due to the lack of communication and clarity Denied me access to wages that I worked for in good faith Wasted hours of my time with conflicting information and unhelpful support I have done nothing wrong. Ive cooperated fully, filed fraud claims correctly, and have not been notified of any legal or regulatory reasons for my account to remain frozen.

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