Consumer complaint received 2024-06-27 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Payment process
Company: WELLS FARGO & COMPANY
State: FL

Complaint narrative:
XXXX. On or around XXXX of XXXX, a new mortgage payment amount took effect after an escrow analysis. 

XXXX. Payments throughout the history of the mortgage have always been made on or around the XXXX of every month. Not a single month was missed. 

XXXX. On XX/XX/XXXX a payment was made for that month, with a {$97.00} shortfall due to the incorrect amount used from the escrow letter received. The description of the transaction was classified as APPLIED FUNDS, different from the regular description of PAYMENT in the account summery section the bank provides on their website. 

XXXX. On XX/XX/XXXX, another mortgage payment was made with the incorrect amount. No notice was received from the bank the amount submitted the prior month was incorrect. 

XXXX. On XX/XX/XXXX an email was received notifying me the account was past due, and I owed another mortgage payment {$3300.00}, plus a late fee of {$110.00}. 

XXXX. A representative from the bank was contacted and notified me of my {$97.00} shortfall on my mortgage payment. When it was brought to my attention, payment of the {$97.00} dollar shortfall was promptly made on XX/XX/XXXX and accepted by the bank. Leading me to believe the account payment was properly adjusted to reflect the current payment for the month, as it was an accounting error on my part of the shortfall. 

XXXX. The next XXXX months ( XX/XX/XXXX and XX/XX/XXXX ), the new payments were made, reflecting the correct amount. No notices of past due payment activity was received. 

XXXX. On XX/XX/XXXX, an email was received with notification the mortgage payment was due on XX/XX/XXXX. 

XXXX. When the latest statement was downloaded from their website, I owed XXXX mortgage payments with {$330.00} in late fees. 

XXXX. Without my knowledge, the bank applied the shortfall payment made in XXXX to principal, and I have been unjustifiably charged {$110.00} every month, because of an incorrect interpretation of the amount owed. 

XXXX. The above stemmed from a {$97.00} dollar shortfall. It was my understanding when I spoke to the representative, and since such amount was accepted, the account would have been adjusted accordingly back in XXXX. 

XXXX. This month Ive had to pay XXXX mortgage payments with late fees totaling {$7000.00}! All because the bank, without my consent or knowledge, applied a regular payment with the incorrect amount to principal. 

XXXX. Multiple conversations with representatives from the bank refuse to make the adjustment on the account. I have not missed a mortgage payment. It was simply an incorrect amount sent that was promptly corrected as soon as I was made aware. 

The bank is raising substantial additional revenues in fees and mortgage payments from the consumer when making incorrect payments by not adequately or promptly disclosing to the customer the status of the account, or how are incorrect payments applied.

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