Consumer complaint received 2025-06-11 00:00:00
Product: Checking or savings account — Other banking product or service
Issue: Managing an account — Banking errors
Company: WELLS FARGO & COMPANY
State: FL

Complaint narrative:
On XX/XX/year>, I initiated an ACH payment for {$1900.00} from my XXXX XXXX XXXX  account to what I believed was a legitimate business account belonging to XXXX XXXX XXXX. This payment was intended to be sent to XXXX XXXX XXXX XXXX XXXX', in order to expidite a refund that we needed to process to refund to our client. The receiving account was held at Wells Fargo Bank. 

Shortly after the transfer, I contacted XXXX on XX/XX/XXXX to confirm receipt. XXXX  informed me that the account I sent funds to does not belong to them, and they never received the payment. It became clear that the recipient account was fraudulently misrepresented, and I had been misled into sending funds to a Wells Fargo account that was not affiliated with XXXX  in any way. 

I filed a formal dispute with XXXX XXXX XXXX, around XX/XX/year>, requesting a return of funds due to fraud/misrepresentation. However, XXXX XXXX XXXXXXXX informed me that Wells Fargo has refused to cooperate with the request for a return of the ACH transfer. We attempted to contact Wells Faro multiple times and provided them with a trace number and any other additional information we have available. They are withholding recipient identity, have failed to act on the fraudulent activity, and are not assisting in any recovery efforts. 

Additionally, Wells Fargo failed to ensure that the name of the intended recipient matched the account number, which is a basic due diligence step expected of financial institutions to prevent fraud. They allowed an account to be opened and used under a misrepresented business name - or failed to monitor it for such misuse. 

Wells Fargos refusal to assist or act appears to violate key regulatory expectations, including : The Customer Due Diligence ( CDD ) Rule ( 31 CFR 1010.230 ) - Banks must verify the identities and ownership of business accounts to prevent fraud and misuse.

The Bank Secrecy Act ( BSA ) - Requires institutions to detect and respond to suspicious activity such as impersonating a well-known company to receive ACH transfers. 

UDAAP ( 12 U.S.C. 5531 ) - Their inaction may constitute an unfair or abusive practice, given that it resulted in consumer financial harm and denial of basic support. 

NACHA Operating Rules ( ACH regulations ) - While ACH systems do not require recipient name matching by default, NACHA rules still require banks to have fraud controls and take action in cases of misrepresentation or unauthorized activity. 

Despite repeated requests from me and my bank, Wells Fargo has not provided : - Confirmation of whether the funds were received, - Any identity details for the account holder, - Any support in recovering the funds, or- Any explanation of what internal investigation, if any, has been conducted. 

I am requesting the CFPB to compel Wells Fargo to : - Cooperate with XXXX XXXX XXXXXXXX in resolving this fraudulent ACH transaction, - Provide details of the recipient and confirm whether the funds can be returned, - Explain why the account was permitted to operate under misleading or impersonated credentials, - Address its failure to uphold basic fraud prevention responsibilities under federal law.

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