Consumer complaint received 2025-11-11 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Other features, terms, or problems — Other problem
Company: WELLS FARGO & COMPANY
State: TX

Complaint narrative:
COVER LETTER XX/XX/XXXX To : Consumer Financial Protection Bureau ( CFPB ) Wells Fargo XXXX XXXX XXXX. XXXX XXXX XXXX XXXX XXXX Washington XXXX DC XXXXXXXX XXXX XXXX XXXX XXXXXXXX Office of the Texas Attorney General XXXX XXXX XXXX XXXX. XXXX XXXX XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX : XXXX Subject : Formal Complaint Against Wells Fargo Bank , N.A . Deceptive and Unlawful Banking Practices Dear Wells Fargo, Texas Attorney General, and CFPB Administrators I am submitting my formal complaint concurrently to the Wells Fargo Bank, N.A., CFPB, and Texas Attorney General Consumer Protection Division. This is in regard to the gross mishandling, concealment of account information, and deceptive accounting practices on my {$300.00} secured credit card account ending in XXXX ( formerly XXXX and XXXX ) that was ultimately charged off for {$9900.00} This case is more than an isolated customer dispute, it reflects systemic negligence, financial manipulation, and questionable banking procedures within Wells Fargos operations, echoing prior misconduct for which the institution has already been sanctioned.

Wells Fargos actions include the following : Inflating a {$300.00} secured credit card limit into a purported {$9900.00} debt showing Im 3,223 % over my credit limit.

Crediting and reversing payments under vague reasoning, and unsupported ACH return codes ; Withholding material account information under the labels of proprietary information and for internal use only Over {$420000.00} provided to Wells Fargo over 8 months in floating payments that were later reversed, after Wells Fargo had benefited from the interest payments. 
Over {$100000.00} in payments missing from final statements provided by Wells Fargo, however I have emails documenting their status.

Final Statement indicating the account balance was zero that was mailed to me, then told a month later they had mailed the internal book-entry ledger by mistake Reporting inaccurate and harmful credit information while refusing to provide the legally required validation of debt.

These bank actions and inactions constitute violations of following laws in place to protect customers : Regulation E, The Fair Credit Reporting Act ( FCRA ), The Electronic Fund Transfer Act ( EFTA ), and The Texas Deceptive Trade Practices Act ( DTPA ) Demand for Relief : I respectfully request the assistance of your offices in compelling Wells Fargo to provide restitution, and correction of the public record. Wells Fargos actions have caused quantifiable financial and reputational damage exceeding well over {$50000.00}. However, in the interest of resolution and closure, Im willing to settle the matter for {$15000.00} with : Written acknowledgment that the account was paid in full and never delinquent.

1. Deletion of all related negative credit reporting across all CRAs ( XXXX XXXX XXXX ). 
XXXX. Confirmation that no balance or charge-off remains due or collectible. 

Sincerely, XXXX XXXX XXXX XXXX XXXX Wells Fargo Bank , N.A . Secured Visa Account Ending in XXXX ( formerly XXXX, XXXX ) Grounds : Unjust Enrichment, Deceptive Practices, Failure to Validate Debt, and Concealment of Material Information 1. Summary of Complaint I am filing this complaint against Wells Fargo Bank , N.A . for egregious mishandling of a secured credit account, resulting in a fraudulent charge-off of $ XXXXan amount that exceeds the original {$300.00} limit by 3,222 %. Resulting in several lost credit opportunities that have impacted the course of my life. 
The alleged balance arose from a series of bank-to-bank payments that were initially credited, but then later reversed, with Wells Fargo providing only generic explanations such as Restricted Account ( R29 ), No Account ( R03 ), and Limited Participation ( R34 ).

Despite my repeated written requests, Wells Fargo has : Failed to provide documentation or legal justification for these reversals; Refused to disclose its internal accounting records ; and Continued to report a false and inflated debt to credit bureaus.

These actions have caused severe financial harm and reputational damage over a seven-year period.

2. Detailed Allegations a ) Violation of Regulation E and Failure to Provide Transaction Validation Wells Fargo has consistently refused to disclose the specific reasons behind payment reversals, citing only ambiguous terms like not authorized and hiding behind its proprietary information. Under 12 CFR 1005.11 ( Regulation E ), consumers are entitled to a detailed explanation of any disputed electronic funds transfer. My account statements only show Adjustment Payments. I was locked out of my emails due to 2 Factor Authentication phone verification with a phone I didnt have. Earlier this year I was finally able to get access to my emails where some of the transaction codes were available and the information I discovered is startling. Such concealment obstructs dispute resolution and violates federal disclosure obligations. I was told they could not provide the information or codes as it was proprietary.

With the emails I was able to see these reversal codes R01 Insufficient Funds R03 No Account Number Unable to locate account R04- Invalid Ac
count Number R13 Invalid ACH Routing Number R29 Corporate Customer Advises Not Authorized Account R34 - Limited participation DFI ( receiving bank not authorized to process this entry ) These codes indicate Wells Fargo accepted and credited payments drawn on accounts with no available funds, no account number or invalid account number, invalid ACH Routing Number, Corporate Authorization , and Limited Participation whereupon they issued immediate credit despite no verified settlement.

These transactions never represented legitimate funds. Yet Wells Fargo made them available for withdrawal, contrary to Regulation CC, which makes the bank not the depositor responsible for settlement risk. Wells Fargos subsequent issuance of cashed checks and creation of a charge-off balance represents an attempt to have me reimburse the bank for its own operational losses.

Illegitimate Nature of the Alleged Debt : The {$9900.00} balance is not the result of any purchase, loan, or cash advance. It is a fabricated liability that exists solely because Wells Fargo : Credited my account with unverified, invalid ACH deposits, Issued real money against those credits before settlement ; and Retroactively reversed the credits when the originating banks rejected them. By doing so, Wells Fargo effectively cashed its own bad checks and now seeks repayment from me for its error.

Unjust Enrichment and Misrepresentation While I suffered damaged credit, stress, and reputational harm, Wells Fargo benefited by holding over {$420000.00} in cumulative float in my account history interest-free funds generated by these phantom transactions. This constitutes unjust enrichment and deceptive practice under both federal banking law and the Texas Deceptive Trade Practices Act ( Tex. Bus. & Com. Code 17.41 et seq. ).

Financial Gain Why would a bank allow an account to remain open that averages approximately 10 transactions reversals per month over an 9-month span? The answer is simple they are receiving an financial gain by allowing this behavior to continue. Wells Fargo appears to have derived material financial benefit from the payment-and-reversal cycle through : Interchange fees on purchases made before reversals.

Interest or float income on temporarily credited balances.

Reduced liability exposure if merchant settlement refunds were obtained before consumer reversals.

This pattern suggests systemic unjust enrichment. Wells Fargos incentive to keep the account open was financial enrichment from transactions that they have disclaimed, all while holding the consumer responsible for inflated balances.

Delayed Actions & Algorithm Training I was told the extended period of 8 months in which these transactions were allowed until suddenly reversing reflects operational delays, batch processing issues, delayed algorithm detection of over-crediting, and possibly an ongoing fraud investigations. Regardless, this allowed Wells Fargo to potentially profit from my transactions for months while leaving me uninformed about the nature of the sudden reversals.

Concealment of Credit Reports & Poor Investigations The positive credit reporting for this account was concealed from all reporting agencies except for the reporting of a debt in the amount of {$9900.00} that began in XXXX of XXXX. All previous credit reports said On Time, Never Late, from XXXX through XX/XX/XXXX. Once the reversals were initiated All of my credit reports began showing NO DATA for XXXX XX/XX/XXXX with Delinquent payments beginning in XX/XX/XXXX. I explained this to All the credit bureaus, The CFPB, and The OCC how this was incorrect, and I still received letters indicating that the creditor says the statements are accurate. Yet nobody questioned the accuracy of how a {$300.00} Credit Limit ballooned to rack up {$9900.00} in debt. 
Truth in Lending Act Violations Internal Account Regulation Z Concealment also occurred via Internal Account When I asked about the mail I received showing account balance of {$0.00} in XXXX of XXXX when my account was closed. When I asked why Wells Fargo was demanding payment when the statement they sent showed a {$0.00} balance I was told that it was actually a Internal Accounting Record separate from my account statements. In official correspondence, Wells Fargo admitted maintaining an internal account in my name, that I was unaware of nor was I informed about how it was being used, or how many accounts were actually in my name. This is clearly a violation in Truth in Lending Act of Regulation Z.

This is a grave concern that Wells Fargo Bank : Maintains dual sets or more of bank account records ( they admitted and provided documentation to me by accident ) Withholds full ledger data from consumers. 
Maintains internal suspense or Holding accounts under customers identifiers. 
Such concealment deprives consumers of their right to a transparent accounting of all transactions, contrary to both EFTA and DTPA 17.46 ( b ), which prohibit deceptive omissions of material facts. 
Fabrication or Inflation of Debt Without Purchase Validation XX/XX/XXXX card ending in XXXX was the last time an item was purchased by me on this account, although 3 credit card numbers were issued. Wells Fargo essentially issued me a new card that was not able to be used anywhere and would decline with money showing or a credit balance in the account. To this day Wells Fargo has failed to produce a verified purchase that was for a legitimate transaction in which they claim I owe from reversed or invalidated accounts. Without a complete breakdown, there is no evidentiary basis for the purported {$9900.00} balance. The debt comes from Wells Fargo issuing me cashiers checks during months in which I had a negative credit balance. Essentially their own system was informing them of the negative credit balance and sending me checks. Even though Wells Fargo was aware of Non Sufficient Funds in accounts, non existent accounts, and accounts lacking proper authorization. So how can I owe a balance for cashiers checks Wells Fargo issued to me that were not the result of credit being utilized?

This failure violates the Fair Debt Collection Practices Act ( FDCPA 809 ), which mandates clear validation of debt upon dispute. Instead they insist the debt is owed due to credit balance check payments that were issued to me for overpayments that were later reversed.

Patterns of Misconduct Nationwide Wells Fargo has an extensive history of similar misconduct including the XXXX findings of unauthorized account creation, improper fees, and false reporting all of which led to enforcement actions by the CFPB and OCC. The behavior in my case reflects this same culture of concealment, deceptive accounting, and disregard for consumer protections. However, I did not receive any settlements or redress from experience with Wells Fargo.

3. Relief Requested- I respectfully request that the CFPB and Texas Attorney General require Wells Fargo to : Provide a Full Accounting o Itemized list of all transactions, including payment credits, reversals, fees, and their official ACH return reason codes. 
Disclose All Internal Account Records o Including internal use only ledgers, suspense accounts, and journal entries connected to my accounts ending in XXXX, XXXX, and XXXX. 
Account for Any Financial Benefit o Detailed disclosure of profits, float, or fee income derived from credited or reversed transactions.

Cease Collections and Correct Credit Reporting o Immediately suspend all collection activity and delete inaccurate credit entries pending full resolution.

Provide Compensation and Restitution o Direct compensation for documented financial and reputational harm consistent with statutory remedies under the Texas DTPA, EFTA, and FCRA, totaling not less than {$24000.00} or such amount as the CFPB deems just.

4. Conclusion This matter is not simply a billing dispute it is a clear instance of systemic misconduct and concealment that undermines public confidence in the U.S. banking system.

I urge both the CFPB and the Texas Attorney General to investigate this matter thoroughly, and compel Wells Fargo to produce all relevant internal data, and ensure that restitution is made in full. 
Respectfully submitted, XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX XXXX XXXXXXXX Email : XXXX Phone : ( XXXX ) XXXX Date : XX/XX/XXXXXXXX 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 non-monetary relief