Consumer complaint received 2026-02-18 00:00:00
Product: Mortgage — VA mortgage
Issue: Struggling to pay mortgage — Trying to communicate with the company to fix an issue related to modification, forbearance, short sale, deed-in-lieu, bankruptcy, or foreclosure
Company: WELLS FARGO & COMPANY
State: LA

Complaint narrative:
CRITICAL ADDITIONAL EVIDENCE : SYSTEMATIC PAYMENT THEFT THROUGH " UNAPPLIED FUNDS '' WELLS FARGO HAS BEEN HOLDING MY PAYMENTS IN " UNAPPLIED '' STATUS SINCE XXXX I have documentary evidence ( which I am uploading ) showing Wells Fargo has systematically held my payments in " UNAPPLIED FUNDS '' status instead of applying them to my loan principal and interest. 
WHAT " UNAPPLIED FUNDS '' MEANS : When I make a payment, Wells Fargo receives the money but does NOT apply it to : Principal balance Interest charges Escrow account Instead, they hold it in a suspense account called " unapplied funds '' where it generates NO benefit to me but allows Wells Fargo to : Continue charging me interest on the full balance Claim I'm delinquent or short-paying Eventually steal the money through fees and charges Report me as late to credit bureaus THIS HAS BEEN HAPPENING SINCE XXXX - OVER 20 YEARS I have been making payments faithfully since XXXX. My payments total approximately {$280000.00} over XXXX years. 
Wells Fargo claims I still owe {$100000.00}. 
WHERE DID MY {$280000.00} GO? 
Wells Fargo 's own documents show large amounts in " UNAPPLIED FUNDS '' that were NEVER properly applied to my account. 
WELLS FARGO 'S XX/XX/XXXX RESPONSE ADMITS THIS FRAUD In their response to CFPB ( which they sent me ), Wells Fargo admits : " You expressed concerns about funds for the XX/XX/XXXX, through XX/XX/XXXX payment were held in an unapplied account. We have provided a breakdown of how those funds were applied to the account. '' Then they show : XX/XX/XXXX : Received {$640.00} placed into unapplied funds XX/XX/XXXX : Received {$640.00} placed into unapplied funds XX/XX/XXXX : Applied {$1100.00} from unapplied to XXXX payment XX/XX/XXXX : Received {$640.00} placed into unapplied funds XX/XX/XXXX : Received {$640.00} placed into unapplied funds XX/XX/XXXX : Applied {$1100.00} from unapplied to XXXX payment XX/XX/XXXX : Received {$640.00} placed into unapplied funds XX/XX/XXXX : Received {$640.00} placed into unapplied funds XX/XX/XXXX : Applied {$1100.00} from unapplied to XXXX payment XX/XX/XXXX : Received {$640.00} placed into unapplied funds XX/XX/XXXX : Received {$640.00} placed into unapplied funds XX/XX/XXXX : Applied {$1100.00} from unapplied to XXXX payment XX/XX/XXXX : Received {$640.00} placed into unapplied funds XX/XX/XXXX : Received {$640.00} placed into unapplied funds XX/XX/XXXX : Applied {$1100.00} from unapplied to XXXX payment THIS IS PAYMENT MANIPULATION FRAUD Questions Wells Fargo refuses to answer : WHY were my payments held in unapplied instead of being applied immediately? 
Where did the " remaining {$100.00} from unapplied funds to principal balance '' go each month? 
How much total money is STILL sitting in unapplied funds? 
Has this been happening for ALL XXXX years, not just XXXX XXXX? 
How much interest have I been charged on money that was sitting in unapplied instead of reducing my principal? 

WELLS FARGO 'S " EXPLANATION '' PROVES THE FRAUD Wells Fargo claims the unapplied funds manipulation was legitimate. But their own explanation shows : They received my payments They held them in suspense They applied them LATER Meanwhile, they continued charging me interest on the FULL balance I was being charged interest on money I HAD ALREADY PAID This is theft through payment manipulation. 
I HAVE COPIES OF UNAPPLIED FUNDS STATEMENTS I am uploading documentary evidence showing " UNAPPLIED FUNDS '' on my account statements going back years. 
This proves : Wells Fargo received my payments Wells Fargo refused to apply them properly Wells Fargo held them in suspense to generate extra interest charges Wells Fargo has been doing this systematically for XXXX years WHY WELLS FARGO DOES THIS By holding payments in " unapplied funds, '' Wells Fargo : Continues charging interest on the full balance ( even though I paid ) Can claim borrower is " delinquent '' or " short-paying '' Can impose late fees and other charges Can report negative information to credit bureaus Eventually steals the money through various fees Extends the loan term by delaying principal reduction THIS IS SYSTEMATIC THEFT AFFECTING MILLIONS OF BORROWERS Wells Fargo has a history of systematic consumer fraud ( fake accounts scandal, etc. ). The " unapplied funds '' scheme is another systematic fraud : Affects millions of mortgage borrowers Generates billions in extra interest charges Allows Wells Fargo to steal payments while claiming " compliance '' Is designed to be confusing so borrowers don't understand they're being robbed ADDITIONAL DAMAGES FROM PAYMENT MANIPULATION Beyond the {$590000.00} in direct damages I calculated, the " unapplied funds '' manipulation adds : Interest charges on money already paid : $ XXXX ( estimated ) Extended loan term from delayed principal application : Additional years added to mortgage Late fees and charges from unapplied payments : $ XXXX ( estimated ) Credit damage from false delinquency reporting : Incalculable Total additional damages from payment manipulation : {$55000.00} - $ XXXX CFPB MUST INVESTIGATE THIS SYSTEMATICALLY I am not the only Wells Fargo mortgage customer with " unapplied funds '' on my account. This is a SYSTEMATIC SCHEME affecting potentially millions of borrowers. 
CFPB should : Investigate Wells Fargo 's " unapplied funds '' practices across ALL mortgages Determine how many borrowers have been affected Calculate total amount stolen through this scheme Order restitution to ALL affected borrowers Impose maximum penalties Refer for criminal prosecution WELLS FARGO 'S RESPONSE DID NOT ADDRESS THIS Wells Fargo 's XX/XX/XXXX response shows the XXXX XXXX unapplied funds manipulation but provides NO explanation for : Why payments were held in unapplied in the first place Whether this happened in other time periods ( IT DID- I have proof ) How much total money is in unapplied funds Why I was charged interest on money already paid Why they're STILL doing this I DEMAND : Complete accounting of ALL unapplied funds from XXXX Explanation of why EVERY payment was or was not applied immediately Calculation of excess interest charged due to payment manipulation Return of all unapplied funds PLUS interest Investigation of systematic unapplied funds scheme Criminal referral for payment theft THIS IS WHY I STILL OWE {$100000.00} AFTER PAYING {$280000.00} The " unapplied funds '' scheme explains where my money went : I paid {$280000.00} Wells Fargo held it in `` unapplied '' Charged me interest on the full balance as if I hadn't paid Eventually applied some of it ( months or years late ) Stole the rest through fees and manipulation Result : After XXXX years of payments, I own almost nothing WELLS FARGO CAN NOT HAVE IT BOTH WAYS Either : They applied my payments properly then I should owe ~ {$48000.00} and own 60 % of my home OR they held payments in unapplied then they committed systematic theft Their own documents prove the second option. 
WELLS FARGO REFUSING TO COMPLY WITH CFPB INVESTIGATION - WITHHOLDING CRITICAL EVIDENCE RE : Original Complaint XXXX I am filing this complaint because Wells Fargo is NOT complying with CFPB 's investigation, is withholding critical evidence, and is attempting to close the investigation through submission of false and incomplete responses. 
WELLS FARGO 'S NON-COMPLIANCE WITH CFPB REGULATIONS Under CFPB regulations, when a consumer files a complaint, the company must : Provide a complete and truthful response Address ALL issues raised by the consumer Provide ALL requested documentation Not provide false or misleading information Wells Fargo has violated ALL of these requirements. 
VIOLATION # XXXX : INCOMPLETE RESPONSE - CRITICAL DOCUMENTS WITHHELD In my original complaint ( XXXX ), I specifically requested : Complete chain of title documentation Explanation of MERS deactivation ( XX/XX/XXXX ) Explanation of XXXX XXXX  cancellation ( XX/XX/XXXX ) All cancelled checks showing payments between loans Complete payment history showing application of funds XX/XX/XXXX XXXX Settlement Statement Documentation explaining how my {$120000.00} purchase became a {$140000.00} loan WHAT WELLS FARGO PROVIDED : Wells Fargo sent approximately XXXX XXXX of documents on XX/XX/XXXX. However, they deliberately EXCLUDED the most critical documents : MISSING : Explanation of XXXX  purge ( XX/XX/XXXX ) - They provided XXXX explanation for why XXXX  XXXX shows loan was " purged '' and marked " Inactive - all other data has been purged '' MISSING : Explanation of XXXX  cancellation ( XX/XX/XXXX ) - They provided XXXX explanation for why XXXX XXXX XXXX stamped the mortgage " CANCELLED BY NOTE on XX/XX/XXXX '' MISSING : Cancelled checks - They provided NO copies of checks showing payments between loans or to the XXXX  MISSING : Complete chain of title - They did not provide recorded assignments showing valid transfer of the mortgage MISSING : Explanation of loan inflation - They did not explain how my {$120000.00} purchase price ( documented in public records ) became a {$140000.00} loan in 7 months This is deliberate withholding of evidence. Wells Fargo is hiding the documents that would prove the fraud I reported. 
VIOLATION # XXXX : FALSE STATEMENTS TO CFPB Wells Fargo 's XX/XX/XXXX response to CFPB contains demonstrably false statements : FALSE CLAIM # XXXX : " Loan has been serviced in compliance with federal & VA servicing requirements '' TRUTH : Their own documents show : XXXX  purged the loan XX/XX/XXXX XXXX cancelled the mortgage XX/XX/XXXX Wells Fargo continued collecting for 15 YEARS after cancellation This is NOT " compliance '' - this is THEFT FALSE CLAIM # XXXX : " We found no evidence of improper conduct, predatory terms, or regulatory violations '' TRUTH : Their own XX/XX/XXXX XXXX ( which they buried in the XXXX pages ) shows : I purchased property for {$120000.00} ( public record ) Loan amount : {$140000.00} Inflation : {$27000.00} ( 22.9 % ) This IS predatory lending and loan inflation fraud FALSE CLAIM # XXXX : " Service transfers and loan number changes are administrative and do not affect loan ownership or borrower obligations '' TRUTH : XXXX  purge is NOT administrative- it means loan was deactivated Parish cancellation is NOT administrative- it means mortgage was terminated Wells Fargo deliberately mischaracterized these critical events Wells Fargo is lying to CFPB to cover up fraud. This violates CFPB regulations and constitutes obstruction of the investigation. 
VIOLATION # XXXX : ATTEMPTING TO CLOSE INVESTIGATION WITH INSUFFICIENT RESPONSE Wells Fargo 's strategy is clear : Send XXXX pages of filler documents to create appearance of cooperation Withhold the XXXX  XXXX evidence Make false statements denying fraud Hope CFPB closes the investigation based on incomplete response This is not good faith compliance with CFPB investigation. This is deliberate obstruction. 
VIOLATION # XXXX : REFUSAL TO ADDRESS CONSUMER 'S SPECIFIC ALLEGATIONS My original complaint raised these specific issues : Issue # XXXX : Loan inflation - {$120000.00} purchase became {$140000.00} loan Wells Fargo 's response : IGNORED - provided no explanation Issue # XXXX : MERS purge and Parish cancellation in XXXX Wells Fargo 's response : IGNORED - claimed these were " administrative '' Issue # XXXX : Continued collection after loan cancellation Wells Fargo 's response : DENIED - falsely claimed " compliance with servicing requirements '' Issue # XXXX : Loan churning - fraudulent " refinances '' in XXXX and XXXX Wells Fargo 's response : MISREPRESENTED - claimed I " voluntarily authorized '' when I was deceived Issue # XXXX : Request for compensation and debt discharge Wells Fargo 's response : REFUSED - stated " we respectfully decline your request for compensation '' Wells Fargo did not address my allegations. They deflected, denied, and lied. 
VIOLATION # XXXX : RETALIATION THROUGH CREDIT REPORTING During the CFPB investigation, Wells Fargo reported LATE PAYMENT on my credit report even though I am in forbearance until XX/XX/XXXX. 
Reporting late payments during forbearance violates : Fair Credit Reporting Act ( 15 USC 1681 ) CFPB regulations Their own forbearance agreement This is retaliation for filing the CFPB complaint. 
VIOLATION # XXXX : VA LOAN REQUIREMENTS VIOLATIONS This is a VA loan, which has additional protections and requirements : VA loans are NON-ASSUMABLE without VA approval Wells Fargo transferred servicing to XXXX XXXX without VA authorization Wells Fargo violated VA servicing standards Defrauding a veteran carries additional penalties THE SMOKING XXXX WELLS FARGO IS TRYING TO HIDE While reviewing the XXXX pages Wells Fargo sent, I found the document they hoped I wouldn't notice : XX/XX/XXXX XXXX XXXX XXXX Loan Number : XXXX Lender : XXXX XXXX XXXX  XXXX XXXX XXXX XXXX {$140000.00} My purchase price ( public record ) : {$120000.00} Inflation : {$27000.00} This single document PROVES the predatory lending fraud I reported. Wells Fargo buried it in XXXX pages, provided no explanation for it, and hoped CFPB would close the case without examining it. 
WHY WELLS FARGO IS WITHHOLDING EVIDENCE The documents Wells Fargo refuses to provide would prove : XXXX  purge records would show the loan was deactivated/cancelled in XX/XX/XXXX Parish cancellation documents would show the mortgage was terminated in XX/XX/XXXX Cancelled checks would show Wells Fargo paid off the loan in XXXX Chain of title would show Wells Fargo never had valid ownership Complete payment history would show systematic misapplication of my payments Wells Fargo can not provide these documents without admitting fraud. So they withhold them and hope CFPB accepts their incomplete response. 
WELLS FARGO 'S PATTERN OF CFPB NON-COMPLIANCE This is not an isolated incident. Wells Fargo has a documented history of : Fake accounts scandal ( deceiving regulators ) Mortgage servicing abuse ( ignoring CFPB orders ) Consumer complaint manipulation ( providing false responses ) Wells Fargo does not cooperate with CFPB in good faith. They obstruct, deceive, and withhold evidence. 
WHAT I'M REQUESTING FROM CFPB REJECT Wells Fargo 's incomplete response as non-compliant ORDER Wells Fargo to provide ALL requested documents within 10 days : Complete MERS transaction history and purge explanation XXXX mortgage cancellation documents and explanation All cancelled checks Complete chain of title with recorded assignments Explanation for {$27000.00} loan inflation Complete payment history showing fund application INVESTIGATE Wells Fargo 's false statements to CFPB Refer false statements for perjury investigation Investigate obstruction of CFPB investigation SANCTION Wells Fargo for non-compliance Impose civil penalties for incomplete response Impose penalties for withholding evidence Impose penalties for false statements to CFPB KEEP INVESTIGATION OPEN until Wells Fargo provides COMPLETE response INVESTIGATE retaliation ( credit reporting during forbearance ) CONSOLIDATE with original complaint XXXX REFER to VA XXXX XXXX XXXX XXXX for XXXX XXXX XXXX XXXX XXXX WELLS FARGO THINKS THEY CAN OVERWHELM CFPB Wells Fargo XXXX strategy : Send XXXX pages of irrelevant documents Withhold the XXXX  XXXX  Make false denials Hope CFPB doesn't have time to investigate thoroughly Hope case gets closed as " company responded '' I am requesting CFPB not let Wells Fargo get away with this. 
Wells Fargo is NOT complying with the investigation. They are withholding critical evidence. They are lying to CFPB. They are obstructing justice. 
CONCLUSION Wells Fargo 's XX/XX/XXXX response is incomplete, false, and non-compliant with CFPB regulations. They are deliberately withholding evidence that would prove the fraud I reported. 
I request CFPB : Reject their insufficient response Order production of ALL requested documents Sanction them for non-compliance Investigate their false statements Keep investigation open Consolidate with complaint XXXX Refer to VA OIG Wells Fargo is trying to close the investigation through deception and document withholding.CONCLUSION ON UNAPPLIED FUNDS The " unapplied funds '' evidence proves Wells Fargo has been systematically stealing my payments for XXXX years through payment manipulation, accounting fraud, and interest charge inflation. 
Combined with : XXXX inflation fraud ( {$27000.00} ) Post-cancellation collection ( {$210000.00} ) XXXX churning ( {$13000.00} ) Payment theft through unapplied funds ( $ XXXX ) Total fraud exceeds $ XXXX in direct damages. 
I am uploading documentary evidence of unapplied funds. 
XXXX XXXX XXXX XX/XX/XXXX 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 explanation