Consumer complaint received 2025-02-08 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: GA

Complaint narrative:
I am submitting this complaint against Wells Fargo Bank, N.A., regarding its handling of my secured credit card account and related financial transactions. I believe the bank has engaged in practices that violate federal financial regulations, lack transparency, and potentially involve deceptive financial reporting. 

1. Failure to Disclose the Monetization of My Signed Credit Agreement On XX/XX/year>, I opened a secured credit card account with Wells Fargo. When I signed the credit agreement, that agreement acted as a financial instrument that created the credit for the account. According to Federal Reserve publications like XXXX XXXX XXXX  and XXXX XXXX XXXX, banks use customer agreements to generate credit, effectively treating them as cash equivalents. 

However, Wells Fargo failed to disclose whether my signed credit agreement was monetized, securitized, or treated as a financial asset on its balance sheet. This lack of transparency may violate : Truth in Lending Act ( TILA, 15 U.S.C. 1601-1667 ) Requires clear disclosure of loan terms, finance charges, and creditor practices. 
Regulation Z ( 12 C.F.R. Part 1026 ) Enforces TILA by ensuring transparency in credit agreements. 
I request that Wells Fargo provide full disclosure and produce the following records : The original promissory note or contract and its corresponding accounting entries under Generally Accepted Accounting Principles ( GAAP ). 
Documentation on whether the agreement was recorded as an asset by the bank. 
Any transfers, assignments, or sales of my agreement as a security or negotiable instrument. 
2. Misrepresentation of My {$300.00} Security Deposit as a Loan to the Bank As part of my secured credit card agreement, I provided a {$300.00} security deposit to Wells Fargo. Under GAAPs matching principle, this deposit should have been offset by a corresponding liability unless the bank used it as an asset. 

Given that banks use deposits to fund operations and issue new credit, my security deposit may have been leveraged as an interest-free loan to the bank, allowing Wells Fargo to profit without disclosure. This may violate : Gramm-Leach-Bliley Act ( GLBA, 15 U.S.C. 6801-6827 ) Requires financial institutions to disclose how they use consumer funds. 
Fair Credit Billing Act ( FCBA, 15 U.S.C. 1666 ) Protects consumers from unfair billing practices, including misrepresented deposits. 
I request that the CFPB investigate : How my security deposit was recorded in Wells Fargos financial reports.

Whether my deposit was pooled with other funds and used to generate additional credit or investments. 
Whether XXXX XXXX handling of secured deposits complies with federal banking laws. 
XXXX. Possible Securitization and Sale of My Debt Without Disclosure Financial institutions frequently securitize consumer debt, bundling agreements into asset-backed securities ( ABS ) and selling them on the financial markets. If Wells Fargo sold my credit agreement without disclosing this transaction, they XXXX have violated : XXXX XXXX XXXX ( XXXX XXXX. XXXX et seq. ) Regulates the trading of financial instruments. 
Regulation Z Requires lenders to disclose if a loan obligation is transferred or securitized. 
I request that Wells Fargo disclose : Whether my account was securitized, pooled, or transferred as a financial asset. 
The CUSIP number or investment product identifier if applicable. 
How this complies with SEC regulations regarding disclosure of securitization. 
XXXX. XXXX for XXXX XXXX XXXX XXXX I am requesting that the CFPB investigate XXXX XXXX financial treatment of my credit agreement and security deposit and require the bank to : Provide full disclosure of whether my agreement was monetized, securitized, or transferred. 
Explain how my security deposit was treated and whether it was used as an asset by the bank. 
Ensure compliance with TILA, XXXX, XXXX, and other financial laws. 

If Wells Fargo engaged in deceptive practices or misrepresented the true nature of my agreement, I ask that the CFPB take appropriate enforcement action. 

Thank you for your time and attention to this matter

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