Consumer complaint received 2024-12-05 00:00:00
Product: Checking or savings account — Checking account
Issue: Problem caused by your funds being low — Non-sufficient funds and associated fees
Company: WELLS FARGO & COMPANY
State: CO

Complaint narrative:
Wells Fargo has, in my opinion, engaged in deceptive and fraudulent banking practices. 

The following complaint involves my personal banking account. All funds are internal to Wells Fargo and no external banking funds were used or transferred. 

On XXXX, I purchased a CD for {$50000.00}. Using the Wells Fargo website, I transferred funds from my checking account to fund the CD purchase. At the time, my checking account had a balance of approx. {$85000.00} and the CD was purchased in the amount of {$50000.00}, leaving a balance of approx. $ XXXXSee Exhibit 4. 

On Monday, XXXX, I was informed by Wells Fargo that my checking account balance was a negative $ XXXX. A {$100000.00} change. See exhibit 1 Without my knowledge or any notification, Wells Fargo apparently placed a hold or sequestered an amount of my checking account funds equal to that of the CD purchase, in my case, {$100000.00} ( {$50000.00} + {$50.00}, XXXX ). An explanation has never been given as to why any hold or sequestration of funds, from a fully funded internal account was warranted. 

When purchasing this CD, there were no terms or conditions indicating that this purchase would incur a penalty equal to the amount of the CD purchase that would lead to placing the checking account into deficit. 

Due to this Wells Fargo deception ( in my opinion ) of not disclosing that my account would be debited twice the XXXX purchase price, I had gone from an account balance on XXXX of {$85000.00} to a deficit of $ XXXX on Monday morning, XXXX. See exhibit 2. Includes a small unrelated deposit of {$1500.00}. 

In my opinion, this deceptive, unethical, and I believe illegal practice has caused me an incredible amount of stress and anxiety.I was panicked and stressed when I became aware of the situation. 

If this is a common practice, it would allow Wells Fargo to potentially collect overdraft fees as checks clear while an account is unknowingly forced into overdraft. 

When I saw that {$50000.00} additional dollars had been taken from my checking account, with no record or explanation of it occurring, I panicked. I had to quickly change as many pending payments to ensure they did not hit my checking account for fear they would bounce and I would incur numerous overdraft fees. There could also have been insufficient fund charges from the payees. See exhibit 1 stating overdraft fee charge would occur .I also had a paper check in the mail sent to a charity that I knew would be clearing soon. 

My first thought when I saw there was no record of the additional {$50000.00} deduction was that it could have been theft. Everything, I thought, was recorded in a bank. But not this. Take a look at exhibit 4. 

Following several conversations with Wells Fargo staff ( 4 conversations in total ), it became apparent that the funds would not be returned in a timely fashion. I therefore felt compelled to take urgent, embarrassing and humiliating action to ask XXXX to deposit {$20000.00} into my account to make myself whole again and start paying my bills. Certainly a transfer of funds between two Wells Fargo accounts, with both parties present, would be available immediately. 

On Tuesday, XX/XX/XXXX, I drove XXXX, also a Wells Fargo customer, and myself down to the nearest Wells Fargo branch to make the deposit ( A significant distance since we live in the foothills of Colorado ). Due to the size of the deposit, two tellers had to be there, I guess one to conduct the transaction and the other for approval. As XXXX started to write the check, she innocently turned to me and asked if that was enough and did I need any more money! That was quite an embarrassing moment, given the fact that both tellers now knew that I was overdrawn by almost {$13000.00}. 

When the transaction was completed, the teller politely told me that {$2500.00} of that {$20000.00} deposit would be available to me immediately! That was quite a relief knowing that that I was now only {$10000.00} in the red as I walked out of the bank. See exhibit 6. I still had no money AND I was humiliated. 

There is also no indication of where the sequestered funds actually went. If you look at the screenshot of my bank statement, it shows my balance of XXXX on Friday a deduction of {$50000.00} for the CD that I purchased, a small deposit of {$1500.00} and then at the top it shows a balance of minus {$12000.00} with absolutely no indication of where the other {$50000.00} went! See exhibit 4. 

As of Wednesday XXXX, XX/XX/year>, the sequestered {$50000.00} has still not been returned to my account. The positive balance shown in exhibit 3 is the result of the {$20000.00} being generously transferred to me to help pay my bills by an outside party. 

Those reading the above may just feel I am just venting or rambling ; but I can assure you, I am not. I have always been very proud and diligent concerning my financial affairs. Anyone from Wells Fargo can probably verify that my checking account balance has never fallen below {$35000.00} in the last 5 to ten years - maybe longer. 

I lost two nights of sleep worrying about the above events. 

Some of my automated bills were scheduled to be sent out on Monday and I had to cancel them, a couple the next day that also needed to be cancelled. 

When my money was not returned by Wednesday morning, I had to mentally prepare myself that this had the potential to drag on for quite a while. 

First and foremost, I had determine which bills I had that required prompt payment. Next, I needed to find some quick liquid cash - outside accounts would take a week or more to get to me -I had to ask XXXX for a {$20000.00} loan. 

Finally, I had to mentally prepare myself that the {$50000.00} could just be gone. There was no record of the funds being withdrawn or held for some unknown reason anywhere in my account documentation that I could find- it had just vanished. 

Update : late- morning on Wednesday, XXXX, the sequestered {$50000.00} was returned to my checking account.See exhibit 5.

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