Consumer complaint received 2026-06-12 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Problem when making payments — Problem during payment process
Company: WELLS FARGO & COMPANY
State: MI

Complaint narrative:
COMPLAINT SUMMARY : Wells Fargo misallocated my payment in direct violation of their stated payment allocation policy and CARD Act requirements. My excess payment was applied to 0 % balance transfer balances instead of my highest-APR purchase balance, resulting in unnecessary interest charges. WHAT HAPPENED : On XX/XX/year>, I made a payment of {$220.00} to my Wells Fargo credit card account ending in XXXX. This payment significantly exceeded my minimum payment requirement for the billing cycle of XX/XX/year> through XX/XX/year>. As of XX/XX/year>, my account had the following balances : - Balance Transfer # 1 : {$1400.00} at 0 % APR - Balance Transfer # 2 : {$7500.00} at 0 % APR - Purchase Balance : {$61.00} at 23.99 % APR According to Wells Fargo 's own stated payment allocation policy ( provided in their XX/XX/year> response to my inquiry ), payments exceeding the minimum amount must be applied as follows : " When payments exceeding the minimum amount are received, they are applied from the highest to the lowest Annual Percentage Rates ( APRs ). Payments are first applied to balances with higher APRs. '' My purchase balance at 23.99 % APR is significantly higher than my 0 % balance transfer balances. Therefore, under Wells Fargo 's stated policy and CARD Act requirements, my excess payment should have been applied entirely to the 23.99 % purchase balance before any amount was applied to the 0 % balance transfers. THE PROBLEM : Despite this clear policy, Wells Fargo applied my {$220.00} payment to the 0 % balance transfer balances instead of to my highest-APR purchase balance. As a result, my {$61.00} purchase balance at 23.99 % APR remained untouched and continued accruing interest. This misallocation directly caused me to incur unnecessary interest charges on a balance that should have been paid down with my excess payment. VIOLATION OF LAW : This allocation violates : 1. Wells Fargo 's own stated payment allocation policy 2. The Credit Card Accountability Responsibility and Disclosure ( CARD ) Act, which explicitly requires that payments exceeding the minimum be applied to the highest-APR balance first WELLS FARGO 'S INADEQUATE RESPONSE : When I contacted Wells Fargo about this misallocation, they responded with a generic explanation of their payment allocation policy but failed to : - Provide a specific breakdown of how my {$220.00} payment was actually allocated - Address the clear contradiction between their policy and their actions- Reverse the interest charges caused by their misallocation Their response stated " Our records indicate that payments on your account were applied correctly, '' but provided no evidence or explanation for this claim. WHAT I'M REQUESTING : 1. A full reversal of all interest charges incurred on my purchase balance due to this misallocation 2. A detailed explanation of how my XX/XX/year> payment was allocated XXXX. Confirmation that Wells Fargo will comply with its stated payment allocation policy and CARD Act requirements going forward 4. Documentation of corrective measures Wells Fargo will implement to prevent this from happening to other customers

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