Consumer complaint received 2024-10-03 00:00:00
Product: Checking or savings account — Checking account
Issue: Closing an account — Company closed your account
Company: WELLS FARGO & COMPANY
State: PA

Complaint narrative:
I am filing a formal complaint against Wells Fargo for the unfair termination of my account and an unfounded accusation of check alteration/fraud. After a car accident in XXXX, XXXX I received an insurance check from XXXX XXXX XXXX around XX/XX/XXXX. The check was mailed to my friends house, as I was temporarily staying with him after the accident. By the time the check arrived, I had already begun traveling home. I instructed my friend to send me photographs of both the front and back of the check. Since I was geographically distant from a Wells Fargo branch, I used these images to remotely endorse and attempt to deposit the check digitally through Wells Fargos mobile deposit service using paint software on my tablet. I did not alter the check itself in any way ; I simply endorsed it digitally to facilitate the deposit. The account had been opened in XX/XX/XXXX. 

After several failed attempts to deposit the check, my account was locked, and Wells Fargo requested that I physically present the check at a branch. However, I was more than XXXX miles away from the nearest branch, and the check was in Oklahoma. I explained to Wells Fargo that the check was legitimate, issued by XXXX XXXX XXXX, and requested that they contact either the insurance company or the issuing bank XXXX XXXX XXXX XXXX XXXX to verify its authenticity. Despite my request, Wells Fargo refused to verify the check with either party. They also informed me that the account was " too new '' to allow such a transaction and terminated my banking relationship, citing check alteration/fraud, without providing clear justification or conducting a proper investigation. 

While Wells Fargo did notify me of the account closure, they never provided a clear reason for their decision at the time. I was only able to confirm that they had accused me of check fraud after filing a complaint with the XXXX XXXX XXXX XXXX XXXX XXXX. Until then, Wells Fargo refused to disclose the specific nature of the alleged fraud when I asked. 

On XX/XX/XXXX, Wells Fargo responded to my XXXX complaint with the following statement : " We apologize for any service concerns you may have experienced when you attempted to resolve this matter. While it is never pleasant to learn we have failed to meet a customers expectation, we appreciate your bringing this situation to our attention. Your feedback regarding your experience is important to us because it allows us the opportunity to improve the service we provide. Wells Fargo performs ongoing reviews of its account relationships in connection with the Banks responsibilities to manage risks in its banking operations. We recently reviewed your account relationship and, as a result of this review, we closed the above-referenced account because of one or more checks deposited to or cashed against your account suspected to be altered. '' On XX/XX/XXXXXXXX XXXX XXXX I spoke with a Wells Fargo representative who stated that it was not possible to deposit a check using a photograph, and that no bank would accept such a deposit. However, I successfully deposited the same check into my XXXX XXXX XXXX XXXX account via mobile deposit without any issues. Wells Fargo also stated that it was my responsibility to prove that the check was not fraudulent or altered. Despite my efforts to provide legitimacy through the issuing insurance company or the issuing bank, they refused to investigate the check further. 

Additionally, Wells Fargos website states : " Checks and other items that are NOT eligible for the XXXX XXXX XXXX include : international checks, U.S. savings bonds, U.S. postal money orders, remotely created checks ( whether in paper form or electronically created ), electronically created items ( items created electronically and not derived from a paper check ), convenience checks ( checks drawn against a line of credit ), non-American Express travelers checks, cash, checks that are illegible or contain XXXX data that is not machine-readable, and duplicate checks. '' " You are prohibited from duplicate scanning, negotiating, and/or depositing the same original check, or substitute of that original check, using our Mobile Deposit Service or by any other means. If you or anyone else presents a check or substitute check for deposit more than once, in violation of this Agreement, you agree to indemnify, defend, and hold Wells Fargo harmless from and against all liability and damages that may result from any claims, suits, or demands from third parties with respect to such check or substitute check. '' " You must also ensure that the checks have not been altered, and that the photos sent via the Mobile Deposit Service are an accurate depiction of the front and back of the original check to be deposited. '' " You are responsible for any numerical errors on deposit data entry. '' Wells Fargo failed to follow through with verifying the check despite my repeated requests to do so, even though I provided them with the name of the insurance company or bank that the check was legitimate. I also right now submitted supporting documentation, including the front and back images of the check, my bank statement, a police report regarding the car accident, and email correspondence from the insurance company confirming the checks validity. I was transparent with my infomation and they refused to do a proper investigation Wells Fargo unilaterally decided to close my account without conducting a proper investigation. 

Right to Account Closure Explanation : Although Wells Fargo did provide notice of the account closure, they did not give a clear explanation or allow me to dispute the accusations. I only learned that I was accused of check fraud after I filed a complaint with the Better Business Bureau. While banks can close accounts at their discretion, especially in cases of suspected fraud, they are generally required to provide notice and explain the reason, giving the consumer an opportunity to dispute the decision. Wells Fargo 's failure to provide a clear explanation at the time of the closure and their refusal to elaborate on the fraud accusation may violate due process within banking protocols. 

Potential Violations : Uniform Commercial Code ( UCC ) 3-406 & 3-409 : Wells Fargo may have violated UCC provisions by accusing me of check alteration without sufficient evidence of fraudulent intent. Under UCC 3-409, Wells Fargo is required to act in good faith when processing negotiable instruments. Their refusal to verify the checks authenticity with XXXX XXXX XXXX or the issuing bank XXXX XXXX XXXX XXXX XXXX despite my request, may represent a breach of this duty. Citing the account as " too new '' does not absolve Wells Fargo of their obligation to verify the check 's authenticity. 
Regulation CC ( Expedited Funds Availability Act ) 12 CFR 229.33 : Wells Fargo may have failed to comply with Regulation CC, which requires banks to promptly notify customers of issues regarding the nonpayment or rejection of checks. I was not given clear or timely communication explaining the rejection of my mobile deposit, nor was I provided a reasonable opportunity to resolve the issue. 

Fair Credit Reporting Act ( FCRA ) 15 U.S. Code 1681 : If Wells Fargo reported me to XXXX for alleged fraudulent activity, they may have violated the FCRA by providing inaccurate or unverified information. Under 15 U.S.C. 1681, consumers have the right to dispute inaccurate information reported to consumer reporting agencies. Wells Fargos actions may have caused undue financial hardship by limiting my ability to open accounts elsewhere.

Unfair, Deceptive, or Abusive Acts or Practices ( UDAAP ) Dodd-Frank Act : Wells Fargos refusal to verify the checks legitimacy with XXXX XXXX XXXX or the issuing bank, combined with their unilateral decision to terminate my account without proper investigation, may constitute an unfair or deceptive practice under UDAAP. Their justification of my account being " too new '' to handle the transaction does not exempt them from conducting a proper investigation. These actions likely/may interfered with my ability to manage my finances and resolve the issue in good faith, potentially violating consumer protection laws.

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