Consumer complaint received 2026-05-21 00:00:00
Product: Checking or savings account — Checking account
Issue: Managing an account — Deposits and withdrawals
Company: WELLS FARGO & COMPANY
State: FL

Complaint narrative:
XXXX XXXX, the third-party company responsible for processing and disbursing student refunds on behalf of XXXX University , issued a direct deposit refund in the amount of approximately {$10000.00} on or around XXXX XXXX XXXX. According to the refund records, the funds were sent via ACH/direct deposit to Wells Fargo account ending in XXXX. However, the receiving Wells Fargo account had already been closed prior to the deposit attempt. Wells Fargos own mobile banking application clearly identifies the account as closed and unavailable for transactions. Despite this, the refund was still marked as issued, and there has been no clear explanation regarding whether the funds were rejected, returned, or are being held internally by the bank. XXXX XXXX advised me to contact Wells Fargo directly regarding the status of the funds and the return process. I contacted the bank seeking clarification and assistance regarding : Whether the ACH deposit was automatically rejected due to the account closure ; Whether the funds are being held internally despite the account no longer existing ; When the funds will be returned to XXXX XXXX so the refund can be reissued correctly ; and Why there has been a delay in rejecting or returning funds associated with a closed account. Under the Electronic Fund Transfer Act ( EFTA ), 15 U.S.C. 1693 et seq., and Regulation E, financial institutions are required to properly investigate and handle electronic fund transfer issues involving consumer accounts. Additionally, ACH transactions are governed by XXXX Operating Rules, which generally require that transactions sent to closed accounts be returned by the receiving financial institution within the required return timeframe rather than retained or delayed without explanation. The Wells Fargo bank representative informed me that from the banks side the funds/account were essentially in limbo and stated there was nothing they could do other than tell me to wait. I was not provided any meaningful explanation, escalation, investigation details, ACH return information, or estimated timeline regarding the handling of the funds. Being told that over {$10000.00} in educational refund funds are in limbo without a clear answer as to whether the funds were rejected, internally held, or returned is unreasonable and has caused significant uncertainty, financial hardship, and distress. Because Wells Fargo had prior knowledge that the account was closed and incapable of receiving deposits, the bank had a duty to promptly reject and return the ACH payment to the originating institution. Any unreasonable delay, internal hold, or failure to timely process the return may constitute improper handling of consumer funds and may interfere with my ability to access educational refund money intended for tuition, housing, transportation, and living expenses. As a direct result of the banks actions and/or delay : I have been deprived access to over {$10000.00} in educational funds ; I have suffered financial hardship and uncertainty regarding the status of my money ; The originating institution has been unable to promptly reissue payment ; and I have spent significant time attempting to trace and resolve the transaction. I am requesting : An immediate investigation into the status and location of the ACH funds ; Immediate return of the funds to XXXX XXXX if the account can not legally accept deposits ; Written confirmation regarding whether the ACH was rejected, returned, or internally held ; ACH trace and return information, including any applicable return codes ; Compensation or corrective action to the extent Wells Fargo failed to timely process the return in accordance with applicable banking and ACH rules ; and Assurance that Wells Fargo is complying with consumer protection laws governing electronic fund transfers and closed accounts. Attached documentation includes : Screenshots from XXXX XXXX showing the refund issuance details and transaction information ; Screenshots from Wells Fargo confirming the receiving account ending in XXXX is closed. The continued delay and lack of transparency regarding the handling of these funds has interfered with timely access to money intended for educational purposes and has caused avoidable financial distress.

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