Consumer complaint received 2026-05-20 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: WI

Complaint narrative:
ISSUE SUMMARY On or about XXXX XXXX XXXX my Wells Fargo Everyday Checking account ending XXXX experienced a catastrophic cascade of failed ACH transfers and overdrafts initiated by a third party ( XXXX XXXX XXXX XXXX XXXX Wells Fargo authorized XXXX ( XXXX ) ACH debits totaling approximately {$250000.00} against a checking account that had never held more than approximately {$8000.00}. Wells Fargo allowed my account to go negative by more than {$110000.00} and simultaneously allowed my Wells Fargo overdraft-protection credit card ending XXXX to be drawn to its limit, without ever issuing a fraud alert, declining the transactions for non-sufficient funds, or contacting me to verify the unusual activity. The underlying ACH activity was caused by XXXX 's automated " instant deposit '' approval system and is the subject of XXXX XXXX XXXX XXXX. XXXX against XXXX. However, this complaint is specifically about Wells Fargo 's separate failures in detecting, halting, or otherwise reasonably responding to the anomalous pattern of activity on my account. WHAT WELLS FARGO DID XXXX. Authorized XXXX consecutive XXXX debits totaling approximately {$250000.00} against an account with a typical balance well under {$8000.00}. XXXX. Permitted the account to reach a negative balance exceeding {$110000.00} before any intervention. XXXX. Drew the linked overdraft-protection credit card ( ending XXXX ) to its credit limit without an account-holder verification call. XXXX. Issued no fraud alert during a pattern of ACH activity approximately XXXX times normal account volume. XXXX. Did not contact me by phone, email, app push notification, or other means to verify whether the unusual activity was authorized. XXXX. Returned individual transactions as " Items Returned Unpaid '' while continuing to authorize subsequent identical ACH debits from the same source, multiplying the harm. WHY WELLS FARGO 'S CONDUCT IS CONCERNING A. Regulation E ( Electronic Fund Transfer Act, 12 CFR Part 1005 ) governs electronic transfers and imposes obligations on banks to investigate disputes and limit consumer liability for unauthorized transactions. B. UCC Article XXXX requires banks handling commercial funds transfers to follow " commercially reasonable '' security procedures and detect anomalies. XXXX Wells Fargo 's own published account agreements and overdraft policies typically impose internal limits on the negative balance an account may reach before fraud review. XXXX Industry best practice requires banks to flag transactions when volume or velocity dramatically exceeds historical account patterns. In my case, the volume of XXXX debits in XXXX hours was approximately XXXX times the typical monthly activity on the account. No reasonable fraud-monitoring system would have failed to flag this pattern. Either Wells Fargo 's systems failed, Wells Fargo 's policies were not followed, or Wells Fargo 's policies are inadequate to protect consumers any of which warrants CFPB review. HARM CAUSED As a direct result of Wells Fargo 's failure to detect or halt the cascade : - My checking account went over {$110000.00} negative. - My linked overdraft-protection credit card was drawn to its limit. - Multiple other credit accounts were closed by their issuers in the weeks that followed, as my credit profile collapsed. - My FICO score dropped from approximately XXXX ( XX/XX/XXXX ) to approximately XXXX ( XX/XX/XXXX ) a XXXX decline. - I lost housing stability and have been working to rebuild ever since. - Wells Fargo subsequently referred the matter to a collection process. I have been making payments through a debt-settlement service ( National Debt Relief ) since approximately XX/XX/XXXX, but Wells Fargo has continued to contact me stating they have not received payment, suggesting either Wells Fargo or its agent has not coordinated with the settlement administrator. WHAT I AM REQUESTING FROM WELLS FARGO 1. Written explanation of Wells Fargo 's fraud-detection policies and why no alert or hold was issued during the XXXX XXXX XXXX XXXX cascade. XXXX. Disclosure of the maximum negative-balance threshold Wells Fargo permits before initiating fraud review on a personal checking account. XXXX. Account history showing all XXXX debits, returned items, overdraft fees, and related charges from XX/XX/XXXX through the date of account closure. XXXX. Confirmation or denial that Wells Fargo 's conduct complied with Regulation XXXX, UCC Article XXXX, and Wells Fargo 's own published account agreement and overdraft policies. XXXX. Coordination with XXXX XXXX XXXX to resolve the outstanding balance and stop further collection calls during the active settlement program. REFERENCE NUMBERS- FINRA XXXX Case No. XXXX XXXX XXXX XXXX XXXX XXXX and XXXX XXXX XXXX XXXX Prior CFPB Complaint No. XXXX ( against XXXX XXXX XXXX ) XXXX admitted certain facts in its response to that complaint - Wells Fargo Everyday Checking account ending XXXX - Wells Fargo overdraft-protection credit card ending XXXX

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