Consumer complaint received 2024-12-19 00:00:00
Product: Debt collection — Other debt
Issue: Took or threatened to take negative or legal action — Seized or attempted to seize your property
Company: WELLS FARGO & COMPANY
State: NC

Complaint narrative:
This letter constitutes a formal notice of a billing error concerning account. I am requesting immediate review and correction of this error, specifically regarding the nature and accounting treatment of the alleged debt. I am invoking my right to recoupment based on established accounting principles, relevant Financial Accounting Standards Board ( FASB ) pronouncements, and applicable sections of the United States Code.

My understanding of double-entry bookkeeping, as implemented in a banking ledger ( general ledger ), is that every debit entry must have a corresponding credit entry. This principle ensures balance and transparency in financial records. In the context of this alleged debt, I require clarification on the following : Ledger Classification : Please provide documentation clearly indicating on which side of your ledger this alleged debt resides. Specifically, is it classified as a financial asset ( credit ) or a financial liability ( debit ) for your institution? 
Offsetting/Counterclaim : I am asserting a counterclaim against any alleged receivable you claim to hold against me. I am requesting you offset this alleged debt with my accounts payable and or other assets held by your institution. This request is based on the principles outlined in FASB Accounting Standards Codification ( ASC ) XXXX ( formerly XXXX XXXX, Offsetting of Financial Assets and Liabilities ), which governs the conditions under which offsetting is permissible. I request you provide a documented explanation if your institution does not plan on offsetting my accounts payables or other assets against the alleged receivable. This is also in line with recoupment as an equitable remedy. 
Furthermore, in addressing this billing error and my recoupment request, I direct your attention to the following authoritative guidance : FASB ASC : I incorporate by reference relevant FASB pronouncements, including but not limited to principles of securitization accounting ( formerly XXXX XXXX ) and guidance on derivative instruments and hedging activities ( formerly XXXX XXXX ). These standards are integral to understanding the proper accounting treatment of financial instruments and related transactions. FAS 125 : Accounting for Transfers of Financial Assets : This standard outlines the accounting treatment of securitization transactions, including the transfer of financial assets to a special purpose entity ( SPE ).

FAS 140 : Accounting for Transfers of Financial Assets and Liabilities : This standard addresses the accounting for transfers of financial assets and liabilities, including the criteria for determining whether a transfer qualifies as a sale or a financing arrangement. * FAS 133 : Accounting for Derivative Instruments and Hedging Activities : This standard provides guidance on the accounting for derivative instruments and hedging activities, including the recognition, measurement, and disclosure of derivatives.

Title 12 U.S. Code : I remind you that financial institutions are mandated by Title 12 of the U.S. Code to adhere to Generally Accepted Accounting Principles ( GAAP ) and Generally Accepted Auditing Standards ( GAAS ). Your accounting practices must comply with these mandates.

Title 15 USC : Unfair Debt Collection Practices Act ( FDCPA ) This letter is also to serve as a written notification pursuant to the FDCPA.

UCC : This letter is to provide notice as to the nature of the instrument in question. The underlying instrument is no longer a negotiable instrument it is now a security. In accordance with XXXX XXXX, XXXX the validity of the instrument is in question. 
I contend that without proper documentation demonstrating the correct accounting treatment of this alleged debt, including its classification and corresponding entries within your ledger, the validity of the billing is in question. I request that you provide this information within [ 10 ] days of the date of this letter. Failure to provide satisfactory documentation and correct this billing error may result in further action.

I expect a prompt and thorough response to this matter.

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