Consumer complaint received 2026-01-09 00:00:00
Product: Checking or savings account — Checking account
Issue: Managing an account — Funds not handled or disbursed as instructed
Company: WELLS FARGO & COMPANY
State: CA

Complaint narrative:
I am writing to formally file a complaint against Wells Fargo Bank , N.A . regarding its handling of a federally approved student loan disbursement, the improper restriction and closure of my checking account, and the continued withholding of funds that rightfully belong to me. 
I am a XXXX XXXX  student enrolled at XXXX XXXX, where I am pursuing a XXXX XXXX. I applied for and was approved for two Federal Direct Unsubsidized Loans through the United States Department of Education. These loans were fully approved by the Federal Student Aid Office. On XX/XX/XXXX, the loan funds were disbursed, and an electronic refund ACH credit in the amount of {$18000.00} was deposited into my Wells Fargo checking account on XX/XX/XXXX. 
Due to a clerical error within the XXXX XXXX system, the account holder 's name on the refund record was incorrectly listed as Wells Fargo rather than my name, XXXX XXXX. Despite this error, the funds were intended solely for me and were directly tied to my student account and federal loan approvals. 
I had access to the funds for several hours, and on XX/XX/XXXX, at approximately XXXX XXXX., I spent just over {$600.00}. Shortly thereafter, Wells Fargo placed a hard hold on my account and notified me that it would be closed on XX/XX/XXXX, due to this deposit. 
Over the following days, I repeatedly communicated with Wells Fargos Loss Prevention department and submitted extensive documentation demonstrating that the funds were legitimate federal student loan proceeds intended for me. Each document was rejected without a clear explanation. I received inconsistent and conflicting information from multiple representatives and was never provided with a definitive list of acceptable documentation. 
On XX/XX/XXXX, Wells Fargo stated that it required a notarized document from a public university account office confirming that the funds belonged to me, yet they provided no template or instructions for such documentation. Despite this, I submitted two official documents from the XXXX student account office that were sealed and signed by a university clerk and explicitly confirmed that the funds were intended for me. These documents were also rejected. 
On XX/XX/XXXX, I was informed for the first time that XXXX would need to recall the funds for me to possibly receive them, and that Wells Fargo intended to proceed with closing my account. I was further told that unless the funds were recalled, I would not receive the remaining balance via cashiers check, as Wells Fargo would be entitled to the funds. This instruction was both untimely and unreasonable. Under XXXX ACH rules, an originator generally has only five business days from the settlement date to initiate a reversal. By the time Wells Fargo communicated this requirement, that window had already passed. 
Wells Fargo failed to promptly reject or return the deposit upon identifying the alleged name discrepancy. Instead, it accepted the deposit, allowed partial use of the funds, then froze the account and initiated closure, thereby preventing timely resolution. 
As of today, Wells Fargo is threatening to permanently close my account and retain {$17000.00} that remains in the account. These are federal student loan funds issued in my name for education and living expenses. I am currently past due on rent and car payments, and have no clarity as to whether I will regain access to these funds. 

I have attached all documentation previously provided to Wells Fargo, proving the validity of the loan sent from Federal Student aid to XXXX, proof from UCLAs Database that they intended to disburse the funds into my account, as well as the account closure notice, for your review. 

Sincerely, XXXX 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 non-monetary relief