Consumer complaint received 2025-08-19 00:00:00
Product: Checking or savings account — Checking account
Issue: Problem caused by your funds being low — Overdrafts and overdraft fees
Company: WELLS FARGO & COMPANY
State: CA

Complaint narrative:
I am filing a complaint regarding my banks overdraft protection and credit card auto-pay system. The banks system applied contradictory rules that caused significant financial harm. 

On XX/XX/2025, my Wells Fargo credit card auto-pay attempted to withdraw {$4500.00} from my checking account. I had already paid well above the minimum due in prior payments. My checking account did not have enough cash to cover this withdrawal. Instead of declining for insufficient funds, the system triggered overdraft protection by drawing funds from the same credit card it was paying off, resulting in advances of {$2400.00}. This created circular transactions and forced an overdraft situation. 

On the same day, I attempted to make a debit card purchase at a restaurant and a coffee shop. The restuarant posted via another advance, but the coffee shop was declined {$10.00} ( which is what caused me to become aware of this situation in the first place ). That transaction was declined for insufficient funds, and overdraft protection did not activate even though I had available credit. Which required me to pay with a seperate card. This shows overdraft protection was applied selectively : it covered a large internal withdrawal that benefited the bank, but declined a small retail transaction that harmed the customer. Which further shows that the system is capable of declining for insufficient funds even with overdraft protection. 

When I asked for a payment reversal ( on the business day it posted, though it was first processed on a non business day XX/XX/2025 ), I spoke with five different representatives who gave contradictory answers. I was first told reversals were impossible, then later told they were possible, and finally was able request one after repeated insistence that this what I was seeking from the beginning. The final banker insisted the system worked correctly and would cover any overdraft, internal or external, shifting the blame to me. Which was simply not true given that coffee shop charge was declined for insufficient funds, which easily could have applied to my mistaken autopay situation. The banker who processed the reversal request required me to provide both my account number and routing number. This makes no sense, since the reversal was entirely within the same bank and my account information is already on file. It suggests that the banks credit and deposit systems operate as separate entities, forcing customers to re-supply routing details as though the transaction were external. This creates unnecessary complexity, shifts liability onto the consumer, and indicates deeper systemic flaws.

The banks inconsistent handling of overdraft protection, its contradictory explanations, and the burdensome reversal process demonstrate unfair and deceptive practices. I believe this issue reflects a systemic problem in the banks internal operations that may affect other customers.

Ultimately, I am and was a customer in good standing with aggressive payments toward my own debt, responsible use of balance transfer, and over all sought to better my overall financial health. Which has currently been derailed. As of the submission of this complaint have no money and 25- 30 % interest on an advance I did not want nor protected me.

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