Consumer complaint received 2023-02-15 00:00:00
Product: Credit card or prepaid card — General-purpose credit card or charge card
Issue: Other features, terms, or problems — Problem with rewards from credit card
Company: WELLS FARGO & COMPANY
State: WA

Complaint narrative:
I have been a loyal customer of Wells Fargo for nearly a decade, maintaining a single checking account and two credit cards with the institution. Both credit cards have been on auto-pay since their inception, and I have established a strong track record of repaying them on time, which has resulted in an excellent credit score. 

On the XXXX of XXXX, XXXX, I discovered that both of my credit cards with Wells Fargo were closed without prior disclosure. Upon contacting the institution to request information regarding the issue, I was informed to expect a letter that would detail the reasoning behind their actions. 

A few days later, I received a letter from Wells Fargo which did not provide any explanation as to why my credit cards were closed. When I attempted to seek clarification by calling the phone number provided in the letter, I was directed back to the letter for answers. Furthermore, I was informed that my checking account would also be closed on the XXXX of XXXX, XXXX. 

Around the same time, I discovered that all of the cash back rewards I had earned through the credit cards were frozen within the Wells Fargo app. These rewards were displayed on the app 's home page as simple dollar amounts, rather than " points '', and were positioned above my list of accounts and cards. Due to their display as dollars, I had allowed these cash back rewards to accrue over the years as a form of " savings '' or a " rainy day fund ''. 

At this stage, I reached out to Wells Fargo in an effort to unfreeze my cash back rewards. However, I was informed that the rewards would be seized by the institution following the closure of my credit cards. 

I inquired about the possibility of reapplying for the same credit card, and was told by two separate representatives that I can should be able to apply and reopen the same card, and the rewards would reset to {$0.00}. 

On the XXXX of XXXX, XXXX, I initiated contact with Wells Fargo 's " Customer Advocacy Group '' after being directed through several channels. On the XXXX of XXXX, XXXX, I had a meeting with a banker at my local branch. After the banker and I spent nearly 2 hours on the phone with various departments, another case was opened with the same " Customer Advocacy Department ''. 

On the morning of the XXXX of XXXX, XXXX, I received a phone call from Wells Fargo in which a resolution to the case was presented. However, I was informed that the cash back rewards I had accrued would not be returned due to Wells Fargo 's policy. 

I have received no concrete reason for the closure of my accounts beyond vague statements such as " check the letter in the mail '' or " Wells Fargo made a business decision to close your account ''. 

In summary, Wells Fargo has elected to close all of my accounts with the institution without providing any clear justification for their actions. Furthermore, they have chosen to seize the cash back rewards that I had accumulated over the course of many years with them. 

The amounts of rewards in question : - {$3500.00} in rewards are " frozen '' - {$34.00} is not frozen, and I was able to claim {$25.00} of that. 

I am able to access my cash back redemption history via the Wells Fargo app for the past 36 months. The last 36 months of history indicate that I redeemed a total of {$1000.00} in rewards in XXXX of XXXX. 

I find it perplexing that I was able to accumulate my cash back rewards over the years without any issues. However, after redeeming a portion of the rewards, only a few months later my accounts were closed and the remaining rewards were seized. This is particularly surprising given that I have no history of defaulting on any credit card payments, and have maintained a good credit score throughout my time as a Wells Fargo customer. 

There are several reasons why I believe my rewards should be returned : Firstly, I was not given any prior notice or disclosure that my accounts would be closed, and my rewards were frozen unexpectedly, leaving me with no notice to transfer them elsewhere or " redeem ''. 

Secondly, the Wells Fargo app displays the rewards as dollars and not points, which can be extremely misleading. This display led me to believe that the rewards were already redeemed and were as safe as the dollars in my checking account. Consequently, I allowed the rewards to accrue in the rewards section, thinking of it as a type of savings. As such, the display in the app did not convey that the rewards were a form of " points '' that had no value until redeemed and could be seized at any time without explanation. 

For clarity, I have attached some screenshots of how the rewards appear in the Wells Fargo app. 
" XXXX '' depicts the rewards displayed as dollars and " cash rewards '' on the app 's home page. 
" XXXX '' shows the balance indicated as " available cash rewards '' in the overview. 
" XXXX '' displays the rewards listed with an account number and an " available balance, '' again shown as dollars and not points. 
" XXXX '' shows the rewards listed as " cash rewards. '' Again, each of the displays in the Wells Fargo app for my cash back rewards indicates that they are in dollar amounts and do not suggest that they are in the form of " points '' that hold no value until redeemed, and that they could be seized without cause. As a result, I believed that the rewards balance was equivalent to cash in my checking account and allowed them to accumulate. 

Thirdly, I was able to redeem only {$25.00} of the rewards after my cards were closed, but the majority of the rewards remained frozen and were not redeemable. This situation highlights the inconsistency of Wells Fargo 's policies regarding cashback rewards.

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