• Report: #844111

Complaint Review: Wells Fargo Bank

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  • Submitted: Fri, February 24, 2012
  • Updated: Sun, February 26, 2012

  • Reported By: Josephine — Orlando Florida United States of America
Wells Fargo Bank
Internet United States of America

Wells Fargo Bank Home Equity Mortgage Wells Fargo chose to not honor the overdraft protection set up on a Wells Fargo account, to cover a Wells Fargo home equity mortgage payment, where there was clearly enough funds to cover. Internet

*Consumer Comment: Well either way it does not make much difference...

*General Comment: I think I got it now.

*Consumer Comment: Not their own money..

*General Comment: I can't see this.

*Consumer Comment: Standard Response 103A

*Consumer Comment: Are you sure you understand what overdraft protection is?

*Author of original report: This rebuttal is not one - it misses the actual issue

*Consumer Comment: Sounds like you have other issues

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We have overdraft protection on Wells Fargo accounts to make sure that all our automated online bills will be paid in full. However, on Feb 22, 2012, I was informed by Gabielle Carranza, Collection Supervisor, Wells Fargo, Tel: 602 328 5502, that our Wells Fargo Mortgage was 10 days overdue, accumulating an extra $170 in interest payments. I was informed that Wells Fargo will not use the overdraft protection that is set up by a Wells Fargo customer to cover any Wells Fargo bills. After further discussion and follow up calls with Mr Carranza, it was suspected that this may have been a mistake and he told me that Robert Ortiz, Sand Lake Orlando, FL Branch Manager at 407 812 000 or Cherie Anif at 407 649 5158 at my local branch, will call me to fix the problem. I have not heard back from Mr Ortiz nor Ms Anif and now no one picks up the phone and several repeated follow up calls to learn the status of this possible mistake. In the meantime, I immediately had Mr Carranza paid the mortgage out of my Wells Fargo account that is used for overdraft protection, as there was more than enough funds. However, after review, I noticed that the break down of my payment was: Principal $93.42 and Interest: $924.34. Where Dec 30, 2011 payment breakdown was Principal $500.18 and Interest $517.58. Therefore, because Wells Fargo choose to not honor the overdraft protection on a Wells Fargo account, to cover a Wells Fargo home equity mortgage payment, (where there was clearly enough funds to cover and even though Wells Fargo used the balance transfer to cover all other non-Wells Fargo bills that month), this translates to Wells Fargo gaining $406.76 in extra interest payment. How can this be ethical?  This is clearly a conflict of interest and unfair practice by Wells Fargo. We have had nothing be problems with our mortgage since the take over from Wachovia to Wells Fargo, where they seem to repeatedly find ways to get extra interest payments. 

This report was posted on Ripoff Report on 02/24/2012 01:23 PM and is a permanent record located here: http://www.ripoffreport.com/r/Wells-Fargo-Bank/internet/Wells-Fargo-Bank-Home-Equity-Mortgage-Wells-Fargo-chose-to-not-honor-the-overdraft-protect-844111. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

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REBUTTALS & REPLIES:
1Author 7Consumer 0Employee/Owner
Updates & Rebuttals

#1 Consumer Comment

Well either way it does not make much difference...

AUTHOR: Ronny g - (USA)

.. whether the OP thought the bank would pay the mortgage with their own money, or the money from the OPs account. The bank does not decide on it's own by telepathy to pay bills for you even if it is a mortgage payment from the same bank..or an auto loan, or a business loan etc...they only can and will do that if the customer signs up for auto-pay. 

And furthermore, all of that has little to do with overdraft protection unless as I stated previously I am missing something. If I am it has not been explained yet.
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#2 General Comment

I think I got it now.

AUTHOR: MartyMarsh - (United States of America)

I thought she was talking about useing her overdraft protection,but anyway this is one to learn from.
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#3 Consumer Comment

Not their own money..

AUTHOR: Ronny g - (USA)

AUTHOR: MartyMarsh - Stillwater (United States of America)SUBMITTED: Saturday, February 25, 2012   "What this boils down to is,you want them to pay themselves with there own money?"

Actually what I think the OP is implying is not the banks own money, but since the OP had an account with them and claims there was enough in that account to cover the mortgage payment, that they should have do so.

If this is the case there is no case since the bank does not decide where the mortgage payment comes from..heck it might not even be legal for them to charge the bank account or transfer funds for a mortgage payment without authorization which would be autopay for example which the customer must sign up for or they won't just do it on their own.

Now I am not so sure how this has anything to do with overdraft protection. Overdraft protection is a service that will cover a bounced check or ACH payment or debit card transaction if the account does not have enough funds (up to a specified maximum amount). The OP claims if I understand the report correctly, that there was enough funds so overdraft protection was not used in this case. Just a penalty for a late payment..and a rather harsh one. But it seems this was the customers fault in this case unless I am missing something?



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#4 General Comment

I can't see this.

AUTHOR: MartyMarsh - (United States of America)

   What this boils down to is,you want them to pay themselves with there own money?
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#5 Consumer Comment

Standard Response 103A

AUTHOR: Robert - (U.S.A.)

Yep when someone does not like what is said they immediately go to the "You must be an employee".  Well to put your mind at ease I do not now, or ever have worked for any bank or financial institution.

It is interesting how you(like others, so you are not alone) go to the "Well it is the bank's fault", instead of looking at their responsibility to the situation.  I would bet that if you look back that all of the fees you have paid for this "overdraft protection" it is more than this single $170 that you are complaining about.  So where is the "Conflict of Interest" if they keep taking these fees when they could just say "Hey why not just transfer the money yourself"?

I mentioned how to avoid these fees in the first place.  If their terms state that they won't provide overdraft protection for transfers between their own accounts that that is their terms.  If you don't like it then find a bank that will..but I have a feeling that you will be looking a LONG time.  Or better yet do as I said and don't even put yourself into this situation in the first place.

You could very easily look at your bills and make sure there is enough money in your primary account  If there is not enough money in it then transfer it BEFORE the bills come in.  You could even just change your Auto-Pay for your Mortgage to this other account and never worry about it.

Or you can ignore all of this advise, keep doing what you are doing, and maybe..possibly..eventually at some point in the future get the bank to change their terms all the while getting hit with the same thing over and over.
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#6 Consumer Comment

Are you sure you understand what overdraft protection is?

AUTHOR: Ronny g - (USA)

Well bottom line is that banks are a "fee based" for profit industry so of course it is in their best interest that you overdraft as well as be late since they can charge fees if you do.  Now that being said I am assuming the the overdraft protection you are enrolled in will cover a bounced check or payment made that has insufficient funds but it does not "auto pay" your mortgage payment.

So if you did have the funds in the bank account to cover the mortgage, "auto pay" would have saved you the interest penalty you were subjected to due to being late with the mortgage. Unless you have some kind of other arrangement that if you are late with the mortgage payment they treat it as an "overdraft" even though you have enough funds in their bank....honestly that makes no sense to anyone. Now if you had sent them a payment and overdrafted and they did not cover it when you were actively enrolled in OD protection I could see a legitimate complaint here if they charged you anymore then the cost of covering the overdraft as per the terms.
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#7 Author of original report

This rebuttal is not one - it misses the actual issue

AUTHOR: Josephine - (United States of America)

I clearly see that the rebuttal from Robert - Irvine (U.S.A.) is most likely from a bank manager or employee, probably from Wells Fargo, as the response does not deal with actual issue at hand. The issue being that there is a conflict of interest and unfair practice by Wells Fargo. By them simply choosing not to honor the overdraft protection set in place to cover a Wells Fargo bill especially when there is more than enough funds to cover in the combined Wells Fargo accounts.  This bank then profited nearly 50% by ignoring what the customer set up. So what is next if Banks can decide to not pay the online bills at their own discretion, so that they can tremendously profit?

How can this be ethical?

What other Government bodies or Federal representatives can this case be sent to?
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#8 Consumer Comment

Sounds like you have other issues

AUTHOR: Robert - (U.S.A.)

It appears that you are relying on Overdraft Protection as a method of managing your accounts.   If you are accessing your Overdraft Protection more than once every few months you are not managing your accounts as you should.  In fact, keep in mind that a majority of people who have Overdraft Protection NEVER need to use this coverage.

Your Mortgage is probably the single biggest payment you make every month.  It should have been very obvious that a $1000 payment did not get deducted from your account.  You should never have been late in the first place had you been managing your accounts.  Once you realized it didn't get paid, you could have MANUALLY moved the funds from one account to another.

For anything that deals with money transfers between accounts you will find that most(if not all) banks have a similar policy.  It also extends to other types of funds as well.  For example you will not find a single Credit Card company that will allow you to do a "Balance Transfer" between two of their accounts.
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