Our complaint sent to Wells Fargo and Co. CEO John G. Stumpf on 9/30/2013:
Mr. John G. Stumpf
Chairman, President and Chief Executive Officer
Wells Fargo Bank NA
420 Montgomery Street, San Francisco, CA 94104
Dear Mr. Stumpf:
We became customers of Wells Fargo in March 2008, when we purchased a foreclosed property from Wells Fargo for $237,000 with $30,000 down and a 30 year mortgage for $213,000 at 5.625% annual interest. Over the years we made every payment on time or early, plus extra payments whenever we could, as our goal is to be entirely debt-free at retirement.
Late 2012, we received numerous letters from mortgage lenders, Wells Fargo included. The letters advised us to take advantage of historically low interest rates and the Government’s new HARP program to refinance our home. We contacted 11 of these lenders, who, after checking our credit history, income and estimated home value, offered us interest rates as low as 2.625% APR on a 15 year note, with 0 points and 0 out of pocket costs, other than a required $425-$575 appraisal fee. A few of them guaranteed our loan would close within 30-45 days.
On January 3, 2013, we called your “Home Mortgage Specialist”, Michael Fontana, who provided a long list of benefits to retaining our mortgage with Wells Fargo. The primary reasons that influenced us to “stop swimming with the sharks” included the fact that we were “valued, current customers with an unblemished record”; that, “Wells Fargo was a direct lender, not just a “broker who would end up selling our loan back to Wells Fargo anyway”; that we were “guaranteed the lowest interest rates and fees available in the market, with zero out of pocket costs, other than a required $22 to run our credit history”. The most persuasive reason Mr. Fontana gave us was that “no appraisal was required”, which would “save us even more and accelerate our closing”. At the end of this conversation, we agreed to start the HARP loan application and authorized him to charge our credit card.
We deeply regret that decision. Your company strung us along for five stressful months, holding our mortgage hostage, and then abruptly cancelled our loan for reasons entirely beyond our control. Meanwhile, interest rates increased and all the while you continued to collect 5.625% interest from us. We suspect this was deliberate.
As a result, we’ve suffered a financial loss of no less than $17,297.14, not to mention countless hours of our wasted time or interest we could have earned on all those “unapplied” extra payments we made towards our loan over the years.
The attached document outlines our horrendous experience with your company. With the millions of mortgages you service, we’re confident our experience isn’t unique, If you wish you avoid the cost of litigation and attorneys, we expect a response within 10 business days with a fair, reasonable and adequate settlement, considering the strength of our case for which we will most likely prevail at a trial.
Gordon C. Gephart and Christine Wallace
Product or Service Mentioned: Wells Fargo Refinance.
Monetary Loss: $18000.