Applying Secured Credit Card Collateral to Closed Acct Balance.
On Sat., 06-07-2014, I called Wells Fargo Bank - (card servicing) to close my Secured VISA Credit Card:
- Upon inquiring as to when the collateral funds, securing the card, would be applied to my outstanding balance, I was advised it "should occur" by the next statement cycle ending date of 07-02-2014. However, until the balance was satisfied, I would still incur interest.
- Upon conclusion of the call, I went on-line to verify the account closure. Acct info stated acct was "closed" - (as requested) with a $25 min payment due on the 27th of June. Moreover, a statement that read "....even though acct is closed, you may still make payments on this account to resolve the balance"
- With consideration of the $700 Wells Fargo is 'holding' as collateral & considering my outstanding balance was / is approx. $552, I called back on XX-XX-XX at 1:52PM, to address the need to have my collateral satisfy my outstanding balance on / or before the next statement cut off date - thereby, offsetting the need for me to pay out additional payments, I would use my money in the collateral account to satisfy the outstanding balance.
- In the aforementioned call, I spoke with a ***** - (emp. ******* In addition to his demeaning behavior - (chuckled & condescending), he failed to provide me an street address where a USPS certified / return receipt letter could be sent to request payment from the collateral acct to my outstanding balance - (***** did not resolve my issue).
- With my requests not being resolved, I emailed Wells Fargo Bank -via- their web site link requesting my outstanding balance, on the now 'closed acct', be paid from the proceeds of the collateral acct. I received an email reply stating my request was being forwarded to Wells Fargo Executive Credit Card Dep't.
- On Monday, 06-09-2014, a Wells Fargo employee called me at 9:20am to address the email I sent the previous Sat. The employee, **** *** advised that any payment back to my acct and / or myself would take 45-60 days.
- I advised this rep that I respect & understand the banks policy to refund back to me any difference between the collateral balance -vs- what's owed - yet, per the terms & disclosure's outlined in Wells Fargo secured credit card agreement, it states "if the account is closed for any reason, the collateral may be applied to any outstanding balance"
- The terms of Wells Fargo do NOT state / provide a 45 - 60 day time line as **** *** kept repeating. As addressed, the application of the collateral balance - NOT REFUND / OVER PAYMENT - is ambiguous and again, does NOT provide a time line. Therefore, considering Wells Fargo is in possession of my secured funds, my request to apply the PORTION of my $700 secured to my outstanding balance, on / or before my next cycle date of 07-02-14, is reasonable based off the terms as outlined in the credit card agreement.
- It's very IMPORTANT to note. I understand where the terms of the agreement stipulate the return of any over payment back to me - (agreement states 60 days). I'm NOT disputing that SEPARATE issue.
- My grave concern is the failure of Wells Fargo to abide by my verbal & written request(s) to apply the portion of my secured funds to my outstanding balance on / or before the next statement date of 07-02-14.
- I have worked tirelessly to build mt credit. Wells Fargo's failure to pay off my outstanding balance from my collateral acct will result in a negative impact on my credit scores - (i.e. - closed with a balance & percentage of credit usage, etc.)
- Over the course of 2+ years, I have never missed a payment to Wells Fargo & "overall" have maintained the acct in excellent condition.
- I will pay the $25 min due on June 27, 14 and request Wells Fargo to abide by their UN-STIPULATED terms - and, thereby credit MY collateral funds to the outstanding balance on my CLOSED secured credit card ON / or BEFORE the next statement cycle date of 07-02-14.
Case is being handled by another organization: Office of the Comptroller of the Currency
Apply, ON / OR BEFORE the next statement closing date of 07-02-14, the portion of the $700 in the secured credit card collateral account to the approx outstanding balance of $552 on the VISA credit card.
Final Consumer Response