Wells Fargo & Company Complaint - Predatory Lending Practices
DENVER, COLORADO -- My wife and I went to our local Wells Fargo mortgage center in Colorado to ask about refinancing our two auto loans that are currently with a credit union. We pay 7.5% interest and have credit scores just below 700.
We sat with an account manager for Wells Fargo, who had all our financial info and credit scores and the first offer was to give us two lines of credit, one for each vehicle at 160% of their book value which would be significant cash out to our pockets. We were told that they could offer interest rates around 3.8%
So, quite excited, we went home and did our math, but when we came back to go over the figures, we were told the interest would be an undetermined percent between 12 and 20% and of course the application and refi fees.
When we explained that was a ridiculous offer, the account manager then, already having all our financial information, noticed we had some equity in our home and proceeded to push very hard for a debt consolidation consisting of our two credit card debts and the two autos. My continued comments that I do not want to place unsecured debt against our house had absolutely no affect in their strategy to lock us in a loan with them.
As a last ditch effort, we were offered two credit card accounts with a combined 9k limit at 18%.
When I asked why in the heck we would even consider more credit when we came in to refi two autoloans, the response was “this would help our credit scores”.
Its baloney like this that the public needs to realize.
Wells Fargo’s only goal was to get us to take out cash and credit to get us further in debt and at a much higher interest rate then that which we already have. This is so typical of lending institutions when you’re not independently wealthy. You’re just another victim if you believe the rubbish and misleading advice they give you.
John Stumpf, CEO of Wells Fargo could make the decision to offer competitive rates to help people refi to lower rates which would save consumer funds, increase savings, and that would promote spending too.
Bottom Line: Wells Fargo has predatory like lending practices and should have to pay the government back since they can’t account for billions of dollars they accepted from taxpayers. They are part of the problem and until their greed can be suppressed, our citizens will continue to suffer.