Flippin Sweet Dude

January 7, 2010

3 Reasons Why Wells Fargo Bank Stinks

Filed under: FlippinSweetBlog — aaron @ 6:53 pm

We recently refinanced our home to a 15 year loan, and with some luck will have our house paid for by the time the kids move out.  🙂

My loan was purchased by Wells Fargo bank, and had been serviced there for 1+ years.  So far I’ve had these problems, and hopefully you can steer clear of them if possible.  ( or perhaps they can change the way the do business, to give much better service. )

1. They constantly call for upgrades for their services. For instance it is the 6th of January, and I’ve already had 2 phone calls this year, one to sell me mortgage insurance of some kind ( I think ), and the other to do a second mortgage loan.  These are the 2 worst ideas for a home owner.  They call back, even if you ask them not to call anymore.

2.  My local branch office is worthless. We stopped by today to ask some questions about paying extra payments on our loan, and setting up scheduled withdraws, and their loan officer/banker was worthless.  He could only give us a card with an 800 number on it and kept telling us to call it.  Thanks for the great personalized service, I’m glad I stopped by.  He had no idea about service plans, costs, options or anything.

3.  Their 800 number / Call Center / Home Office support stinks. After we left the unfriendly branch office, I called the 800 number.  After only 1 minute on hold, I had this conversation:  ( As best as I could remember )

a – I have a question about my loan, if I pay twice a month, are you going to hold the first payment and combine it with the second, and only apply the funds at the end of the month?  ( Country wide does/did this too, FYI )

wf – Well of course, we cannot apply money mid-month.

a – Why? I paid the money, and I want to reduce my principle, and pay on the interest early, it is a really good idea to get the loan paid off.

wf – I’m sorry, but as you know we can only calculate interest on a loan at the end of the month, it is impossible to calculate values mid-month, or make payment mid-month.

a – What? Are you kidding me?  If I pay principle mid-month, then my loan value goes down, and I will accrue less interest by the end of the month.  I will end up paying off my loan much earlier.   Don’t you have bi-weekly or bi-monthly plans, so people can pay more often?

wf – No we really are unable to apply money that way.  We do have bi-weekly and bi-monthly plans, but we hold all the money and only apply one payment at the end of the month.

a – Well that stinks.

wf – Do you know how difficult it would be to do the math to calculate interest on a daily basis?  This is really complex, you can only pay once a month.

a – Are you kidding me?

wf – No, sorry we cannot help.  If you want we can set up a bi-monthly or bi-weekly payment plan.  You’ll end up paying an extra payment once a year.

a – Thanks for nothing.

wf – Sure, call again if you need more help.

It is too bad that WF cannot hire one kid that took Math 1050 and have him explain how compounding interest works, and that there have been equation for calculating interest ( at any period ) for hundreds of years.   What a drag to have such poor service from my mortgage loan provider.   Perhaps I will call again, and see what other great service I can get from WF…..

4 Comments »

  1. Next time have the interest already calculated, so when they say how difficult it would be give them an example. Te he he. That would be great…. but then again, maybe if they hired mathecistic people like you they could handle such complicated math. Unfortunately I think that most if not all lenders are like that.

    Comment by Camille — January 9, 2010 @ 8:54 am

  2. Why are you trying to pay off cheap money early? The fundamental rule of money is “Buy low, sell high.” The bank is willing to lend at a paltry sum, which the government then kindly subsidizes for you to make the real cost of funds of a mortgage next to zero. Use your money to make money: start a business, buy a company, buy a low-cost index fund.

    Comment by Clark — February 8, 2010 @ 11:26 pm

  3. […] Fargo, the holder of our note for our home, has horrible service. Here is my opinion at the top of the year.  Either way, for the past several days, we have been getting a phone call […]

    Pingback by Wells Fargo Is Still Crappy — August 12, 2010 @ 9:12 pm

  4. […] that in addition to providing piss-poor customer service, Wells Fargo can’t (won’t?) do math. That’s right, nobody in the bizillion-dollar mega-bankster-lair can figure out how to […]

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