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Wells Fargo Auto Finance / bad auto loan (re-finance)

1 Cropwell, AL, United States Review updated:

After reading several complaints posted, I felt compelled to add another chapter to "The Saga of Wells Fargo". I too, had the "no insurance" thing with Wells Fargo. I purchased my vehicle in May of 2006, unbeknowing to me that the financing was through Wells Fargo, at a decent, but not great interest rate. Anyway, I paid each payment on time from June through December, but apparently had made the fatal error of changing insurance carriers in August. I received notice from Wells Fargo and responded by having the new insurance carrier fax yet another copy of the proof of coverage to them. But alas, it was too late. They had already billed the account for insurance. Like all the other complaints I've read, I was the receipient of numerous daily calls from them. I would let it ring through until I was totally "ill" and then answered the call. I argued with countless collection agents, even pointing out that according to the on-line payment history I had 8 payments due on the account since opening, and had made 8 payments. How could I be behind? FINALLY, one of them said that my payment had been re-routed to cover the insurance!!! They had taken TWO of my payments and posted it to insurance!!! It took like two months, but finally they got everything reversed and corrected. I even called an attorney that I once worked for about it, and was advised that I should just pay the extra two months and go on...that's how concerned lawyers are over our plight. I, of course, did NOT send money I did not owe, but just kept on and on til I finally got it fixed. And it did finally did, but, just like the other complaints stated, nobody ever offered anything resembling an apology. I finally had gotten through to some "supervisor" who actually knew what he was looking at...seems that the NEW insurance declaration had been received, THEN the old insurance sent a cancellation. They posted the new policy, then showed lapse when the old policy expired...WHOEVER entered the information did not bother to READ the documents. GOOD LORD HELP US!!! I guess these poor folks who went to work for Wells Fargo were really desperate for a know as well as I do, that these people calling us are only common folks like the rest of us, trying to etch out a living for their family, and Wells Fargo had hired any and all comers, regardless of their academic skills...

THAT, my friends is the "good story". The next one is not so good. I've read a lot of complaints concerning Wells Fargo's home mortgage "predatory" practices, but haven't read a lot on the auto financing end of it. I will say at the on-set of this story, that Wells Fargo is not the only one doing this. We had a similar experience with AmSouth Bank some years ago. We didn't understand it then, and don't now. Okay, here goes. When you apply for an automobile loan at your bank, they have a book, a guide, as to the approximate value of the vehicle, right?! And the bank, if operating according to Federal Banking Rules, would require that the loan amount be within these guidelines???? WRONG. Apparently some financial institutions will finance any deal an auto dealer can write.
We had a vehicle loan we co-signed with our grown son, who then had an accident on his 4-wheeler and was initially told by the doctor that he had fractured his ankle and would need surgery and would be off work for two months (without pay). At that same time, Wells Fargo was calling me once a month trying to "sell" me some money. I repeatedly told them I wasn't interested and to take me off their calling list, but they did not. So, after the accident, they called again, and we discussed the situation with them. They more than gladly did the deal, re-financed the truck, again with two signatures. They actually put my husband's name on the loan ahead of our son's (WRONG) because it's his vehicle, not ours, and when we questioned them about it they said because the son was off work at the time, it had to be this way. Wells Fargo then overextended the financing, causing us to be upside down in the vehicle. They DID NOT advise us that this was the case. They did not do an appraisal on the vehicle or anything. So...we did not realize what the vehicle was actually worth, and put our financial security in jeopardy. Their interest rate came in at 14.99 and is calculated in such a way that even now, after 20 months of payments, the interest is still over 300 a month. At this rate the loan will NEVER pay out!!! After 20 months, we've paid over 14 thousand dollars in payments, but the principle balance has only been reduced about 4K!!! Ten thousand dollars interest in 20 months!!! Let's all go open us up a loan store!!!
The real point to this story is this. When our son took the truck to a dealer thinking about a trade, he was in for a huge shock. His truck is worth about 15K LESS than he owes on it!!! How can that be?????????????? He cannot trade or sell the vehicle (which he needs to now to drive something more economical) without the situation only getting worse. His work situation has changed, and he does not make nearly as much now. He cannot make the ridiculous payments (which are over 700$ per month), so it looks like we're in for a long ride. What a dilema. If we return the vehicle, Wells Fargo will simply sue my guys, obtain a judgement in Court and proceed to levy wage garnishments, "discover" other assets, such as our retirement accounts, and send a Writ of Execution to the banks and seize these funds as well until, by THEIR definition, the debt is paid in full. This of course will be about twice what the loan amount is for, since they will add all sorts of legal fees, etc. to the total. A wage garnishment will be issued for both parties who signed the loan, for the full amount of the debt, not half to each one. That will hit my husband's pay check for about a thousand dollars take home pay each month, and my son for about 500.
SO...all you folks out there, PLEASE DO NOT RE-FINANCE YOUR VEHICLE WITH WELLS FARGO. They are not truthful in disclosure. They are PREDATORS. I cannot believe that President Obama's team of experts haven't uncovered this practice and put a stop to it. Nor can I believe that Wells Fargo deserved or needed any BAIL OUT. It is the CONSUMER who needs a bailout!!! How about making some funds available to the little guys who have been scammed by Wells Fargo instead??!!!
Thanks for reading.

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  • Us
      21st of Oct, 2009

    I TOO HAVE REFINANCED THROUGH WELLS FARGO AND AM SERIOUSLY REGRETFUL! Wells fargo offered to refinance my car in order for me to get my husband a measely $2500.00 loan for a work truck. Told me that was my only option to get a loan. They also offered to give me a lower interest rate, which sounded great considering I was paying over 18% at the time. So I went ahead & refinanced, what a freakin mistake that was. I had to give up my gap insurance in order for them to refinance me because they do not offer gap insurance. My payment was slightly reduced & they lowered my interest rate to 16.4%, told me I could refinance it again after making several on time payments to get a better rate. Everything sounded great, got my husband his money for work truck, got my interest rate lowered, reduced my monthly payment. Well after about a year of on time, paying more than my minimum payment, I find out that my car does not qualify for refinancing because I owe more than the car is worth. SURPRISE!!! They sure as hell didn't have a problem adding the $2500.00 on to the balance of my previous loan that they refinanced for me, & I know damn well that adding on $2500.00 to my existing loan would have put my balance due at a much higher total than what my car was blue booked at at that time! Not only that but I realize that they financed me for 72 mos.! Who in the hell wants to pay on a used vehicle for 6yrs? That's after I had already paid on it for a year before the big mistake of trusting wells fargo auto. So basically it boils down to this, they took complete & total advantage of my desperate situation & trapped me in this high interest rate loan for 6 freakin yrs so that by the time I get done paying for my car I will have paid more than what the car sold for brand new in 2004! My car has low miles for the year that it is which is the only thing that might help me at this point. So, I can't refinance because I owe too much money because they totally screwed me over, I can't sell the car unless I come up with the difference from the cars value & what I owe them in order to get the title, I can't have someone burn the SOB because I no longer have gap insurance to cover the difference, I can't intentionally total it because my insurance will only pay blue book & at that point I don't think the low miles mean ###, & worst of all I can't even drive it because I need to keep the miles down since that is my only savior in this whole f...d up scenario! WHATEVER YOU DO, DO NOT TRUST WELLS FARGO AUTO FINANCE!!! THEY ARE FLESH EATING SHARKS THAT HAVE ABSOLUTELY NO CONCERN FOR THE CONSUMER!!! ONCE THEY GET YOU TO TAKE THE BAIT, THEY"LL GUT YOU RIGHT THERE & YOU WONT KNOW WHAT HIT YA!!!

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  • Jj
      17th of Mar, 2010

    Did you read what you were signing? I always read what I am signing, so I don't get ###ed over or feel like an idiot if I borrow a bunch of money and then complain that I didn't understand the terms. Rediculous.

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