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Has anyone ever heard of this happening? Wells Fargo denied a student loan application, then 6 months later sent a letter saying they made an error and offered either the loan at a lower interest rate or offered a courtesy payment of over $4,000.

I thought this was a scam, but the phone number on the letter to call verifies out as the phone number on Wells Fargo's website. They also asked only for verification of address (which was on the letter) and name to send out a payment by check.

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Well I dont know about race or sex but I am a Caucasian female.

Either way they said they calculated something wrong and ... (more)

x0babushkah0 (Dec. 12, 2013 @ 2:14p) |

Heard back from the firm I contacted. This is the email they sent me:
 
 
"Dear Mr. Cyr:
 
After a careful analysis of your c... (more)

MeatMan13 (Dec. 14, 2013 @ 10:01a) |

Sorry for never posting back an update sooner. I got the check, deposited it, and the funds cleared. This was a couple w... (more)

xSTRIKEx6864 (Dec. 21, 2013 @ 9:11p) |


What are the details of the loan? Amount/interest rate?

Even if it's not a scam, that $4k could easily be baked into the loan.

Do you have recourse here? Are they afraid of a lawsuit & are offering $4K for you to not make trouble?

I was involved in a case where a large bank voluntarily offered to pay around $5K to a loan applicant for (it turned out later) a release against illegally reporting various items on his credit report.

Consumer got a lawyer and sued. Settlement was around $40K. Plus, of course, clearing up credit report.

If this happened to me I'd be on NACA.net looking for a consumer credit specialist lawyer in my area to call.

I bet if there was an error it applies to a lot of folks. I've had a WF CC (unused for years) so I thought I'd apply for a student loan with them back in Feb. But the site said I needed a cosigner to proceed. It was unreal since I have 750+ FICO and a perfect lengthy history. I then applied at Discover and got approved for the same amount at 5.25%, and did it again later. Class action???

I have also received one of these letters recently. The three options they provided was a student loan up to $40000 at 2.5% variable or 5.74 fixed, a personal loan up to $40000 at 5.74% fixed, or a one time courtesy payment of $12040 "because we should have approved your original loan application and this is offered as a courtesy." I can't verify if the number (877-449-2434) is a valid wellsfargo number or not. Any ideas?

mellon109 said:   I have also received one of these letters recently. The three options they provided was a student loan up to $40000 at 2.5% variable or 5.74 fixed, a personal loan up to $40000 at 5.74% fixed, or a one time courtesy payment of $12040 "because we should have approved your original loan application and this is offered as a courtesy." I can't verify if the number (877-449-2434) is a valid wellsfargo number or not. Any ideas?
  
Holy sh!t - I know everyone would say to pursue legal advice but getting a letter saying you're getting a $12k payment would make my day. 

Seems like a good time to go into a branch and talk to the manager

Wells Fargo suddenly receives a massive influx of student loan applications, can't figure out why.

I just received the same call yesterday. What are you all doing about it? My letter states something about removing information from my cosignors report as well. I never got the loan and they are admitting error. I am thinking this has to do with incorrect credit reporting practice. I think I will take the letter to a branch and ask them what it means, then pursue the services of a lawyer. When I was denied my credit rating was over 800 and so was my cosignors.

Cashman said:   Holy sh!t - I know everyone would say to pursue legal advice but getting a letter saying you're getting a $12k payment would make my day. 
  
Only on FW does one get an offer for a $12k free payment and go storming off to their lawyer to sue for more when they had no idea anything was wrong before the offer of payment.
 

Holy sh!t - I know everyone would say to pursue legal advice but getting a letter saying you're getting a $12k payment would make my day.

If they are willing to give away 12k unsolicited, they are probably willing to part with 50k under some duress.

Only on FW does one get an offer for a $12k free payment and go storming off to their lawyer to sue for more when they had no idea anything was wrong before the offer of payment.

Hey, why pass on an additional 40-50k?

Vipercon, you should look at the Deceptive Trade Practice Act. The letter I got stated issues with credit reporting, however my phone call, which pre-empted the letter stated nothing regarding credit reporting, just that I was falsely denied credit. The wording of the letter is misleading, and this is why I am seeking legal counsel. A 12k free payment is not free if a detriment is done to your credit report, or am I incorrect in the fact that a false denial of credit can affect my future creditworthiness? A BTW, you have to pay taxes on that 12k if that is what you accept, in the form of a 1099, so it is not a free payment.

I received the same phone call stating that my student loan application was incorrectly processed, and they are going to send a courtesy check for 1,800 dollars. You should keep in mind that you can never trick an honest man, something that is too good to be true usually isn't. Wells Fargo denied loan applications simply go into a closed file for 4 years until they are destroyed, there is no reason why they would open a closed file for a denied loan application. Phishing plays out in many ways, as long as you don't provide any personal information they can't do too much with a phone number and an address. If you are still concerned contact Equifax or one of the other two credit monitoring agencies. When you notify one agency they are required to notify the other 2. Equifax is 888-766-0008.

Best of luck.

Phishing about student loans from one bank seems like an awfully specific and ineffecient tactic. I mean, what % of people applied for a student loan from Wells Fargo in the last 5 years? 1%?

mellon109 said:   I have also received one of these letters recently. The three options they provided was a student loan up to $40000 at 2.5% variable or 5.74 fixed, a personal loan up to $40000 at 5.74% fixed, or a one time courtesy payment of $12040 "because we should have approved your original loan application and this is offered as a courtesy." I can't verify if the number (877-449-2434) is a valid wellsfargo number or not. Any ideas?
  
Sounds like a scam. Most will go for the free money which seems too good to be true.  No way Wells just does this without attorneys or government forcing them to. ,Has their been anything in the news about this?

I made a few phone calls. First I called wellsfargo from a number on their website. I talked to a loan rep who had no clue what I was talking about. She couldn't verify that the number on the letter was a valid wellsfargo number and suggested that I disregard the letter. So at this point I was satisfied that this was some kind if scam until 2 days later when I received a voicemail from wellsfargo (from a number I googled and discovered that it was a number that wf often uses for collections type calls) that referenced my call 2 days earlier and said that the rep had given me some incorrect information and that should return their call at the same number that was given in the original letter. So I called that number and spoke to a rep who verified everything in the original letter. I told him that I would need to consider my options. Also, it doesn't seem to be random because the letter referenced a loan application number that I was able to verify with wellsfargo. Currently I'm waiting to hear back from an attorney.

Man this is odd. Sounds like some sort of 'timeshare' like offer.

Example - if you want the money they keep you on the phone and you have to listen to sales pitch after sales pitch by multiple people offering you everything from loans to debt consolidation. You will get the $, but they bake that back into your loan. You have to go through multiple levels to get your money.

or

When / if you take the cash, they make you open up an account and apply for a credit card and have to maintain the 4k bank act balance for 6 months etc. They may hope you rack up debt on the CC thinking you have the $ in the account to cover the balance, but you can't touch the balance for months while the CC racks up tons of interest for that time at some usury rate.

After calling the main Wells Fargo number and being transferred through 5 different departments I finally got on the phone with the guy that is coordinating this whole thing. Indeed Wells Fargo made a huge mistake and is being forced to offer these 3 options including a courtesy payment, the only question is could you seek legal action against Wells Fargo and get more money from them than the "courtesy payment" which is probably to minimum they have to pay out customers that were incorrectly denied loan applications?

Any thoughts?

What I don't understand is how they are coming up with the numbers for these courtesy payments. Mine was for 12000 but some of the other people on here were offered 4000 or so. Do you think it's even worth the trouble of getting a lawyer involved?

It's computed from the original loan amount, then the amount of interest accrued from the date the loan was originally supposed to be dispersed until now.

Wishing I had applied to WF back a few years ago. Oh well

This sounds like a scam. People realize caller ID can be spoofed, right?

alamo11 said:   This sounds like a scam. People realize caller ID can be spoofed, right?
  What could the scam be? All they are asking for is an address ( which they obviously have since they sent a letter to that very same address) and a name ( again they obviously have this). OP gets the check and then cashes it at a Wells Fargo branch. End of story. 

Okay guys, first post here after first hearing of this website during my research yesterday on this topic. My story goes like this: A few weeks ago I get the letter from WF in the mail, it says something about a student loan I once applied for and I was eligible for it now because of a mistake...I'm no longer interested in the loan so I ripped it up and tossed it. On 11/8/13 I got a call at 10:17am from (605)575-5010, which shows up on my phone as a Sioux Falls, SD phone number. It was a lady that said she was with WF and asked if I got the letter. She was very careful in telling me that "this call may be monitored or recorded", she then started talking about the student loan that I applied for and there may now be options for me... I was busy at work, and again, am no longer interested in the student loan so I was short and eventually hung up. Then again yesterday afternoon at 4:45pm I got a call from the same number. It was a man this time who seemed to know I talked to the lady before and he had to know the gist of what our conversation went like just from the things he knew and his determination to keep me on the phone. He again asks if I got the letter, then tells me very clearly "this call may be monitored or recorded", then asks if I read the entire letter. I told him I pitched it and he then explained that I should have been approved for my load when I applied but was denied because of a mistake in their process during the time...(I applied for the same loan at multiple other banks and was also turned down, I was a 19 yr old kid asking for $25k/yr). He said I could either get the same student loan at a certain rate (don't remember what), get a personal load of x amount at x rate (don't remember), or I could accept their "courtesy check" in the amount of $2600.xx (something like that, can't remember exactly) because "Wells Fargo made a mistake and we want to make it right, that's not the way we conduct business". I (in a round about way) said to send me the check. He asked for my updated address, because I have moved recently but they did have my old address and all other info correct without me mentioning anything. He said he is going to send me the letter again and the check, the check will probably beat the letter.

What are you guys doing with yours? should I call a lawyer?

Sorry that was so long winded, I tried to be concise. It if makes any difference I applied for the loan in 2010, and the guy that I talked to mentioned that.

Thanks guys

Quick update on this: I recently moved and the check apparently was sent out to my OLD address but these will not get forwarded by USPS. After two weeks, I had no check so I called back to give my new address and it looks like the one that was sent they'll be doing a stop payment and issuing a new check.

If I get the check, I plan to simply deposit it and wait for it to clear before moving the money into a CD or something.
 

I got a similar call and received a check. Anyone ever figure out what this could be? Seems fishy

Can't believe that no Fwer has called up a student loan or consumer credit specialist attorney yet to get some professional guidance. I note that no bank on earth pays out four thousand bucks to a loan applicant unless they are very, very worried. Or, unless they are getting pressure from a regulator such as Consumer Financial Protection Bureau (which has been going after student loan abuses--of which there are many).

I repeat what I mentioned above. Go on naca.net, find a student loan or consumer credit specialist in your state and call 'em up to see what they think.

You are likely to end up with a whole lot more than $4K.

Hey guys,

I too got one of these letters and phone calls. Loan was for 9k and they offered me $890. Spoke to my lawyer and he cannot handle it because it is financial law, he is certain that they did something VERY wrong if they are offering us money free and clear. What are you guys hearing on the legal end of this? My lawyer recommended getting together with y'all for a class action.

zimma13 said:   Wishing I had applied to WF back a few years ago. Oh well
  Wishing they had denied me! I did have to get a cosigner and had a rather exorbitant rate, so fingers crossed.

I'm curious too.. what did they do that is so bad that they're offering free cash?  Worth looking into...
 

Wondering to myself how many people here suspiciously eyeing the free money being offered here will also complain about the hefty fees lawyers extract from the class action lawsuit.

Interesting. As a data point: my fiancee had many WF student loans since 2004. We have since consolidated into one loan. She has not received any letter at our current address or at her father's address (where she lived when she got the loans).

But a class action for what. I have no idea what theybdid wrong which. Other interesting thing is that on the check we recieved there is not legal at all releasing them from anything. Figured there would be if they were trying to buy me out of a class action.

Guys no bank would just give out tens of thousands of dollars to loan applicants unless they did something seriously wrong. They are offering this to us right now because it is right before the holidays. They are expecting us to not think about it too much and take the money because hey, we could all use some extra cash right now right? If they just offered loan options that is one thing. They would not offer cash unless they were afraid. Has anyone contacted a lawyer yet? I am in Chicago trying to find someone but haven't heard back from anyone I have reached out to. My go-to lawyer is a criminal lawyer so he can't really help but he knows enough to confidently say DO NOT take anything from them. Find a good lawyer, team up with the other people you have found if they are interested (he was referring to you guys), and go after WF. They are liable for everything that has hit your credit report since the loan denial. Thoughts guys? We need to move on this...

I received the same letter, which I discarded and didn't give a second thought to until WF called me yesterday. The voicemail they left on my phone sounded panicked and the woman was practically begging me to call back, assuring me that it was not a solicitation or collection attempt (my first thought was "your darn right it's not a collection... I don't owe WF a DIME"). Regardless, I called the number actually to ask them to take me off whatever call list I was on as I despise calls like these. But I listened as the man started talking about my loan denial in May of 2010. He said that it was a mistake and they know it was an inconvenience and could have costed someone their college education (perhaps that's part of their legal fears?). I asked him what the catch was because seriously... no one wants to just write me a check for $6,200 for no reason. He said no catch, they just wanted to rectify their mistake. I asked if I was obligated to WF in anyway (repayment or whatever) and he said no, it's a courtesy check. He said that he could send it and if I didn't want to deposit it, that was my choice. It's funny reading the post from the person on 12/5 about the holidays coming up so hope we'll just take it. The man on the phone said EXACTLY THAT "hey the holidays are almost here, you could use it for presents!" I'm not an idiot. No one wants to just hand over that much money unless they seriously screwed up... so I called two lawyers. One hasn't yet returned my call yet but the local lawyer in my small, Nebraska town said that it sounds like WF made a big mistake. He said we could probably go the class action route but would most likely end up in litigation for a long time and our lawyers would make more than anyone, with a risk of getting nothing. He told me to bring the check and letter by his office so he could take a look at it before I decide on anything. I'll be pulling my 3-bureau credit report later today to make sure nothing is amiss. Anyone else have any updates?

I have submitted that letter they sent us and my denial letter for the original loan to a law firm here in chicago. I sent an email just asking what I should do to the basic info email address they had... The primary partner of the law firm, the guy whos name is first on the title, responded to me asking for the documents and he will review free of charge. This was last night about 1600 so I havet heard anything back yet. My first thought is that WF will not let this go to court. We will settle outside of court. No bank would risk losing this kind of thing. It would haunt their name for a very long time. I will let you know when I hear back from the lawyers.

The big disparity between the awards is what I find interesting. Those who were offered less money should try to negotiate for a higher award using the numbers on this thread. I personally would argue that just because my loan request was less doesn't mean that I was harmed less than other borrowers. If you try this, please report back.

Skipping 11 Messages...
Sorry for never posting back an update sooner. I got the check, deposited it, and the funds cleared. This was a couple weeks ago.



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