Wells Fargo issues with Western Union checks (Long Story)

[AzCreditGuy]

So, I have been pretty happy with Wells Fargos for a while now, even with all the news of them getting fined every year for shady stuff they do.

I have a rental client that usually sends me her monthly payments through Venmo, but for Dec she gave me 2 western union money order checks that she paid for at a local grocery store. The 2 checks were for the same amounts that equaled the monthly rent.

I tried to deposit the 2 checks through my mobile app, as I have done before with any checks I get and I always keep the check(s) in case any issues arise.

Anyways it took the 1st deposit through the mobile app and the second check it was erroring out, I assumed because both checks where the same amount, the system thought I was duplicating the mobile deposit. I ended up driving to Wells Fargo to deposit the check through the ATM.

I thought everything was ok until, I looked at my rental account and saw that the account was negative. It seems Wells Fargo labeled my 2 deposits as “fictious/fraud” and instead of crediting me the amount, they removed the amount in question. Later that day they realized the mistake and made my rental account whole again.

They still did not honor the western checks and sent a letter that they were “fictious/fraud” and that I would need to go back to the issuer and see what they could do. Since I still had 1 Western Union check, I went down to the local grocery store where they bought and they cashed this check for me.

The second check that was deposited in Wells Fargo, was returned to me as a photo copy check. In a letter that they stated that the check was legal and could be used to cash it out.

The grocery store refused to cash the check and stated, we don’t accept photo copies. My other Bank US Bank stated, if I had tried to cash the photo copy check, they would have closed my account for fraud.

I have had to get my legal involved in the matter and files complaints with the CFPB (POINTLESS) and the Controller of Currency, because of what Wells Fargo’s has done.

Has anyone else experienced this? 

[FinStar]

Western Union checks? Or, money orders?

My understanding is that WU doesn't issue official checks, but rather money orders through participating retailers. Financial institutions treat MO instruments a little  differently than standard checks, official checks, cashiers check, etc.

That said, if you have your legal entourage involved hopefully they can seek remedy on your  issue.

[Anonymous]

You have received much information.

Will add that some of my bank's review each and every Mobile Deposit. While they push the option for some of us, they have proven to be very judicious in their approvals.

In my case I am comparing a small local bank and a nationwide bank. Talked to the banks on legitimate mobile deposits (from where I sat) and they still flagged them for review.

When talking with them, they informed me they see some very unusual transactions and need to be very deliberate in what they approve.

Your situation could certainly appear as a question?

[AzCreditGuy]

Yes I meant money orders.....

Wells totally screwed this up and I am thinking of going back to B of A (I know no better) but I am not looking for any credit soon as I am in the garden.

I forgot to add that US BANK would not write me a letter or go on record that they would not accept the photo copied money order and that they would close my account, which I found shady. Even the Banker that I talked stated, someone is messing with you at Wells

[NoMoreE46]

Bad luck.  Sorry. 

Typically, Money Orders from any institution be it Western Union are ripe with fraud.   Most banks today, and you noted two big ones along with most CUs are reluctant to accept any m.o. at all.   Consider yourself lucky that the first got through.  

The best recourse is to ask your Tenant to go back to that Grocery store with Western Union to ultimately have WU issue a replacement m.o. 

This won't be a quick thing and may take weeks.  Tenant will probably need to fill out paperwork declaring that the 2nd m.o. has been "destroyed or lost."  Technically, it was neither but this is probably an acceptable/normal reason(s) for WU to proceed.  

WU will of course investigate the status of this 2nd m.o.   Whenever they do confirm that the 2nd  m.o (confiscated by WF is Lost ) has not been cashed, WU should then be willing to issue a 3rd.   I am guessing the replacement has to mailed to the tenant and will not be issued in store.   In addition to taking # of weeks, there will probably be service fees to do this.

Might I suggest that you look into a rental management firm to handle your rental?   Legal is probably a waste of time for this and definately will cost you more money.  We pay a decent rental management fee and while it does cut into our income, I don't have to do much other than wait for an email saying the net rent is coming via DD tomorrow.

Good luck.

[UncleB]

I'm not making excuses for WF, but I suspect had you deposited the money orders at an ATM or with a teller they would have been processed with no drama.  I've never heard of Wells Fargo being too picky with money orders deposited via physical means.

Fraud seems to be big with money orders and mobile deposits.  MoneyGram money orders are now even pre-endorsed with "Mobile Deposit Prohibited." 

https://milestomemories.com/moneygram-money-orders/ 

Hopefully your attorney will be able to help get the issue quickly resolved.