In April, Kathryn Hansen was ordering some new checks from Wells Fargo when the agent on the phone made her an offer. Open a home equity line of credit and you’ll get two free plane tickets to London. That’s easily $1,000 per person, she determined, well worth paying the $275 closing costs for a HELOC, which she was interested in anyway.
Hansen, who lives in St. Paul and works for Target in real estate development, checked with her partner and settled on the dates for the trip, next year. Then she learned the tickets came with a condition: you have to pay for a week’s stay in a hotel. Well, she and her partner were going to have to get a hotel anyway, so that was acceptable. Then came the unacceptable.
When Hansen called to make the reservations, the company handling the promotions informed her that she would have to pay $600 per ticket “for taxes and a surcharge.” Translation: the free tickets would actually cost $1,200.
“It was a real surprise to me,” she said. “I just couldn’t believe what they were telling me.”
Hansen did a little investigation, and managed to get Wells Fargo to fax her something that looked like an internal document about the promotional program, which ran from April to June. On page 2 of the three-page document, there it was: “Two Free Round-Trip Airline tickets to Mexico, Hawaii or London with the purchase of accommodations at a participating hotel for 7 nights.”
When she had the document, Hansen had the goods. She said a Wells Fargo vice president in California called her and it was clear that the executive was perturbed that someone had let this paperwork out of the building. Unlike government, corporate America has the legal right to withhold virtually all of its internal records from public scrutiny.
I contacted Wells Fargo’s communications office on Monday. On Tuesday, Peggy Gunn, a Wells Fargo spokesperson, said she would look into the situation.
This morning, Hansen got a Fedex package from Wells Fargo. Inside were three Visa gift cards totaling $1,250. Later came a call from the executive, apologizing profusely.
Gunn, the spokesperson for Wells Fargo, told me that Hansen was the only customer who had this experience.
“Our folks have been working with her, prior to your call,” she said. “There was just a miscommunication about the details of the offer.”
And that’s all she wanted to say about it.
Hansen isn’t sure she’s going to London, since she’s not thrilled with her choice of hotels. But she does know something: “It pays to look into things. When something’s not right, it’ s not right. You need to pursue it.”
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July 30th, 2008 at 4:47 pm
It just goes to show you that you can’t even trust the bank that you do business at and it is clear that they are out to make a buck regardless of who gets screwed in the process.
July 30th, 2008 at 5:04 pm
just another bank swinddle. robbers go to jail for this. a pathetic example of dealing with a bank. they are rip-off artists. come on Robin Hood get even with the banks.
July 30th, 2008 at 5:19 pm
James,
Great summary and article. I appreciated your help and I am sure the call from the Trib. moved things in the right direction.
The Best To You.
Kathryn
July 30th, 2008 at 5:24 pm
Good to see the strib devoting its precious resources to hard hitting investigative news. Moral: something that’s too good to be true probably is. Thanks Strib, no wonder you’re a failing business.
July 30th, 2008 at 5:24 pm
And people wonder how the mortgage crisis got so out of control…
July 30th, 2008 at 5:44 pm
It seems like the Wells Corporate Drones didn’t have an operations manual to cover such a possibility — it’s a lousy offer anyway. Lesson - “Nothings ever really Free” !!! Great publicity !!!
July 30th, 2008 at 6:01 pm
Ummm… I thought that any ‘prize’ over $600 was taxed at something like 41%. How are these free tickets any different?
July 30th, 2008 at 6:18 pm
It wasn’t a prize- it was a free gift for opening the line of credit (and spending $250 to do so). Splitting hairs maybe, and maybe the IRS will see it as a prize at the end of the year, but I think a gift in return for some costly action is different from winning something in a cheap game of chance
July 30th, 2008 at 6:45 pm
I am glad that Ms. Hansen was able to get this resolved.
Since no other cases of this have been reported, is it possible that this was an internal mistake?
It sounds like the situation has been resolved.
According to your blog, this forum is supposed to be about,”Your destination for righting wrongs, uncovering injustices big and small and holding people, companies and government accountable”.
How does this situation apply?
July 30th, 2008 at 6:47 pm
It’s really pretty disgusting that a big company like Wells Fargo feels the need to stoop to this kind of promotion. (a scam really) Didn’t they used to make billions before the mortgage “crisis” that they probably helped to create? Isn’t that enough? The lady wanted checks, not a scam. Congratulations, Wells Fargo on a scam well done!!