How to Settle Credit Card Debt with Wells Fargo

Edited by Hannah Locklear

Wells Fargo is one of the largest banks in the U.S. It offers various financial services, including traditional banking, investment advisory, credit cards, and loans. The company opened in 1852 in response to the California Gold Rush, where a growing population required banking and express mail services.

Since its inception, Wells Fargo has grown exponentially. Various mergers and acquisitions of other financial service companies allowed it to expand its reach nationwide. The company has branches in nearly every state except for a few standouts, including Michigan and Ohio.

Millions of customers use Wells Fargo for their financial needs, and many have credit cards, personal loans, or mortgages with the company. However, people who face financial difficulty may find that they can’t meet their minimum payments with their loans.

Let’s talk about potential solutions for managing your Wells Fargo debt.

Save on interest charges with Wells Fargo

Your interest rate on your credit card or personal loan with Wells Fargo is primarily determined by your credit score when you first took on the obligation. Your interest rate is likely pretty high if you have fair or poor credit.

Those with good credit may have received a low introductory rate on their loan but experienced higher interest after the initial period ended. Whatever your situation, Wells Fargo may charge you a fair amount of interest on your outstanding balance.

To trim the amount of interest you pay to Wells Fargo and reduce the value of your obligation, you’ll need to start paying more than the minimum payment each month.

Take a holistic look at your current financial situation and see where you could redirect some of your spending to your credit card debt. You'll significantly reduce your outstanding balance if you can double or triple your monthly payment to Wells Fargo.

You’ll also see a shift in the amount of interest you pay to Wells Fargo. More of your money will go toward your balance than to financing fees.

Should I consider consolidating my debt with Wells Fargo?

Debt consolidation is an excellent way to reduce interest expenses and your repayment time, but you’ll want to carefully consider your financial situation before consolidating debt.

There are two standard methods of debt consolidation. You can take out a dedicated debt consolidation loan or look for a balance transfer credit card with 0% interest.

Both debt consolidation methods require a decent credit score of at least 650. Debt consolidation probably won't work if your credit is currently in the tank.

A debt consolidation loan allows you to repay your creditors, including Wells Fargo, in one fell swoop. Once the lender transfers the money to your creditors, your balance will go to zero. However, you’ll still be responsible for paying a monthly payment to the loan provider until you fully repay your balance.

A balance transfer credit card is best for individuals with a high-interest loan with Wells Fargo. You use the credit card to pay off your debt, then make monthly repayments to your new lender. You’ll save lots of money on interest and fees, especially if you pay off the balance within the 0% interest window.

Settle your debt with Wells Fargo before going to court

If you’ve fallen severely behind on your payments, Wells Fargo may sue you to obtain a judgment that allows them to garnish your wages or freeze your bank account. You want to avoid a judgment if at all possible. You can attempt to settle your debt with the company before your court date, which will stop further legal action against you.

To settle a debt with Wells Fargo before your court date, follow these three steps:

1. Respond to the lawsuit.
2. Send a settlement offer.
3. Get the settlement agreement in writing.

Below, we’ll take a closer look at each of these steps. You can also learn more by watching this video:

1. Respond to the lawsuit

Start the settlement process by responding to the Wells Fargo Complaint with an Answer. In your Answer, you should address each of Wells Fargo’s accusations against you. You’ll want to remain truthful but considerate of your legal rights.

For instance, if you believe the statute of limitations has passed for Wells Fargo to collect on the loan, you can indicate your objection in the Answer. Other possible defenses include identity theft or incorrect jurisdiction.

Even though you intend to settle the debt before your court date, filing an Answer protects you from a default judgment. It just buys you time to work out a settlement agreement. If Wells Fargo refuses to settle, you can still go to court to defend your rights if you can't reach a settlement agreement.

2. Send a settlement offer.

Start the settlement negotiation process by determining what you can pay to Wells Fargo to settle your debt. Remember that Wells Fargo may be in an excellent position to win its case, so you’ll want to start the negotiation with a fair offer (consider a minimum offer of 60%).

Next, you should do some research into your type of debt and Wells Fargo’s settlement history. Consider the following questions:

• Is the debt a signed promissory note or book account?
• Is there a meritorious defense?
• Are there any offsets?
• Is the debt interest bearing?
• Is there a valid fee-shifting provision connected to the debt? A fee-shifting provision requires the borrower to pay the cost of collection.
• When was the last payment on the debt?
• Is the debt owned by the original creditor or has it been assigned to someone else?
• Is the debt part of a federal or state loan program or is it a private loan?
• Is the debt secured credit?
• Is the debt dischargeable in bankruptcy? Is it a student loan?

The answers to these questions will help you understand what a fair offer might be. After you’ve calculated how much you can afford to pay and determined how much Wells Fargo is likely to accept, send an offer. Your initial offer may sound something like:

“I see you’re suing me for [$___] for [case number]. I don’t have that kind of money and I don’t agree with the amount. But I do have [$___] that I can pay within 30 days to settle the debt in full. Let me know if you accept.”

Sit back and wait for a response from Wells Fargo. The bank may need a few days to consider your agreement and determine whether it wants to make a counteroffer.

If Wells Fargo counteroffers with an amount you can’t afford, it’s okay to explain your financial situation. Sometimes, Wells Fargo will be more willing to accept your offer if it understands why you can’t afford more.

3. Get the settlement agreement in writing

Once you have reached an agreement with Wells Fargo, be sure to get all the details in writing. When consumers settle a debt with Wells Fargo, the bank will usually draft a debt settlement agreement to ensure you hold up your end of the bargain.

Here’s a debt settlement agreement example with a preview attached below, so you know what to look for:

Negotiating a debt settlement can be scary, especially if you’re facing a lawsuit. SoloSettle can handle the process for you, so you don’t have to battle with Wells Fargo on your own. Our solution includes negotiation and payment processing, which can tremendously benefit people who want to avoid the stress of debt settlement.

SoloSettle can help you settle your Wells Fargo debt

SoloSettle, powered by Solosuit, is a tech-based approach to debt settlement. Our software sends and receives debt settlement offers on your behalf and helps you negotiate the best deal for your circumstance. Once an agreement is reached, SoloSettle helps you manage the debt settlement agreement documentation and forwards your payment to Wells Fargo for you, helping you protect your personal financial information.

Check out this review from a real SoloSettle customer:

“I'm very thankful for SoloSettle. Having a third party negotiate the settlement was instrumental in resolving this case and saved me from two giant headaches: 1) I didn't have to deal with the plaintiff's lawyer and 2) I didn't have to go to court. I also love that the payment was processed through SoloSettle. I was nervous about sharing my personal financial data with the other side, but SoloSettle protected that for me. I hope I never get sued again, but if I do, I would use SoloSettle again in a heartbeat.”

Now, let’s look at an example of how to settle a debt with Wells Fargo.

What is SoloSuit?

SoloSuit makes it easy to fight debt collectors.

You can use SoloSuit to respond to a debt lawsuit, to send letters to collectors, and even to settle a debt.

SoloSuit's Answer service is a step-by-step web-app that asks you all the necessary questions to complete your Answer. Upon completion, we'll have an attorney review your document and we'll file it for you.

>>Read the FastCompany article: Debt Lawsuits Are Complicated: This Website Makes Them Simpler To Navigate

>>Read the NPR story on SoloSuit. (We can help you in all 50 states.)

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