Consumer complaint received 2017-11-15
Company: U.S. BANCORP
State: LA
Product: Mortgage
Sub-product: Other type of mortgage
Issue: Trouble during payment process

Complaint:
XXXX XXXX, XXXX entered into a contract with XXXX XXXX XXXX and her bank U.S. Bank. XXXX XXXX 's home sustained flood damage in which her insurance company paid for the repairs and the funds were held by her mortgage company U.S. Bank in their Loss Draft Department to be disbursed to the contractor of record " XXXX XXXX ''. 
XXXX XXXX relinquished all rights to the funds so that U.S. Bank 's Loss Draft Department could pay the contractor directly and signed a direct pay, work authorization and authority to discuss all matters of the loss with U.S. Bank. XXXX XXXX then provided all required documents, Lien waivers and contracts to the Loss Draft Department of U.S. Bank and was approved as the Contractor of record. U.S. Bank released a first draw payable only to XXXX XXXX to start the repairs on X/XX/2017 in the amount of {$40000.00}. Following an inspection by U.S. Bank another draw was released payable only to XXXX XXXX in the amount of {$31000.00} on X/XX/2017. 
According to U.S. Bank a contractor can request a final inspection when 100 % of the structural and 90 % of non-structural are completed. At that point XXXX XXXX requested a final inspection in which U.S. Bank approved 95 % complete and issued a check in the amount of {$22000.00}. We confirmed the Loss Draft Department of U.S. Bank had issued a check made payable only to XXXX XXXX and that the check was mailed. XXXX XXXX received the check as did with the others but instead of contacting XXXX to pick up the check XXXX XXXX noticed a " note '' on the bottom of a letter from U.S. Bank that was attached to our check that stated ; " Contractor ( s ) can be removed from disbursements checks if paid receipt ( s ) are " RECEIVED and VERIFIED '' She then contacted the Loss Draft Department of U.S. Bank and stated that she had paid XXXX XXXX in full and requested the the check be re-issued to her alone. U.S. Bank took XXXX XXXX 's word and a copy of a {$7500.00} check that she had paid to XXXX for the gutting of her home and without doing there due-diligence and VERIFYING with XXXX XXXX that this information was accurate and correct and that XXXX was paid in Full they re-issued the check to XXXX XXXX XXXX. 

After a week had passed and no check was received we contacted U.S. Banks Loss Draft Department and we were informed what they had done, After two days of conversations with the supervisor of the Loss Draft Department of U.S. Bank, we were told they consulted with there legal department and that although they understood that we had not paid in full by XXXX XXXX, and that U.S. Bank was still in possession of {$9200.00} of the insurance proceeds, there was nothing they could do. Then they informed us that they were releasing the remaining balance and they would make sure XXXX 's name was on the check along with XXXX XXXX XXXX 's name. They then stated that they would send the check out immediately and that once that was done they would no longer speak with XXXX XXXX. That is exactly what they did! 
Please find attached all of the documents that were signed by XXXX XXXX and sent to U.S. Bank along with the letter stating that a contractor can be removed.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation