Consumer complaint received 2017-12-21
Company: U.S. BANCORP
State: CA
Product: Checking or savings account
Sub-product: Checking account
Issue: Problem caused by your funds being low
Sub-issue: Overdrafts and overdraft fees

Complaint:
XX/XX/XXXX I visited US Bank Branch in XXXX, CA. I told the teller I was trying to rebuild my credit. The teller said I can sign up for a Secured Credit Card, but I would need a checking account to fund the Secured Card, so he signed me up through his computer in 10 minutes. He did not go over any of the terms of the account. I provided {$900.00} for the checking account. I did not ask for Savings account, but they advised me to add one with {$50.00} balance. He had me fill out a Secured Credit Card application form and I provided {$500.00} cash for the deposit. 

He provided me a temporary checking card before I left. 

I proceeded to use my card normally for daily expenses such as gas, food, etc. 

XX/XX/XXXXI attended a hockey game and attempted to use my card to buy food. The employee said my card was declined. I tried to use my secured card and he said that was declined also. Embarrassingly I had to exit the line. I called the XXXX number on my card and it said my balance was negative {$400.00}. I was shocked. 

Before this day, I never received an email warning me of a low balance or negative balance. I never received a phone call warning me of a low balance or negative balance. 

When I arrived home I checked my statement online and it showed my account had been overdrawn since XX/XX/XXXX, which was 12 days earlier. FromXX/XX/XXXX throughXX/XX/XXXX my card continued to work normally, while I was unknowingly incurring overdraft fees. 

My statement showed a total of 17 overdraft fees between XX/XX/XXXXand XX/XX/XXXXbefore my card was finally declined. 

XXXX I visited the US BANK branch in XXXX to speak to them of the problem. The same teller that signed up my account told me the manager was on vacation so he could not do anything until she returned. He said he would email her and call me back the next day with an update. 

XXXX I did not receive a call back as promised XXXX I still did not receive a call back. I called the branch again asking why I have not received any updates, and the teller said the manager was still on vacation. 

XXXX I called the XXXX number to complain. They said they could not do anything to help me because my account was too new. They said my home branch was the only place that could help me. I explained they were not helping me but they did nothing. 

XX/XX/XXXX I still have not received any call back from my main branch. I called the XXXX number to complain again. They said they would reverse 2 charges, and the rest would have to be done by my main branch. They connected me to my main branch thru the phone. The teller at my main branch was extremely rude and said " Why are you just calling us now if this has been ongoing? '' I explained to him that I have been trying to fix this for weeks, and they have n't done anything to help. He told me the manager was back from vacation and she would call me the next day. 

XX/XX/XXXX I did not receive a call back from the branch manager as promised. 

XX/XX/XXXX - US BANK collections called me to pay the negative balance, caused by THEIR FEES. I explained the situation and she said she would have their manager call me within 24 hours. 

XX/XX/XXXX US Bank charged me an " Extended Overdraft Fee '' of {$25.00} XX/XX/XXXXNobody called me back as promised. 

XX/XX/XXXX - US BANK collections called me to pay the negative balance, caused by THEIR FEES. 

XX/XX/XXXX US Bank charged me an " Extended Overdraft Fee '' of {$25.00} XX/XX/XXXX At this point they have charged 22 overdraft fees for a total of {$630.00}. In addition to the {$630.00} of overdraft fees, US BANK deducted {$500.00} from my Secured Card which was prepaid with my own cash. I did not authorize US Bank to take money out of my Secured Credit Card to cover their own overdraft fees. The teller never mentioned this to me when I signed up for the account. 

After US BANK pulled {$500.00} from my Secured Card to cover their overdraft fees, my card available balance dropped to {$0.00} and my credit score dropped 109 points. The only reason I visited US BANK was to help my credit. Instead they have made it worse with unfair and unethical fees. 

Total loss = {$630.00} overdraft fees + XXXX deducted from Secured Card = {$1100.00} Current Checking balance : - ( {$460.00} ) Current Secured Card balance : - ( XXXX )XX/XX/XXXX Received " FINAL WARNING LETTER '' stating : Your account will be closed by the Bank byXX/XX/XXXX and may be assessed a {$30.00} Account Charge-Off Processing Fee. 
Upon account closure, we may report information about you to a consumer reporting agency. Defaults on your account may be reflected in your credit report which may prevent you from obtaining services from other financial institutions. 
Depending on the amount of the delinquency, we may turn your account over to a collection agency for resolution. 

Not only did they take {$1100.00} from me, but now they are threatening me with more fees, account closure, and a collection agency. 

This is the worst bank experience of my life. I request CFPB to publish this on consumerfinance.gov so others can learn how US BANK punishes their customers.

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