Consumer complaint received 2023-11-09
Company: U.S. BANCORP
State: CA
Product: Prepaid card
Sub-product: General-purpose prepaid card
Issue: Trouble using the card
Sub-issue: Trouble using the card to spend money in a store or online

Complaint:
I received two different prepaid gift cards ( {$100.00} each for a total of {$200.00} ) as wedding gifts. These were both issued by US Bank. The cards were purchased by two different people at two different stores at different times. 

To date, I've not been able to use either card successfully due to what US Bank says are fraudulent transactions. 

Gift Card # 1 -- I have not been able to activate or use this card at all. When I called US Bank, I was told that the card was deactivated in XX/XX/XXXX because of fraudulent activity. This makes no sense because the card was purchased in XX/XX/XXXX. My friend even sent me the receipt to confirm the purchase date and amount. How can a card purchased in XX/XX/XXXX be deactivated because of fraud that supposedly happened 11 months ago? US Bank refused to issue a new card or reactivate the existing card. The store where it was purchased will also not help, saying that it's US Bank 's problem. This is {$100.00} completely lost. 

Gift Card # 2 -- I successfully made one purchase from XXXX for {$45.00} on XXXX XXXX. I tried to use the card again on XXXX XXXX, and the transaction was denied. I tried again on XXXX XXXX and the transaction was denied. I called US Bank and was told there was a XXXX balance because the remaining {$55.00} was used at a XXXX XXXX store in Virginia. I live in XXXX XXXX. How is that possible? The card has not been out of my possession and has been used only once at XXXX. US Bank said that they would " investigate '' and replace the balance ( for a {$5.00} fee ) if I FAX information and a copy of my ID to them. Given that this is XXXX, I don't have access to a fax machine. They also said that I could submit the information online, but when I try, I only get error messages from their website. 

I will also note that both cards came completely sealed in cardboard holders. No numbers or barcodes were exposed to indicate there was any tampering. 

I find this entire situation highly suspicious to the degree it might even be an internal theft ring. How are brand new cards being subject to this much fraud? Is someone at US Bank waiting to see what cards are activated and then stealing the numbers? Why is US Bank insisting on faxes as their primary form of communication to " fix '' the problem? Why would they charge me a {$5.00} fee to fix their own issue? Why does the website not work when I try to file a fraud dispute? This whole thing is crazy and reeks of a scam. 

These prepaid gift cards are the kind that are often sold in XXXX areas, which may explain the lack of attention and customer service from US Bank. Many times, consumers of these cards lack the knowledge of how to deal with the system and get their money back, which means more profit for US Bank at the expense of XXXX communities. In my case, I've been able to use less than 25 % of the balances that I'm rightfully owed. It's shameful!

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