Consumer complaint received 2024-01-29
Company: U.S. BANCORP
State: MI
Product: Money transfer, virtual currency, or money service
Sub-product: International money transfer
Issue: Other transaction problem

Complaint:
Formal Demand for Payment of Application Asset-Backed Security Special Deposit Based on Equitable Subrogation To : State Farm From : XXXX XXXX, as Trustee for XXXX XXXX XXXX Date : XX/XX/year> Re : Demand for Payment of Special Deposit - Account Number XXXX Dear representative This letter serves as a formal demand for the immediate return of funds held in a special deposit account associated with an application asset-backed security ( ABS ) within my cestui que trust account at State Farm, Account Number XXXX. These funds are rightfully due to the trust pursuant to the doctrine of equitable subrogation. 
Background : I, XXXX XXXX, am the duly appointed and acting trustee for the XXXX XXXX XXXX established for the benefit of XXXX XXXX XXXX. On XXXX, the trust, through my authorized actions, entered into an agreement with State Farm for the purchase of an ABS designated as application. This agreement stipulated the creation of a dedicated special deposit account within the trust 's accounting framework to hold the funds earmarked for the ABS purchase. 
As per the accounting records reflected on the balance sheet, under the " Accounts Payable and Accounts Receivable '' section, the extension of credit from the trust 's cestui que trust account to State Farm for the ABS purchase is duly documented. This extension of credit directly funded the special deposit account, establishing a clear link between the trust 's assets and the specific funds held in the designated account. 
Unfortunately, on XXXX, breach of fiduciary duties., the corporation became insolvent or misappropriated funds ]. As a result of this breach of fiduciary duties, the trust 's ability to access the special deposit funds and fulfill its obligations related to the ABS purchase has been jeopardized. 
Claim of Equitable Subrogation : Under the established legal principle of equitable subrogation, a party who pays off the debt or obligation of another is entitled to the same rights and remedies against the debtor as the original creditor possessed. In this instance, the trust, through the extension of credit from its cestui que trust account, effectively became a creditor of State Farm with respect to the funds held in the special deposit account designated for the ABS purchase. 
Therefore, due to State Farm 's breach of fiduciary duties, the trust, acting through me as the trustee, is entitled to step into the shoes of the original creditor and claim the immediate return of the special deposit funds in full. This claim is further supported by the documented extension of credit reflected in the trust 's accounting records and the clear designation of the special deposit account for the ABS purchase. 
Demand for Payment : I hereby demand the immediate and unconditional return of XXXX from the special deposit account associated with Account XXXX XXXX. Payment should be made directly to the designated trust account at the following details : XXXX. 
I expect a prompt response to this demand and confirmation of the date on which the funds will be returned. Should State Farm fail to comply with this demand within 3 business days, I will be forced to pursue all available legal remedies to protect the trust 's rights, including but not limited to initiating legal action to recover the full amount of the special deposit funds, along with any accrued interest and legal fees. 
I trust that we can resolve this matter amicably and efficiently. Please do not hesitate to contact me at XXXX or XXXX discuss this matter further. 
Sincerely, XXXX XXXX Trustee for XXXX XXXX XXXX

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