Consumer complaint received 2021-01-21
Company: U.S. BANCORP
State: AZ
Product: Mortgage
Sub-product: Home equity loan or line of credit (HELOC)
Issue: Trouble during payment process

Complaint:
In XX/XX/XXXX, US Bank contacted me to ask if I were interested in a forbearance plan for my HELOC. I contacted US Bank to ask about the forbearance plan for my HELOC account XXXX. I was told, that by entering into a forbearance plan, there would be no negative impact on my HELOC or on my credit score. I was told that interest would be deferred and a payment plan would be worked out at the end of the plan and that no other negative actions would occur. I agreed to do this, since I did not know if my income would be affected by COVID. 

On XX/XX/XXXX, I received a letter from US Bank confirming the forbearance plan for my HELOC. Fortunately, my income ended up being sufficient enough so that I could make my HELOC payments and I never did use the forbearance option. I have and continue to make payments of {$500.00} per month, p and i, even though my monthly minimum payment is only about {$100.00}, hoping by doing this that I am reducing my principal balance on the HELOC. 

In XX/XX/XXXX I received a letter from US Bank outlining that I had no obligation to make payments for the HELOC for 3 months ( XXXX, XXXX, XXXX XXXX. I called US Bank on XX/XX/XXXX and advised them that I was not going to use the forbearance plan any longer and that I could make payments. On XX/XX/XXXX, US Bank sent me a letter stating that my HELOC forbearance were extended for 3 more months ( XXXX, XXXX and XXXX, XXXX ). On XXXX XXXX, XXXX, I received another letter from US Bank stating my forbearance was extended for another 3 months ( XXXX XXXX XXXX XXXX XXXX. This was long after I advised them that I wanted to terminate the forbearance plan. I received a similar letter dated XX/XX/XXXX, again advising that my forbearance plan was extended through XX/XX/XXXX. 

On XX/XX/XXXX, US Bank sent me a letter advising me that I have " accepted '' an extension on my forbearance of my HELOC. ( This is AFTER I told them on XX/XX/XXXX, that I wanted to terminate the forbearance plan. ) In this letter, US Bank advised me that it had suspended my ability to request advances on my line. US BANK DID NOT ADVISE ME THAT IT HAD REDUCED MY AVAILABLE CREDIT ON THE HELOC TO {$0.00}. ) The letter said that I could not obtain funds via ATM, credit cards, debit cards, branch advances, telephone or electronic transfers, etc., effectively limiting my access to funds completely! I filled out a form called a " HELOC Reinstatement Request Review Form '', requesting that US Bank " reevaluate the HELOC for reinstatement of credit advance privileges ''. I sent this form to US Bank on XX/XX/XXXX. On XX/XX/XXXX and XXXX, XXXX, US Bank sent me two similar letters granting my request to terminate the forbearance program. The letters did not mention anything about NOT granting advance privileges on my HELOC. 

Since XX/XX/XXXX, I have made over 20 calls to US Bank and talked to their customer service, credit specialist, collections, forbearance, loss prevention, loan servicing, default counseling, and other departments. I have been put on hold for hours at a time, and transferred repeatedly from one department to another to try to ascertain why my available credit on the HELOC was still {$0.00}. In XXXX, I spoke with a customer service representative that said she would make sure my account was in an active status. On XX/XX/XXXX, I spoke with a credit specialist, XXXX, ( XXXX ) who said my credit availability was set to $ XXXX ( the original amount ), that my monthly payments were reallocated properly to principal and interest, and that I would have access checks and an access card sent to me. I received the access checks, but nothing else was changed on my account. On XX/XX/XXXX, I spoke to XXXX, credit specialist ( XXXX ) who said she would submit a form to reinstate my credit under the HELOC to $ XXXX, and that the account would be changed from " pay down '' to " open ''. She said this would take 2 hours before showing up on my online account to view. She said she would order an access card and that my checks were ok to use now. On XX/XX/XXXX, I used a HELOC access check to pay for a home improvement for shades for windows. I called US Bank and the vendor on XX/XX/XXXX, and was told the check had bounced, because there were no available funds in my HELOC account. Today, XX/XX/XXXX, I have spent over 5 hours on the phone to US Bank trying to get this straightened out. I still am unsuccessful and am constantly transferred from one department to another. The last person to whom I spoke was XXXX ( employee ID XXXX ) in the customer service dept ( XXXX ), today he advised me that he would look into my account and see if he can restore my credit line and would also reverse any fees for my bounced check. He said he would call me back in 5 days to confirm. I am not holding my breath. 

The customer service is terrible. The bank has illegally denied me credit without an approved reason through an approved HELOC, a violation of the Equal Credit Opportunity Act and Regulation B. Since I am also a XXXX XXXX, this may be a discriminatory action, and also would constitute and unfair and deceptive practice under the consumer protection laws. 

I want my available credit restored, and an access card to my HELOC provided to me. I want proof this has not affected my credit scores or my availability to credit. I also want US Bank to pay any fees associated with the bounced HELOC access check. And I want an apology and assurances that this type of nightmare will not happen to someone else. If necessary, I will take this to the local media. 

XXXX XXXX XXXX XXXX XXXX XXXX XXXX, AZ 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