Consumer complaint received 2023-10-19
Company: U.S. BANCORP
State: GA
Product: Prepaid card
Sub-product: General-purpose prepaid card
Issue: Trouble using the card
Sub-issue: Trouble using the card to pay a bill

Complaint:
*On XX/XX/XXXX, I purchased a {$500.00} VISA gift card at XXXX XXXX I paid a total of {$500.00}. Immediately after, I made a {$12.00} pharmacy purchase and a {$10.00} grocery purchase at XXXX using the card. Approximately three hours later, I called the number on the back of the card XXXX ( XXXX ) to check the balance. I was connected to a live Rep, not an auto-system with my balance. My balance was correct at XXXX. However, the Rep advised that a " fraud alert '' was placed on my card. Why? The Rep said " it just happens '' or something very close to that. To unfreeze my card, the Rep said I would need to send a copy of the front and back of my driver 's license. I asked why, the Rep said it was the only way to lift the hold on my card. I was not comfortable sending my personal info... this company does not know who purchased the card, so why would they need my ID info??? I ended the call. 
XXXX XX/XX/XXXX, I called XXXX XXXX XXXX on my Activation Status Receipt I received when I purchased the card. Of course, they were only able to confirm that the card was activated for {$500.00}. 
*Next on XX/XX/XXXX, I called the XXXX XXXX XXXX XXXX XXXX XXXX to ask if this practice was the norm. The person I spoke with advised that they also would be concerned about giving my ID. I was advised to call XXXX directly at XXXX. 
*Next on XX/XX/XXXX, I phoned XXXX at the number above and explained the situation. The young man I spoke with said he would transfer my call. But, he sent me right back to who I believe is the same group I spoke with when I called the number on the back of the gift card. The name given on the transfer was " XXXX XXXXXXXX XXXX XXXX XXXX. '' XXXX XXXX XXXX the person I spoke with confirmed what I was told on XX/XX/XXXX about unfreezing my card. She said I would need to upload copies of the front and back of my gov-issued ID to the web address on back of the gift card ( www.prepaidgiftbalance.com ) or fax to XXXX. She said it would take 7 to 14 days to issue a new card ; and my new card with {$470.00} would come by mail. She said they needed my ID so the card could be issued in my name. I asked for a case number and was adv they do not assign case numbers. I asked how they would match up my ID with my card, since they don't even know my name. She said they would know??? I did not send my ID. 
*Today, XX/XX/XXXX, I went back to XXXX Customer Service Desk to attempt to purchase a money order for the balance on my gift card, {$470.00}. However, I received a " not authorized '' message when I swiped my gift card. Same thing trying to make a small purchase and trying to just take cash back. 
*Next on XX/XX/XXXX, I called the XXXX Fraud Watch Network XXXX. The person I spoke with also expressed concern in giving my ID. She suggested I contact your organization ( Consumer Financial Protection Bureau ) at consumerfinance.gov. 
*I have done all I know to do to resolve this issue... short of sending copies of my ID. But, I am concerned about providing that info as I do not know " why '' they need it in the first place. I did not fill out a form with personal info when I made the anonymous purchase. I am concerned someone will use my info for other purposes. Also, why was a fraud alert put on the card on the first place??? Now, even if they issue a new card, I assume it will come with a fee... I understand the only fee-free card is an expired card replacement. And why the fraud alert??? I purchased at XXXX ; I made two purchases at XXXX within minutes of buying the gift card. And three hours later, I learn they put a fraud alert on my card and froze my card... keeping my {$470.00} balance. 
**I want the company to immediately unfreeze my gift card that I purchased with my money. This card was to be used to purchase my groceries, my medication, pay XXXX XXXX, buy gasoline, and pay for an oil change and tire rotation on my car for the next four weeks. I have given gift cards in the past for birthdays and XXXX. However, I will never, ever purchase another XXXX gift card. If these gift cards are managed by a third party, and not by XXXX, there should be a prominent notice on the front of the gift card package advising that. This company 's action has unnecessarily caused me extremely stress. 
( When researching VISA gift cards online, I did not see any complaints. Afterwards, giving specific details of the issue I am dealing with, I saw others experienced very similar problems with VISA prepaid cards. ) **THANK YOU, THANK YOU FOR ANY HELP!!!

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 non-monetary relief