Consumer complaint received 2019-09-18
Company: U.S. BANCORP
State: CA
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Advertising and marketing, including promotional offers
Sub-issue: Confusing or misleading advertising about the credit card

Complaint:
On XX/XX/XXXX, I received an email solicitation for a Credit Card from US Bank. It stipulated that I was qualified for a low intro APR in the subject. Upon opening the email, it reads what the promotional interest rate ( zero percent ) for purchases and balance transfers for the specified period, but it does NOT specify any type of fee for balance transfers. 

The 0 % Introductory APR is underlined and is a Hyperlink to review the specific terms and conditions of the Credit Card. I clicked on this link and thoroughly reviewed the terms and conditions, as well as the fees to confirm that there was NO FEE being assessed for the Balance Transfer, in order to receive the 0 % for 18 months. No where in the terms and conditions does it stipulate that there would be a 3 % fee for Balance Transfers. As a result, I applied for the credit card. 

I was assessed a 3 % fee of {$220.00}. When I inquired further of this fee with US Bank, they stipulated that this was the fee for the balance transfer and that there was nothing they could do. In trying to research and prove my point to US Bank that I was not aware of this fee, I then noticed that the email solicitation advertising the Pre Approved 0 % APR has an asterisk next to it. If you scroll ALL the way down to the bottom of the email in the fine print it does indeed state there is a 3 % fee, however, it does not clearly specify this under the terms and conditions hyperlink that is included in the same email. 

Essentially, depending what route you go to view terms and conditions will allow you to CLEARLY see what they will charge you, OR be left in the dark as to there even being a fee. 

I have emailed US Bank Customer service on numerous occasions, faxed in the support documents with the proof of their misleading advertising tactics and they stand by their fee and are not willing to waive it. Nor have they offered to waive a portion of it. The only option that they have granted me was to payoff the credit card within 30 days and they would waive the fee. 

XXXX XXXX of the Office of the President with US Bank essentially argued with me over the telephone standing by their very clear and concise email advertisement. I however am very well versed in reading terms and conditions of various credit cards, and no where in the terms and conditions hyperlink that I reviewed BEFORE applying did it CLEARLY specify that there was a 3 % Intro Balance Transfer Fee. In my complaint and correspondence I addressed the CA law of clear and concise advertising, but that was of no concern. I was simply told that they would consider my complaint for future marketing solicitations. If you were 100 % certain that this was NOT at all misleading and was indeed clear and concise as you claim, I don't understand why you would even say you would " consider '' my complaint for future marketing solicitations. I feel this in itself is justification that it can be misleading and unclear. 

I have enclosed a copy of the email and the terms and conditions that I reviewed by clicking on the hyperlink within the email. As you can see, only if you scroll down to the fine print asterisk do you find the 3 % fee verbiage, but if you review the terms in conditions next to the APR for balance transfers, it does not clearly state that there is a 3 % fee for opening balance transfers. Down below under transaction fees, again there is no mention that clearly states this fee applies to Initial Balance Transfers. The Terms and Conditions of other credit cards companies are VERY clear in both of these areas when stating that the fee also applies to an Introductory offer. As a result of these differing specifications, depending on which you choose to review, I believe this is extremely misleading and unclear. If you thoroughly read terms and conditions one should be able to come to the same conclusion of the fine print at the bottom of the email, however this is clearly not the case. 

I am extremely disappointed and upset as this has tied up my credit and left a mark on my credit report, and it was essentially all for nothing.

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