Consumer complaint received 2019-02-03
Company: U.S. BANCORP
State: WA
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Fees or interest
Sub-issue: Problem with fees

Complaint:
Although the prepaid debit card states : " an inactivity fee of {$2.00} per month will be deducted from your available balance in the 13th month of card account inactivity '', it also states : Unless prohibited by law. According to Washington State : Wash. Rev. Code 19.240.040 Can enforce a dormancy or inactivity charge if : ( 1 ) disclosed as specified ; ( 2 ) The remaining value of the gift card is {$5.00} or less each time the charge is assessed ; ( 3 ) The charge does not exceed {$1.00} per month ; ( 4 ) The charge can only be assessed when there has been no activity on the gift card for 24 consecutive months, including but not limited to, purchases, the adding of value, or balance inquiries ; ( 5 ) The bearer may reload or add value to the gift card ; and ( 6 ) After a dormancy or inactivity charge is assessed, the remaining value of the gift certificate is redeemable in cash on demand. 

I was charged {$2.00} a month after 13 months of inactivity. I called about these charges ( via XXXX XXXX on XX/XX/XXXX and spoke with XXXX at XXXX XXXX, who confirmed that on XX/XX/XXXX, I had {$21.00} on my card ), after my account was drained from monthly inactivity fees, and was told I would be credited back the {$21.00} I had left on my card before the fees started. I received a new card, which I was assured would have the full amount on the card. When I called to activate my card, I was surprised to learn that this new card had a XXXX  ( XXXX ) balance. I called again and spoke with XXXX XXXX from XXXX XXXX on XX/XX/XXXX at XXXX XXXX and was on hold for about 30 minutes, with XXXX checking in with me every 10 minutes to make sure I was still on the line. He told me that XXXX did not finish the transaction and that he would look into it. Soon later, during the same phone call, XXXX told me that I had to show proof of the Washington State law and submit it to corporate for a review. I asked to speak to a supervisor, which I was granted. XXXX, the supervisor, told me there was nothing she could do and that I had to prove I was protected under Washington State law. I also informed XXXX that by law, the company would have to send me a notice by mail 90 days before the fees start to incur, before they can start charging me the inactivity fee. XXXX responded by stating that they are not bound to that law because of the terms and conditions included in the debit card packaging. This information sounds deceptive and leads me to believe that XXXX XXXX uses this practice to hoodwink their customers. 

My question is, shouldn't the corporation running these prepaid debit card programs be aware of the laws of each state? The way the company handled my complaint led me to believe that they have done the same act to many other people who are protected under their state laws.

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 monetary relief