Consumer complaint received 2023-01-27
Company: U.S. BANCORP
State: KY
Product: Mortgage
Sub-product: Home equity loan or line of credit (HELOC)
Issue: Closing on a mortgage

Complaint:
To : PCFB From : XXXX XXXX XXXX RE : US BANK XXXX XXXX - Violation of Truth in Lending Disclosure Act - failure to disclose correct interest rate " cap/ceiling '' during due diligence in choosing financial product from XX/XX/XXXX to XX/XX/XXXX I have attached : - Detailed/summary chronology of events with supporting document references, from XX/XX/XXXX when I began due diligence in managing my current HELOC -- - through to today, XX/XX/XXXX. 
- files containing key emails - the original cover letter complaint submitted to XXXX XXXX, VP US Bank - XX/XX/XXXX Meeting summary As of today, my case is being forwarded to the US Bank Wealth Management ( WM ) Loan Escalation Department following a XX/XX/XXXX meeting with the VP XXXX, however I do not know who that is ( person, position, contact information ), have not been able to find that contact information on their website, and have not heard from anyone formally to this effect - I have only a text from my business banker who has tried to keep the complaint moving forward. 


Starting in XXXX of XXXX I began due diligence in finding the best financial vehicle to replace my then HELOC ( $ XXXX ) to avoid inevitable increasing interest rates ; I wanted to lock in or cap my interest rate at the then low rates. I was told I had an interest rate cap of XXXX % on my current HELOC for 10 years ; I confirmed that information by follow up email and decided to stay with my current HELOC believing that the interest rate would not go over XXXX % [ I recall it was XXXX, but can not find my notes from the meeting ]. 

In XX/XX/XXXX, I contacted my personal and business banker about getting an increase in my HELOC to $ XXXX to cover home improvements ; terms were reviewed by email. My personal banker recommended, " reworking [ my ] current HELOC and increasing the limit. I was referred then to the Wealth Management dept. and they handled finalizing my application ( they later acknowledged there was no " hand off '' of information about terms, etc ), the appraisal and the closing. The XXXX representative did not review terms with me at any time until the XX/XX/XXXX closing during a verbal review. When discussing the " variable rate '' terms, I asked, " What is the interest rate cap ; I couldn't find it in the agreement? '' The XXXX rep answered, " Its essentially the same as your current HELOC '' I stated, " I want to know exactly what it is. '' She stated she would look it up and get back to me within the grace period [ if it is different than my original HELOC ]. She did not communicate that to me until I asked again, XX/XX/XXXX, she answered a day later, " My research indicates that it is 18 % ''. I learned later this is the XXXX XXXXXXXX mandated ceiling, which was not stated to me with either HELOC. 

Since that learning, I have worked with my business banker as advocate to determine what had happened. The list of activities are detailed in the attached file, and references supporting emails. This information ( including copies of all email exchanges referenced in the chronology ) was provided by me in email to the XXXX XXXX on XX/XX/XXXX. I have not had any communication from her since a XXXX phone conversation. 

My business banker scheduled a meeting on XX/XX/XXXX with the personal banker, the XXXX rep, the VP and I included my personal Financial Advisor who attended as witness, observer and note taker. See detailed meeting summary. My complaint was forwarded to the Wealth Management Loan Escalation Dept. but I know that only through a text from my business banker who now is no longer involved ( not his dept. ). I can not find the name, contact information for this dept. It is roughly three weeks since I was told someone would contact me and I have had no communication from US Bank. Given that I am eight months in process, having experienced delays, failure to return calls, respond to emails, etc., I am not confident that US Bank is going to resolve my complaint. The impact : after diligent effort to secure low interest HELOC/loan terms with US Bank as a high performing customer for over 20 years, being a reliable businessperson ( XXXX in finance ), a college professor teaching economics and finance for 7 years, a C-Suite healthcare executive for XXXX XXXX, and a reliable historian ( 99 % recall of meetings ) ; my interest-only payments have gone from {$600.00} to {$1800.00} ( 9 % ) when I thought/was told I was in a HELOC with a XXXX % cap for 10 years. 

I am filing this complaint to secure CFPB external proctoring of US Bank process, lacking an internal advocate or contact. If necessary, I will need an attorney whose scope of practice includes this issue. 

Key Players : Personal Banking Officer - XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX - XXXX XXXX : XXXX XXXX XXXX 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