Consumer complaint received 2023-03-25
Company: U.S. BANCORP
State: MN
Product: Checking or savings account
Sub-product: Checking account
Issue: Problem with a lender or other company charging your account
Sub-issue: Transaction was not authorized

Complaint:
I have already submitted claims highlighting issues with how Funds was taken via bank account linking and yet US Bank has failed to resolve the matter. I had to resort to going back and checking the legal requirements. Legally The maximum loss sustained by a customer should be no more than {$500.00}. 

Yet I lost {$9500.00} XX/XX/XXXX and XX/XX/XXXX. Similar transactions on XX/XX/XXXX was credited. This does not make any sense and is illegal. I had a chat with my branch manager and he reassured me that I will get my money back. He called Fraud Department and they asked him to refile the claims. He did. This was on XX/XX/XXXX. Since then I have called Fraud few times as of my last follow up. The person said I will get a generic letter stating my claim was denied and marked and duplicate. I also asked the person for investigator 's report on reasons for this. She said they can not do that. As a customer I have a right to know why some claims were approved while others were denied yet they are all Fraudulent transactions made to to an external account. 

Now All this has lots of legal issues. 
1. Disclosure was not sent to me when account was link 2. Disclosure was not sent to fraudster.

3. I am limited to my losses because this is Fraud and is covered by 1978 federal rule called Regulation E for electronic funds transfer.

4. Aside from legal issues with the process it has has security lapses on many fronts.

5. Once user logs in the person should not be elevated to most privileged where they can do anything. Also user should not allowed to log in from another location IP and not have 2FA sent to the mobile device. 

Please note emails alerts are less secure than SMS for ex when someone takes over your email god forbid then they have it all. Also emails as noted by US Bank stuff usually end up flagged as SPAM, Let me note by saying everything I call US Bank they have told me emails will be sent please search your SPAM! 

Now when these email alerts were sent I was not expecting the emails so obviously I did not look into SPAM. 

ONLY way I found out as noted before was logging in that one night. 

Under a 1978 federal rule called Regulation E, banks are required to make clients whole if their money is stolen from a consumer account through an electronic payment initiated by another person. Since Reg E was written well before payment apps existed, The Bank is supposed to hand over. 

Here is the link outlining liability for the customer. 
https : //www.consumerfinance.gov/rules-policy/regulations/1005/6/ Guideline were not followed when account was linked again this does not follow legal practice as stipulated under the act. 

( a ) Conditions for liability. A consumer may be held liable, within the limitations described in paragraph ( b ) of this section, for an unauthorized electronic fund transfer involving the consumer 's account only if the financial institution has provided the disclosures required by 1005.7 ( b ) ( 1 ), ( 2 ), and ( 3 ). If the unauthorized transfer involved an access device, it must be an accepted access device and the financial institution must have provided a means to identify the consumer to whom it was issued. 

Here is another link on E Transfer regulations. 
I was baffled and thought we had no regulations or act to protect customers from Bank Fraud in regards to E Transfers hence I had to do more research. 

IMO US Bank fraud department needs to be better trained in this regards and not be reading off a script to give a silent treatment to their customers and expect customers to GIVE I NEVER GIVE UP ITS MY HARD EARNED MONEY THAT SOMEONE STOLE AND US BANK SHOULD BE MORE RESPONSIBLE.

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