Consumer complaint received 2019-06-20
Company: U.S. BANCORP
State: OR
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Trouble using your card
Sub-issue: Account sold or transferred to another company

Complaint:
To whom it may concern, To recap the situation, XXXX XXXX XXXX for XXXX, XXXX ( XXXX ) had a business credit card that was issued through XXXX XXXX XXXX ( XXXX ). The owners and co-guarantors on the account were XXXX and XXXX. XXXX, an employee, was issued a card as an authorized user and was not an owner nor a guarantor on the account. XXXX changed toXXXX XXXX ( XXXX ) and somewhere along the line the account wastransferred to ELAN. In late XX/XX/XXXX, XXXX ceased operations and was administrativelydissolved due to business failure. 

The XXXX business credit card with XXXX was set up on an automatic payment system. The minimum monthly payment was deducted from the XXXX business checking account and paid through auto pay. When XXXX changed to XXXX the XXXX online account was inactivated. XXXX started to receive paper statements from XXXX. XXXX never established an online account with XXXX. XXXX made payments by check to XXXX. Shortly after XXXX changed to XXXX, I noticed some differences between the XXXX and XXXX credit card account. The account number and interest rate were different. 

I called the number on the XXXX credit card statement to discuss the differences on the new XXXX credit card account. I was advised that I was not the owner of the account or listed as an authorized user on the account. As a result, the XXXX representative stated she was unable to discuss the account with me or provide any details pertaining to the account. This was another big discrepancy between the XXXX and the XXXX credit card account. On the XXXX credit card account with XXXX I was listed as an owner, authorized user, and co-guarantor. I was advised by the XXXX representative that the account was not assigned an owner or an authorized user. I asked the XXXX  representative to confirm the account to establish that XXXX and XXXX were the owners and personal co-guarantors on the account. The representative advised that other than the XXXX, XXXX, she was unable to establish the owner of the account or the personal guarantor of the account. 

I was very concerned as to the authenticity of the account as I was unable to verify the account and the representative was unable to establish that I was a co-owner and co-guarantor on the account. The name, address, and telephone number I used in attempt to verify the account, because I was named on the account, did not match up with the information on the account. I asked the representative to please provide me with the signed written contract, including the terms of the agreement and the personal guarantors on the account. I requested the information to confirm the account was mine and that I was the guarantor on the account. The representative advised that the information I requested was not available and she would be unable to provide me with any account information as I was not an owner of the account, an authorized user, or able to provide other information to verify the account. I was advised that I would need to take responsibility for the account by becoming an authorized user before any account information, including account verification, could be provided. I advised the representative that it would be absurd to take responsibility, in writing, for an account that you were unable to verify was actually your account. 

I was unaware that ELAN had taken over the account as the statements were printed on XXXX letterhead. 
I called the number on theXXXX statement, multiple times, to inquire about thediscrepancies. I was advised, multiple times, that my name was not on the account and I was not an authorized user and that no information on the account could be provided to me as a result. I attempted to verify the account on multiple occasions with no success. I was unable to verify the account with the information I provided such as my name, address, or telephone number. I was not named anywhere on the account and my address and telephone number on file did not match my personal or previous business address or phone number. As a result, I was unable to obtain or verify any information on the account. 

I determined that my former business partner, XXXX, must have removed my name from the account and was making the payments, as she was a co-guarantor. This explained why I was not named on the account and was not authorized to obtain any information onthe account. I continued toreceive statements anddiscarded them because I had no access to the account and assumed the account was being managed by my former business partner. In XX/XX/XXXX, a caller, identified as a representative of XXXX collections department, contacted an employee at my new business, XXXX XXXX XXXX  XXXX ( XXXX, the phone number is the same ). The caller asked to speak to XXXX inregards to a past due account for XXXX. My employee advised the caller that XXXX had closed and XXXX was not affiliated with the new company. TheXXXX collections representative asked to speak with XXXX. The employee advised the caller that XXXX. was a former employee of XXXX and was not affiliated with XXXX. The employee took a message and forwarded the information to me XXXX. 

I contacted the XXXX XXXX branch by phone about thedelinquent XXXX credit card account phone call. I was advised by the representative that all of the XXXX credit card accounts were paid in full with a XXXX balance. I asked to close the account and was informed that I was not authorized nor did I have the authority to close the account as I was not named on the account nor as an authorizeduser on the account. I was advised that I was listed only as a card holder. I asked if my former business partner, XXXX, was named as the account owner or authorized user on the account and was advised that XXXX was not listed on the account at all, not even as card holder. 

I was very concerned at this point since the information I received from the teller at XXXX ( XXXX  ) was  inconsistent with the previous XXXX account information. The account information provided by the representative was not accurate. XXXX and XXXXwere the owners and co-guarantors of the XXXX credit card account. XXXX was listed as a card holder. I was concerned about the discrepancies on the credit card account and found it very odd that a reputable financial institution would make such a mistake as deleting the name of one owner and listing the second owner as an employee card holder with no authority to manage or close the account. I determined that my formerbusinesspartner, XXXX, must have paid off the account and removed her name from the account. I was unable to explain why I was removed as an owner of the account and then identified as an employee card holder. Although, I was extremely concerned about the unauthorized changes that had been arbitrarily made to the XXXX credit card account, I did not inquire about the changes because the balance was XXXX and I was going to close the account. I inquired as to how I could close the XXXX credit card account. I was informed by the teller that I was not authorized to close the account as I was not an authorized user. I closed the XXXX checking account as I was accurately named as an owner and authorized user on this XXXX account but was unable to close the XXXX credit card account. This was concerning as there was a potential risk of someone using the open account. 

Despite assurances to the contrary, I continued toreceive statements fromXXXX indicating an overdue balance. I went in to the XXXXXXXXbranch again to inquire about the delinquency notice. I was again informed that the XXXX account and all cards associated with the account had a XXXX balance. The teller called the number on the back of the card and confirmed that the balance was XXXX. I again requested to close the account and was informed that I was not authorized to close the account. The teller said she would research how I could close the credit card account and she would follow up with me. I never received any information on how to close the account. 

I continued to receive past due notices on the credit card account. Confused, I went to the XXXX XXXX XXXX branch for assistance as to why I continued to receive past due credit card statements when I had a XXXX balance. Again, I was advised that the XXXX credit card accounts had a XXXX balance and that I was notauthorized to close the account. I followed up by phone with the teller at the XXXXXXXX branch location that was supposed to research how I could close the XXXX credit card account without being an authorized user on the account. The XXXX  teller apologized for not getting back to me and I was advised that I needed to write a letter to XXXX on XXXX letterhead stating that I was the authorizeduseron the XXXX credit card account and take responsibility in writing for the account, then XXXX would authorize me to close the account. I was unwilling to take responsibility for the account, with the conflicting information regarding the balance on the account. The XXXX branch and XXXX statements had conflicting account balances and both had the incorrect card owner information. I could simply not take responsibility for an account that I could not verify was accurate or even mine. I could also not write a letter on XXXX letterhead as the company had been dissolved. The XXXX stationary had been discarded and I was no longer a member of the XXXX. 

I continued toreceive statements indicating an overduebalance with accumulating late charges and mounting interest. I contacted the number on theXXXX credit card bank statement on multiple occasions and was unable to discuss the account as I was not named on the account and not named as an authorized user. I advised that I had gone toXXXX on multiple occasions and had been toldrepeatedly that the XXXX credit card account had a XXXX balance. During one of my calls attempting to rectify the situation I spoke with a representative who told me thatXXXX had nothing to do with my credit card account and that ELAN was the owner of the account. The representative stated that XXXX hadtransferred or sold my credit card account to ELAN during the transition from XXXX toXXXX. I was also advised that the name on the account or authorized user was not required for the transfer. I stated that the statement saidXXXX. The representative said the statement indicatesXXXX but the number on the credit card statement is an ELAN number and ELAN is the owner of the account. 

This seemed very misleading, fraudulent, and confusing. I thought the statements and the information I had received when calling the number on the statements were fraudulent. I continued to talk with many departments, managers, and associates with ELAN/XXXX  but I was unable to substantiate or verify the legitimacy of the account. The representatives at ELAN/XXXX repeatedly encouraged me to pay the overdue amount or at least make a payment on the account. I informed ELAN/XXXX that I could not make a payment on an account that I could not verify as mine. I was advised that an unauthorized user could make payments on the account and I was strongly encouraged to do so. I again informed the representative that I was unable to make a payment on an unverified account. I was advised that the account was seriously past due and unless the overdue balance was paid in full I would be reported to the Credit Bureau. I asked, how could I be reported to the Credit Bureau if I was not the owner or authorized user on the account? I was advised that myself, XXXX., along with XXXX. were identified as card holders on the account and as such would be reported to the Credit Bureau for the delinquent account, despite not being named as owners on the account. I explained that XXXX. was a former employee, not even living in the state of Oregon, and not a co-signer or an owner of XXXX. I was advised that because the account did not have an owner or authorized user that anyone associated with the account was responsible for the balance and would be reported to the Credit Bureau. I confirmed with the representative that although as a card holder I was responsible for the account, I was not able to obtain any information pertaining to the account, such as the owners and guarantors on the account, discrepancy on interest rates, interest, late fees or terms. The representative confirmed that I was responsible for the account as a card holder but that I did not have the authority to verify the account, authority to discuss the details of the account, or authority to close the account. This felt fraudulent as I was being threatened and intimidated into making a payment on an unverified account to protect my personal credit. 

Extremely confused and frustrated, I contacted XXXX XXXX, who I had worked with during the operation of XXXX, atXXXX. XXXX immediately confirmed that the account had beentransferred to ELAN. XXXX stated that the transfer did not require an account name and nobody was listed as the authorized user on the account. XXXX also advised me that during the transfer from XXXX to ELAN the XXXX credit card account had dropped me as the owner and authorized user on the account. XXXX stated that I was now listed as an employee card holder and XXXX, the other owner of the account, had been removed from the credit card account entirely. XXXX stated that there were now two accounts for XXXX, one account with XXXX with a XXXX balance and one with ELAN with an outstanding balance. This is very confusing. If the account was transferred, why did I still have an account with XXXX? XXXX confirmed that because I was not named on the account or an authorized user on the account I could not close the account with XXXX. XXXX stated that I would need to complete a form taking responsibility for the account at XXXX by signing a form or I could write a letter on XXXX XXXX accepting responsibility for the account before I would have the authority to close the account at XXXX. 

I continued to contact ELAN on multiple occasions and spoke tomultiple departments, managers, and associates to verify the XXXX account. No one was authorized to discuss the account balance, payment history, late fees, or interest. I repeatedly asked for the contract agreement, co-signer agreement or any documentation to prove that I was legitimately the owner of the account. I requested that a copy of the XXXX card application, XXXX signed credit card agreement or XXXX personal guarantor agreement be used to verify my association and ownership of the account. I was advised that these documents were not available to validate the account or my ownership of the account. I contacted XXXX again by email asking for help to resolve the situation. XXXX referred me to XXXX XXXX, the Commercial Relationship Banking Assistant at XXXX. I scheduled an appointment on XX/XX/XXXX with XXXX and explained the situation. XXXX had discussed my situation with XXXX so she was familiar with the issue. XXXX contacted ELAN and was advised that I was not named on the account or an authorized user and as such was not authorized to verify the account or to discuss the details of the account. ELAN advised XXXX to have me make a payment to bring my account current to avoid additional late fees and to complete the form accepting responsibility for the account so they could confirm the account and discuss the details of the account with me. XXXX stated that she was unhappy with the relationship XXXX had with ELAN because they were difficult to work with and that they have had problems with other accounts surrounding the transfer from XXXX to ELAN. XXXX advised me that she had a good relationship with an ELAN representative and would reach out to her. XXXX contacted her contact and was advised by the contact that I was not named on the account or an authorized user on the account and as such I was not authorized to verify the account or to discuss the details of the account. The ELAN contact advised XXXX to have me make a payment to bring my account current to avoid additional late fees and to complete the ELAN bank form accepting responsibility for the account. 

XXXX advised me that she was going to discuss the situation with XXXX and request a meeting with her ELAN contact and XXXX in an attempt to verify the account and confirm that XXXX is the correct account and that XXXX and XXXX are the account owners and the co-guarantors for the account and that I have the authority to close all XXXX accounts with both XXXX XXXX and ELAN. I am unable to proceed with any resolution until I can confirm the ELAN account for XXXX is accurate, belongs to XXXX and XXXX, that XXXX and XXXX.are the co-guarantors on the account, and that I have the authority to discuss the details of the account and to close the account. 
This situation appears fraudulent and seems to be a ploy by ELAN to keep the account open so that they can continue to charge interest, late fees and threaten my credit if I dont comply with their demands for an unverified account. I can not blindly accept responsibility for an account, thereby accepting liability for a debt that is not verified as mine. 
Its a Catch-22 situation that leaves me entirely at risk. 

To date to resolution or contact has been made. I was advised by XXXX XXXX from XXXX that a representative with updated information was going to call me but that has not happened. The interest, late fees, and harassing phone calls are mounting. My credit is being threatened. To date, I credit has not been impacted just threatened to be by ELAN. 


Sincerely, 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