Consumer complaint received 2018-11-09
Company: U.S. BANCORP
State: NC
Product: Debt collection
Sub-product: Other debt
Issue: Written notification about debt
Sub-issue: Didn't receive notice of right to dispute

Complaint:
Over the last three months I have been trying to settle a debt with US Bank for a Line-of-Credit charge-off that is stopping me from receiving a GRAD Plus - Student Loan from the Department of Education/Federal Student Aid. 

I learned of my debt late XXXX/early XX/XX/2018 when my financial aid was not dispursed in full. 

General information about the debt is provided below : Balance : {$1400.00} Account Status : Closed Last Payment : > 30 days Current Payment Status : In Collections/Charge-Off. 

I contacted US Bank to try to settle this debt and one more debt that I was unaware that I had on my credit report. US Bank Credit Card Department was able to easily help me in settling one debt over the phone with a settlement payment. I have confirmation that the account was settled on an official letterhead dated late XXXX/early XX/XX/2018. 

I was attempting to work with the US Line of Credit Department to settle the Line of Credit Debt that I had at the same time and it has proven much more difficult. First I updated my contact information from my prior state of residence to my new address in North Carolina, because I have not received any notification of my debt. 

When I initially called in XXXX, I was informed by an official named XXXX that I would be able to settle my debt of {$1400.00} for {$950.00} and that once I accepted that offer, I would have to pay it within 1 month before it expired. I waited a week to make sure I had enough funds to settle the account and called XXXX back to accept the offer at the end of XX/XX/2018. 

When I accepted the offer, XXXX transferred me to the settlement payment department. When I attempted to make a payment over the phone, the representative over the phone told me that US Bank was unable to take a settlement payment from me because my debt is out of the North Carolina Statute of Limitations ( the state has a 3-year window for creditors to collect on a debt, if the time passes the creditor can no longer ask for/accept payment for a debt ). 

During this time, I became a bit frustrated because I was trying to settle the debt and was under the assumption by the bank that they would allow me to make a settlement payment. I was trying to find out from the representative if she knew of any other way to resolve my debt within the Line of Credit Department. She did not provide me with any instructions or information. 

Since there was this problem, I called the general US Bank Customer Service Department and she was able to get a hold of the Line of Credit Department and have them open an appeal for my settlement offer. She also gave me the number of a manager named XXXX to call in the next week regarding my situation. The following week I called XXXX and the Line of Credit Department every day to try to take next the necessary actions. I continually left voicemails with my account number, social security number, and contact information. I never had my calls returned. 

After a week and a half, I called the Line of Credit Department to re-explain my situation and was able to talk to a representative that told me I need to submit a written letter to the Department to get my issue addressed on an official bank letterhead. I received the XXXX XXXX Address I needed, so I can ask the bank to take action to delete my LOC Charge-Off from their records since they can not accept a settlement payment from me since I live in North Carolina and the age of my debt exceeds the Statute of Limitations. 

The address the representative gave me was : US Banks LOC Department Complaints XXXX. XXXX XXXX XXXX, OH XXXX I sent a letter to the address above on XX/XX/XXXX. The Department of Education/Federal Student Aid requires the submission of bank statements on an official letterhead to consider it a valid documentation for a credit appeal. I thought this would be the best way for me to get an official statement from US Bank on the status of my account and any final steps we can do to close/settle the account and permit me to get my GRAD Plus student loan.

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 non-monetary relief