Consumer complaint received 2017-09-18
Company: U.S. BANCORP
State: AZ
Product: Payday loan, title loan, or personal loan
Sub-product: Title loan
Issue: Can't stop withdrawals from your bank account

Complaint:
FACTS IN BRIEF : I took out a U.S. bank auto loan, dated XX/XX/XXXX, in the original loan amount of approximately {$11000.00} to purchase a used car ( attachment 1 ). The seller also had a U.S. Bank auto loan that was paid off with my new loan. Erroneously, the bank issued the title to the car to the seller, free and clear of all liens, instead of to me with the bank as the lienholder, therefore wiping out both their interest in the car and mine ( attachment 2 ). When I made the bank aware of their error, they did nothing to correct it. Then on XX/XX/XXXX, they sent me an email, asking me to bring them the title to the car so they could perfect their lien and protect their asset, even though they knew that they had issued the title to the seller ( attachment 3 ). The seller died within days of my discovering that the bank had erroneously issued her the title free and clear of all liens. I never took possession of the car because I could not get title to it and register it in my name and get insurance on it to protect my asset. 
FACTS IN DETAIL : I received the auto loan agreement in the mail in an envelope dated XX/XX/XXXX ( attachment 4 ). I did not know that the loan had closed until then, even though the loan is dated XX/XX/XXXX, an unreasonable twoXXXX month lapse. The seller had someone drive the car from California to my home in Arizona so I could register it here ; but when we went into the motor vehicle department, we were told that we did not have the necessary paperwork to register it. All that I had received in the envelope dated XXXX XXXX was a copy of the auto loan agreement in attachment 1.  We went into the bank and were told that the title would be coming in the mail to me in the next few weeks. Since I did not have title and could not register the car in my name or get insurance on it to protect my asset, as I said, I did not take possession of the vehicle. In XXXX, three months after the close of the loan, the free and clear title to the vehicle showed up in the sellers name and mailbox. I notified the bank of their error, and as I said they did nothing to correct it. The car was severely damaged while parked in the sellers driveway when a tree fell on it, caused by heavy winds during a major California fire that lasted from XXXX to XXXX. The seller died XX/XX/XXXX. As a lienholder on a loan banks always protect their security interest by requiring insurance on vehicles before they pass title to them ; but the bank did not do this because they made an error and passed title to the seller, free of all liens. 
The loan payments are current and are being automatically deducted from my U.S Bank account monthly in the amount of {$200.00}. I signed up for auto draft to get a reduced payment. I have several accounts at U.S Bank and if I close the account to try to stop them from deducting my payment, they can deduct it out of another account. My husband and I are XXXX XXXX XXXX, and therefore rely on our good credit rating. We have XXXX XXXX XXXX and their attorney at XXXX XXXX sent three demand letters to the bank asking them to rescind the note, refund my payments, and report to the credit agencies that the loan was paid as agreed and in full since they erroneously gave away both the banks interest in the vehicle and mine to a third party ( attachment 5 ). 

In response to the attorneys demand, the bank issued a letter dated XX/XX/XXXX,  stating that the transference of the title to the vehicle was the seller and buyers legal responsibility ( attachment 6 ). This would be the case if it were an unsecured loan. The loan agreement in attachment 1 clearly states that the vehicle, a XXXX XXXX XXXX XXXX is the SECURITY INTEREST FOR THE LOAN. This means that the bank should have been listed as the lienholder on the title. The bank was holding the title and erroneously issued it to the seller, free and clear of all liens. It was not the legal responsibility of the seller and buyer to establish the bank as the lienholder on the loan, secured by the car. It does not even make good business sense for a bank to shift the legal responsibility of transference of the title to the seller and buyer and entrust them to put the bank on title as the lienholder after they have paid out the funds on the loan. Furthermore, the bank is legally responsible to issue me free and clear title once I pay off the loan, secured by the vehicle, which they will not be able to do. 
After I received this letter from the bank, XXXX sent me to an outside attorney since they will only represent me as a defendant in a case. The outside attorney sent two letters and made several phone calls, requesting someone at the bank contact him ( attachment 7 ). No one at the bank has contacted him and he is now asking for {$10000.00} to enter into a lawsuit on a loan with an original loan balance of approximately {$11000.00} ( attachment 8 ). Bank attorneys know that no one can afford {$10000.00} in attorneys fees to fight an {$11000.00} loan. So even though they are well aware at this point of their error, they do not have to respond or resolve it. They just keep deducting the payments from my account. 
We finally had to purchase another car. Coincidentally, our new auto loan was placed with U.S. Bank. However, on this loan the bank is holding the title to the car until the loan is paid in full. They did not erroneous issue it to the seller, free of all liens, relying on the seller to transfer it to us and put the bank on the title as the lienholder after the funds were released. Additionally, the bank required us to have insurance so their asset was protected from loss. Banking rules, regulations and procedures are supposed to be the same by law for all customers. The banks error has put me in a financial hardship, trapped in debt with a loan secured by a vehicle that was damaged and that they gave away to a third party. Their error has me paying on a car that I can never own and would not want to own at this point. 
U.S. Bank touts as their registered trademark on their online banking site and in the signage in their banks : Were proud to be named a XXXX XXXX XXXX XXXX XXXX. I do not know what group gave them this name ; they do not say ; but if I knew, I would send them a copy of my complaint. The bank is certainly not being ethical in dealing with me. They are well aware of their error and are defrauding me by making me pay for a vehicle that they gave away to a third party and are ignoring my attorneys attempts to contact them. I am desperate and have exhausted all of my limited resources and am seeking immediate relief and your help to resolve the financial entrapment the bank has me in. Can you help me please? Thank you. 
LIST OF ATTACHMENTS 1. Loan Agreement between U.S. Bank and XXXX XXXX, the borrower, secured by XXXX XXXX XXXX XXXX. 
2. Title sent to seller, XXXX XXXX, with letter from U.S. Bank, stating it is free of all liens. 
3. Email from XXXX XXXX, assistant Vice President and Branch Manager of U.S. Bank dated XX/XX/XXXX, asking me to bring in the title so the bank could perfect their lien. 
4. Envelope dated XX/XX/XXXX, which contained the loan agreement dated XX/XX/XXXX, in attachment 1. 
5. 3 demand letters from the Attorney at XXXX to U.S. Bank. 
6. Response letter from U.S. Bank dated XX/XX/XXXX, stating that the transference of the title to the vehicle was the seller and buyers legal responsibility. 
7. 2 letters sent from Attorney XXXX XXXX to U.S. Bank, requesting someone to contact him. 
8. 2 emails from Attorney XXXX to me, regarding his inability to get a response from the bank and that it would costs me {$10000.00} to fight them.

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