Consumer complaint received 2020-10-19
Company: U.S. BANCORP
State: FL
Product: Credit card or prepaid card
Sub-product: General-purpose prepaid card
Issue: Problem getting a card or closing an account
Sub-issue: Trouble closing card

Complaint:
U.S. Bank issued me a secured credit card in XXXX of XXXX, secured by my deposit of {$500.00}. 

In XXXX of XXXX I contracted Covid-19 and enrolled in U.S. Bank 's coronavirus assistance program. I enrolled in a similar program with 6 other financial institutions, each deferred my payments, but U.S. Bank did not and that was not understood clearly by me, because this was in the early days of relief programs and the account representatives weren't well-versed at the time and my representative didn't clearly explain. 

My XX/XX/XXXX statement had a balance of {$520.00}, with a {$220.00} minimum payment due on or before XX/XX/XXXX. The statement closing date was XX/XX/XXXX. On XX/XX/XXXX, I made the minimum payment of {$220.00} leaving me a credit amount of {$210.00}, which would be sufficient to pay my health insurance. U.S. Bank says it sent a letter on XX/XX/XXXX ( which I did not receive ) notifying me that my account was closed for non-payment. 
After I made the {$220.00} payment on XX/XX/XXXX, ( 3 weeks before its XX/XX/XXXX due date ) and knew it was posted I tried to process the insurance payment but my card was declined. So, I called U.S. Bank and the representative informed me the account had been closed. This was a shock to me because I had talked to a representative on XX/XX/XXXX and was not advised the account was closed. At this time I was also still suffering and impacted by the coronavirus. 

U.S. Bank admitted there was confusion in the explanation of my coronavirus relief terms so they reversed the following interest charges : XX/XX/XXXX Interest Reversal - {$8.00} XX/XX/XXXX Interest Reversal - {$8.00} XX/XX/XXXX Interest Reversal - {$7.00} After making the {$220.00} payment and reversal of the 3 interest charges above, that left me with and outstanding balance of {$280.00} and I was told in a XX/XX/XXXX phone calle that I would receive a check for {$210.00}, the difference of the {$280.00} and my {$500.00} deposit. 

U.S. Bank also said at that time that the process was a 60 day process because they had to make sure that there were no outstanding charges on the account. However, pursuant to the terms of their coronavirus relief U.S. bank wouldn't allow any charges to be made on that card going back to XX/XX/XXXX - so it was impossible that there could be any charges made, even recurring charges ( but there were none ) wouldn't be allowed to process under their own coronavirus relief terms. 

The account was closed on XX/XX/XXXX. In addition to a 30 days late payment posted with the credit bureaus ( when supposedly under coronavirus relief ) after having made the XXXX statement payment of {$220.00} 3 weeks before the due date, I also have still not received my check for {$210.00} as of XX/XX/XXXX. 

I called U.S. Bank on XX/XX/XXXX to see when I might be receiving my check, and was told the same story about 60 days to process. However, after calling U.S. Bank today, on XX/XX/XXXX, the U.S. Bank representative told me that the order to process the check had never been made. Supposedly, that was going to be handled today. 

In the meantime, U.S. Bank has charged me the following below amounts on my card, even though the card was closed, and in XXXX I was advised I would be receiving a check for {$210.00}. Again the account was closed on XX/XX/XXXX. How is it is possible that they have not issued a check for my deposit after nearly 4 months, importantly when they know there has been no charges on my account. 

XX/XX/XXXX Late Fee - Payment Due On XX/XX/XXXX - {$40.00} XX/XX/XXXX Interest Charge On Purchases - {$4.00} XX/XX/XXXX Late Fee - Payment Due On XX/XX/XXXX - {$29.00} XX/XX/XXXX Interest Charge On Purchases - {$5.00} Secured cardholders such as myself, especially those impacted by Covid, are being taking advantage of by U.S. Bank. Delaying of issuance of deposits in order to generate late fee and interest charge revenues, whether intentional, non-intentional, software driven or otherwise, is taking advantage of the vulnerable that are trying to establish credit. With millions of secured card holders, the revenues that are being generated to U.S. Bank through delays in returning card holder deposits are likely very substantial, and their explanation that they are delaying returning deposits on accounts which were prohibited from making charges is at a minimum not convincing and a misrepresentation, in contradiction of their own terms and conditions. Bottom line, their process is flawed, perhaps intentionally in order to generate hundreds of millions of dollars in profit from late fees and interest charges.

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