Consumer complaint received 2019-02-13
Company: U.S. BANCORP
State: CA
Product: Checking or savings account
Sub-product: Checking account
Issue: Problem caused by your funds being low
Sub-issue: Overdrafts and overdraft fees

Complaint:
When I signed up for banking with US Bank in XX/XX/2018, I said 'no ' to overdraft protection. This was presented to me as a blanket option, under which all transactions made against my credit card, debit card, and checking and savings accounts would be denied and I would therefore not be charged a fee. On Friday XX/XX/XXXX, I made 2 mobile deposits to put money into my checking account in preparation for a credit card payment I wanted to make on Saturday XX/XX/XXXX. The balance in my checking account after these deposits was {$4800.00}, and I submitted a credit card bill against that checking account for {$3600.00} on Saturday XX/XX/XXXX. I was unaware that the other user on the account also submitted a credit card payment against the checking account for an amount of {$2400.00} on Saturday. On Monday XX/XX/XXXX, the bank paid the other user 's credit card bill of {$2400.00} and then overdrafted my payment of {$3600.00}. The bank did not attempt to make the payment against my credit card bill, and yet the amount of {$3600.00} was taken out of my account and then returned on Wednesday XX/XX/XXXX, in addition to an overdraft charge of {$36.00}. I called US Bank on Tuesday XX/XX/XXXX to address the issue with them and asked why I had received an overdraft fee when I had said 'no ' to overdraft coverage when I created the account. While on the phone with the customer service representative, XXXX/XXXX, I read from the agreement I had signed with the bank, which stated that : " ... if you have chosen No you will not be charged an Overdraft Paid Fee. '' She responded to me and said : " Yes, we have customers confused about this and calling to us often ... '' and then proceeded to explain that the charges were allowed under a bait and switch tactic, in which the bank allows you to choose 'No ' when you first sign up, but fails to mention that you must specifically request 'No ' for overdraft protection on certain accounts in order to avoid the charge. The way that this was explained to me was very disheartening. I try my best to understand my finances and make knowledgeable choices about my financial health. I have never missed a credit card payment before and the credit card company dropped their own returned check fee when I called them. Since the bank is trapping many customers in this loophole concerning overdraft fees on certain accounts - even after customers have specified 'no ' - I believe they should refund my {$36.00} and discontinue this malicious and misleading practice. If I had known that my 'no ' didn't cover all of my accounts from overdraft fees, I would have kept saying 'no ' until it did. Before I got off the phone with XXXX/XXXX, I asked her to please extend my 'no ' to any account that hadn't been covered the first time I declined overdraft coverage. Thank you very much for your assistance.

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