Consumer complaint received 2020-05-18
Company: U.S. BANCORP
State: FL
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Other features, terms, or problems
Sub-issue: Problem with rewards from credit card

Complaint:
I opened a credit card with Elan Financial in XX/XX/XXXX because of the advertised 2 % cash back on all purchases. Within weeks they cancelled it and refuse to pay the advertised 2 % cash back. They are presently in violation of civil code XXXX and they also failed and refused to send written notice of the cancellation. 

On XX/XX/XXXX I received a letter ( dated XX/XX/XXXX ) indicating that Elan Financial " believe that you have fallen victim to a credit card scam '' and thus the account has been closed to any further activity. 
That day ( XX/XX/XXXX ) I called and indicated that there was no fraud, I was not scammed, and I would like my account reactivated. They said it would be reviewed and I would be called with the result. 
I received no further contact on the issue. 

I did subsequently receive two things : A statement dated XXXX which I paid in full. 
A letter ( received XX/XX/XXXX ) indicating that I should call to activate my card. 
I called ( on XX/XX/XXXX ) and over the course of several torturous hours I was informed of the following : On XX/XX/XXXX the account was reviewed and based on the pattern of spending Elan Financial chose to cancel the account. That decision is final. Furthermore, cash back will not be paid on a closed account. 
They do not believe that they need to provide written notice of cancellation and they do not believe they have to honor their 2 % cash back offer. 

I pointed out that this violates California Civil Code - CIV 1747.85 which states : Unless requested by the cardholder, no card issuer shall cancel a credit card without having first given the cardholder 30 days ' written notice of its intention to do so Now, their original XX/XX/XXXX account suspension for fraud is consistent with XXXX. 
However! There was no fraud and the subsequent cancellation on XX/XX/XXXX for the pattern of spending is in violation of XXXX. 

Simply put : They have cancelled my card for nebulous and specious reasons which they refuse to put in writing. They will not even put the existence of the XX/XX/XXXX cancellation in writing. Finally, they refuse to pay the 2 % cash back that induced me to open the card in the first place. 


Their argument : Elan Financial can close the account immediately without written notice regardless of cause. As soon as the cancellation decision was made on XX/XX/XXXX, all unpaid cash back became null and void. 
My argument : They can not close my account until 30 days after written notice of the XX/XX/XXXX decision per XXXX. Within that 30 days, I may withdraw my cash back and that is what I am seeking. My 2 %. 

Note : Please distinguish between the XX/XX/XXXX suspension for fraud and the XX/XX/XXXX cancellation for pattern of spending. One is legal but irrelevant. The other is a gross violation of 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