Consumer complaint received 2022-10-20
Company: U.S. BANCORP
State: OR
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Fees or interest
Sub-issue: Problem with fees

Complaint:
Business credit card issued to a women and minority owned small business. We had not applied for credit before. In business XXXX full years. Our first billing cycle was XXXX XXXX, so right before Covid. In XXXX and again in XXXX of XXXX we called the company trying to enroll in an automatic payment plan, after being assessed {$39.00} both months in late fees. In XXXX we asked to have the account placed on auto-pay. In XXXX we wanted to know why it had NOT happened. My recollection is that we were told that it took an entire billing cycle before going into effect. By the XXXX billing cycle, Covid had resulted in a lock-down. Our business was closed, and when we were able to reopen, it was only XXXX hours a week, kept open by a new employee willing to do so. I handed the entire operation to our son-in-law to handle at that time, being past XXXX and ordered to stay home. I caught up with the credit card in XXXX of XXXX, when business mail began to be delivered to me, after our business failed. Doors closed XX/XX/XXXX. By XXXX, our son-in-law had left our family for a new one, having taken the business records with him, but leaving me some significant bills. On XX/XX/XXXX, I called US Bank where we had our business checking, concerned that our online banking showed the account {$700.00} overdrawn. I was upset and felt helpless, as I had not concerned myself with the financial part of the business. The bank informed me that I could close the account, and I did so. The credit card showed XXXX and I can only surmise that this was because no payment was owing. I remember being relieved that my son-in-law had paid off the credit card as he had promised to do. The auto-pay in XXXX was denied, as I had closed the account. By the time the bills caught up with me, our daughter was involved with Family Court regarding matters of child custody, child support, and parental visitation. I frankly, could not deal with more. I certainly did not want to increase the stress and danger involved in such a fraught situation. I wondered if this bill was now my responsibility alone. I learned later that it was, and that the bill had been sent to collections. I contacted the debt collection company and requested the history of the account. I agreed to begin making monthly payments to them on a balance close to $ XXXX. Yesterday I attempted to make the case to the credit card company that our account should have been placed on auto-pay no later than XXXX of XXXX, and asked for the phone recordings as proof. I was told that auto-pay cant be set up by phone, and that the phone record was unavailable now. What happened in our case is that nearly {$2000.00} in fees and interest were charged to usI believe before auto-pay was finally instituted by my son-in-law and commenced in XXXX of XXXX. Then the company made auto-payments until XXXX of XXXX. We were charged XXXX XXXX interest on a balance that reached our credit limit during the Covid pandemic. Yes, I take responsibility for the debt. No, I have no source of cash to settle, although the debt collector offered a settlement for XXXX XXXX of the balance. I contend that if we were helped through the auto-pay process which we tried twice to institute, I would not be facing such a devastating debt because we would not have been socked with the XXXX XXXX interest rate. That is my complaint. I just read in the news about the 5th circuit court declaring the agency unconstitutional. Obviously, people need help, and I hope the ruling is over-ruled!

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