Consumer complaint received 2023-03-06
Company: U.S. BANCORP
State: OH
Product: Checking or savings account
Sub-product: Checking account
Issue: Managing an account
Sub-issue: Deposits and withdrawals

Complaint:
US Bank has provided an very uneven and inconsistent experience with providing funds availability on business checks. Ive been a US Bank business banking customer for many years and Ive experienced very different funds availability over the years. Several times, including a recent event, Ive deposited a client check into a business banking account and US Bank has held the funds for significantly longer periods than appear to be justified. 

I have been a US Bank consumer customer for over XXXX decades and a business customer since XXXX, with a strong record, so there would appear to be little reason to suspect concerns on any specific deposit. On XX/XX/XXXX, I deposited a check via the US Bank mobile app. Upon making the mobile deposit, US Bank did not indicate any funds holding and the account available balance promptly reflected the deposit. It was the next day when I returned to the account that all deposit funds had been placed on hold. There are several reasons to be concerned by US Banks handling of this deposit. 

US Bank policy indicates that {$220.00} will be made available immediately, but that hasnt happened. See attachments with screen shots of the deposit date ( XX/XX/XXXX ) and availability as of today ( XX/XX/XXXX ). 

On XX/XX/XXXX, I spoke with a spoke with a US Bank rep and she could not provide specific details about the reason for the hold on funds. She did provide some general details about hold periods, but not specific to this deposit. The US Bank rep referred me to a department she referred to as eFraud department. Upon calling that department, a US Bank rep informed me the fraud department did not place a hold on these funds and the rep didnt know why a support rep referred me to them. 

Since the beginning of XXXX, I have deposited thirteen ( 13 ) checks from this same client and their same bank. Of those deposits, twelve ( 12 ) deposits were greater than {$5000.00}. None of those deposits incurred any difficulties in collection. Thus, the current deposit would not seem to merit any additional concerns about collectability. 

In reviewing Compliance with Regulation CC on the Federal Reserves guidance webpage ( https : //www.federalreserve.gov/pubs/regcc/regcc.htm ), Im concerned about US Banks adherence to regulation, at least in spirit even if not in any violation of the letter of the regulations. Below, I list regulatory expectations and comments about how US Banks actions. 
Regulation CC requires that financial institutions provide customers who have a transaction account with disclosures stating when their funds will be available for withdrawal. 
o While US Bank might have provided its terms previously and they might have them somewhere on their website, on XX/XX/XXXX, I asked a customer support rep to either send me the funds availability policy or provide a link to find them on the website. As of XX/XX/XXXX, I have not yet been provided the requested information. 

The institution is required to establish procedures to ensure that it complies with the requirements of Regulation CC and to provide a copy of these procedures to all employees who perform duties affected by the regulation. 
o XXXX XX/XX/XXXX, I contact US Bank customer support to get an explanation for the hold on my deposit. The rep had a general understanding of the funds availability policy, but was unable to provide details specific to my deposit or provide specific details regarding my questions about alternative deposit options. 

Regulation CC requires that financial institutions include a notice of funds availability. 
o Upon making the mobile deposit, US Bank did not indicate any funds holding and the account available balance promptly reflected the deposit. It was the next day when I returned to the account that all deposit funds had been placed on hold. I had no reason to question or take a screen shot the prior day, so I do not have documentary evidence, but US Banks systems would show the deposit history and when funds were placed on hold. 
o The funds were deposited on XX/XX/XXXX. As of today, XX/XX/XXXX, I have not received any notification, either through electronic communications or traditional mail, regarding any hold or funds availability timing. 

For checks of types not discussed above, funds generally must be made available in accordance with a schedule specified in Regulation CC. That schedule differentiates between " local '' or " nonlocal '' checks. Since there is now only one Reserve Bank check-processing region, however, there are no longer any " nonlocal '' checks for purposes of Regulation CC. Funds from local checks must be made available by the second business day following the day of deposit. 
o With the deposit on Tues, XX/XX/XXXX, the second business day following the deposit would be Thurs, XX/XX/XXXX. As of today, XX/XX/XXXX, none of the funds are yet available. 

The Expedited Funds Availability Act requires the first {$200.00} of a deposit that is not already subject to next-day availability to be made available by the first business day following the day of deposit. 
o With the deposit on Tues, XX/XX/XXXX, at least {$200.00} should have been available on XX/XX/XXXX. As of today, XX/XX/XXXX, none of the funds are yet available. 

If [ the institution ] decide to hold funds beyond the period specified in your institution 's general availability policy, you must give the customer a notice at the time of the deposit explaining why the funds are being held and when they will be available. If the deposit is not made in person to an employee of your institution or if you decide to extend the time when deposited funds will be made available after the deposit has been made, you must mail or deliver the notice to the customer not later than the first business day after the banking day on which the deposit is made. 
o The funds were deposited on XX/XX/XXXX. As of today, XX/XX/XXXX, I have not received any notification, either through electronic communications or traditional mail, regarding any hold or funds availability timing. 

Regulation CC permits financial institutions to delay, for a " reasonable period of time. '' Elegible exceptions exist. Any amount exceeding {$5000.00} may be held. Your institution must make the first {$5000.00} of the deposit available for withdrawal. 
o The deposit was made on Tues, XX/XX/XXXX. As of today, XX/XX/XXXX, none of the funds are yet available. 

Reasonable cause to doubt the collectibility of a check : Doubtful collectibility may exist for postdated checks, checks dated more than six months earlier, and checks that the paying institution has said it will not honor. The general criterion for doubting collectibility is " the existence of facts that would cause a well-grounded belief in the mind of a reasonable person '' that the check is uncollectible. 
o None of these conditions are present. Since early XXXX, we have made at least ten deposits Deposits into accounts of new customers ( open for less than 30 days ) : Next-day availability applies only to cash, electronic payments, and the first {$5000.00} of any other next-day items. 
o I have been a consumer customer for over XXXX decades and a business customer since XXXX, thus a new customer exception does not exist. 

Please review the case history, feel free to request any additional information or clarifications, and have US Bank explain their actions. Thank you.

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