Consumer complaint received 2016-10-25
Company: U.S. BANCORP
State: MN
Product: Mortgage
Sub-product: Home equity loan or line of credit
Issue: Settlement process and costs

Complaint:
Let this letter serve as my formal complaint regarding a loan through US Bank. US Bank is engaging in unfair and abusive practices that have caused and will continue to cause me actual monetary harm. 

The acts arise out of a 2nd mortgage my wife and I took out on XX/XX/2016. The transaction was completed at the XXXX Minnesota bank branch. The purpose of the loan was to refinance high interest credit card debt, into a low interest 2nd mortgage. The total amount of the loan was for {$25000.00} At the time of closing US Bank told me they would send the payment in to my credit card providers. I did not ask for an address for my credit card providers, nor did I offer one. They did not provide me with any payment options. They elected to send cashiers checks on XX/XX/XXXX. XXXX of the XXXX checks made it to my credit card providers without issue. The XXXX one valued at {$8800.00} did not. 

On XX/XX/2016, when it was clear that the payment had not cleared, I contacted the credit card provider and US Bank. The credit card provider did not have any documentation of receiving the cashiers check. US Bank has provided me with a letter they claim went out with the cashiers check, but no other proof that such payment ever made it to my credit card provider. I asked them to confirm whether the check had been cashed, they said they would look into it. 

On XX/XX/2016, I contacted US Bank, and again asked whether the cashiers check had been cashed, they got back to me later in the day and said that it had not been cashed. I asked them to stop payment on the cashiers check and reissue the check directly to me, to avoid additional delay in payment of my credit card bill. 

On XX/XX/2016, I followed up on the stop payment process. I was informed that I would have to sign a Declaration of Loss and Indemnity agreement in order for the process to be complete. I spoke to both XXXX XXXX and the branch manager, XXXX XXXX. XXXX assured me that the indemnification was n't a big deal, and that US Bank would not cash the funds if I signed the indemnification agreement. The declaration of loss required that I acknowledged that I loss the check. I did not sign this because it was factually untrue. I never had possession of the check, so I could not therefore lose the check. Im not even in a position to confirm or deny that US Bank actually sent the check to my credit card provider. Indeed, my credit card provider does not have any record of the check. The indemnification agreement would require that I indemnify US Bank if they happen to pay the funds of the cashiers check to anyone for any reason. I of course refused to sign that as well. 

Because I wont agree to sign a declaration of loss for a check I have never had possession of, and I wont sign the indemnification agreement, US Bank refuses to pay the remaining {$8800.00} owed to me under the mortgage agreement. It is my understanding that they may or may not pay the funds after a 90 day waiting period. They refuse to waive the interest for the {$8800.00} that they have not paid me. As a result I will be forced to pay {$120.00} over the next 90 days on funds that I do not have access to. Again I did n't ask US Bank for cashiers checks, I did n't even ask that they send them to my creditors for me. In addition to being forced to pay the interest on the US Bank mortgage for funds not received, I am still paying interest on the higher rate credit card, because they have not yet received the funds.

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