Consumer complaint received 2022-09-06
Company: U.S. BANCORP
State: UT
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:
Facts : I have been a customer for literally decades, for the past two years they have been our primary provider of services for a general-purpose credit card for myself, my wife, and our XXXX children as I've tried to simplify/minimize how many financial institutions I interact with. 

On or about the XXXX of XXXX, and with no warning or any explanation, our account was permanently closed. 

XX/XX/XXXX 's payment was returned XXXX. 

Why? I can tell you exactly why the last payment was made late. Typically, when you go onto their website the day your payment is due, and make said payment by the cutoff, those funds will then be pulled from your designated/linked funding account the following day. In my case, my payments are typically made right on the XXXX ( due date ), and the funds come out of my checking account on the XXXX, like clockwork ( or the following business day ). 

Since this was my first time for the automatic payment, I had set it up for the due date, the XXXX, and so would have expected the XXXX request to be submitted that day and then would have pulled from my checking account on the XXXX. However, that was not the case, they pulled on the XXXX and I had not yet transferred funds and it was therefore returned NSF. 

This difference in timing of pulling funds .is 'unfair and deceptive '. Just like the due date never changes, why would the date change for when the payment would pull? 

As soon as I noticed this, I immediately called and submitted a new replacement payment of {$17000.00} which cleared no problem on XX/XX/XXXX ( only delayed due to the weekend in between the dates of the original payment and the second payment ). 

During this time our cards were no longer working, while traveling and the holiday, and my kids on their own, so I had called Fidelity to find out why ( it took multiple LONG calls/wait times, to finally get an answer ) and they said due to the large, returned payment the card had a temporary hold until XX/XX/XXXX. Rewards from XX/XX/XXXX - XX/XX/XXXX were available and could have been cashed out as they were 100 % earned. Fidelity 's default setting is to pay you your rewards out each month, normally I would have been paid these points, and accordingly- they were 100 % earned based on their normal/standard practice and all of a sudden saying they were no longer mine is yet another way they have been unfair and deceptive. 

On XX/XX/XXXX our cards were still not working so I called to find out why they still were not working and THEN ( never before had I any reason to believe or be led to believe this was nothing more than a temporary hold ) was told my account was permanently closed and I was in complete shock and dismay as to why. This caused, and is still causing, myself, my wife, and each of our XXXX children who all had linked cards and impacts each of our credit reports/scores. 

If they dont want me as a customer, fine, but I'm due an explanation as to why because Im about as good a credit risk as you could ever find. Having one NSF payment, which was immediately corrected, and as I mentioned is as much their fault as mine, does not seem like it warranted closing my account. 

In addition to the problems this created financially, and the ongoing problems with all six of our credit reports, they also stole over {$1300.00} worth of rewards I had 100 % EARNED and now they are just gone. 

Had they told me in the beginning that my account was under review for potential closure, as opposed to just being temporarily suspended until XX/XX/XXXX due to the XXXX  I could have cashed out these rewards/applied them to my outstanding balance, but they gave me NO reason to believe that this was anything other than temporary. 

They are still 'adding & subtracting ' rewards for trailing activity, as represented most recently by my recent statement ( XX/XX/XXXX - XX/XX/XXXX ) showing a " Rewards Points Balance '' of XXXX. 

These rewards should absolutely be paid out to me because the bulk of them were all earned long before this late payment. I do expect a straight answer as to the reason my account was closed and how my family has all of a sudden lost our main source of access to credit for our daily needs. 

I ultimately want this account restored, but at a minimum I want my rewards that had were 100 % earned and eligible for withdrawal and/or statement credit or I will continue to fight this either with legal counsel or mediation. 

Sincerely, XXXX 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