Consumer complaint received 2019-08-05
Company: U.S. BANCORP
State: MN
Product: Checking or savings account
Sub-product: Checking account
Issue: Managing an account
Sub-issue: Problem using a debit or ATM card

Complaint:
On Saturday XX/XX/XXXX I called US Bank to inform them that I had been scammed and to not pay a debit card transaction that would try to come through. I purchased tickets on-line and used my debit card to send the seller money through a mobile app called XXXX. It was the first and only time I used the app. You enter in your debit card number without a pin and enter in the seller information and it will charge your card and transfer the money. I initiated the transaction at XXXX XXXX on XX/XX/XXXX. It became apparent very quickly after entering in my debit card and sending the money that it was actually a scam. I tried to contact the seller through text and by calling and tried to cancel the debit card ( used as a credit card as no pin was entered ) transaction on the app, but it wouldn't allow it. I contacted XXXX  customer service via the app and then contacted US Bank at XXXX XXXX, which was only 30 minutes after the transaction occurred on Saturday XX/XX/XXXX and it was quite apparent that it was a scam as the seller did not respond to any means of communication. I told the customer service rep at US Bank that it was a fraudulent person and a scam and to please not allow funds to be transferred. She said that there was nothing they could do until the transaction actually posted to my account as the money had already been sent. I said there has to be a way for you to flag/stop that from happening as it's a Saturday and funds are not settled on a non-business day. She again said there was nothing US Bank could do to help me until it posted to my account and the money had been debited. She instructed me to monitor my account and once it posted to contact them again. 

I watched my account and on XX/XX/XXXX the transaction posted, so at XXXX XXXX I called and filed the dispute. The person took my information and then asked if I had any questions. I said yes, I have copies of e-mails and police report, etc, how do I get this information to you. They replied that if during their investigation they need it, they will send a letter requesting the documentation. I never received a letter asking for any supporting documentation. Roughly 7 10 days after filing the dispute I received a canned standard form questionnaire to re-explain the scenario. There was no request for documentation. Since it was a canned form and not specific to me or my dispute, I concluded it was just a formality. Since no request for documents was requested, I concluded that no supporting documentation was needed. I wrote as much as I could on the form, talking about dates and times of communication, etc. I figured that once they received the canned form back, if they needed the actual documents to support my statements they would ask, as the person on the phone stated when I filed the formal dispute on XX/XX/XXXX. I never received any such request for any supporting documentation. 

I heard nothing more until on XX/XX/XXXX ( came in mailbox over the holiday weekend ), I received the letter stating that US Bank was denying my dispute because I received a service. The next day I tried calling the direct dial number on the letter, it went directly to voicemail and I had no clue if the person was in the office, so I called the 1-800 number. After 13 minutes of sitting in queue I was finally able to speak to a person. The person wasnt actually able to help me, but he stated that he was updating the notes in the case to reflect that I did not agree as I did not receive anything from XXXX XXXX  and that I had e-mails and supporting documentation that was never asked for. He stated that he put that in the case and they would see it, probably before the end of the day. After not hearing a thing for two days, I called back on XX/XX/XXXX and left a voicemail on the direct dial number of XXXX from Cardmember Services. I finally received a call back later afternoon, XX/XX/XXXX. 

XXXX from US Bank confirmed what I already knew, based on the e-mail from XXXX, that US Bank never disputed my transaction with XXXX. They were never contacted! Based on what I was told by XXXX from Cardmember Services, US Bank made a determination of what the outcome would be solely based on the merchant name. They did not do any type of dispute with them as I had filed/requested, they did not reach out to me for any supporting documentation as they had closed my dispute without investigating. When I told her I had e-mails from XXXX  stating they would do all they could to assist me, she told me to send her the copies of documents I had and she would ask her manager if they could dispute it for me. They had to have it in a fax and not a secure e-mail, so I went into the XXXX XXXX branch of US Bank on XX/XX/XXXX and they faxed for me. I heard nothing, so on XX/XX/XXXX I called and left a message. She called back and left a voicemail later that day and said she had just received my fax and she would file a dispute. It took 10 more days of time ; 10 days from when US Bank XXXX XXXX faxed the information from one of their branches to Cardmember Services, for them to receive it and act upon it. This was now 37 days from when they were first contacted and notified that I was scammed. Sometime after XX/XX/XXXX they finally submitted to XXXX. XXXX denied the dispute as it had been more than 30 days and the customer had already transferred the money so they did not have possession of funds on account to credit me back. ( shown in attached " message from merchant acquirer '' ). I heard nothing from XX/XX/XXXX until receiving a letter on XX/XX/XXXX ( dated XX/XX/XXXX XXXX, 55 days of hearing nothing. If you go from the date of the letter, another 49 days passed without hearing anything, more than 90 days from when they were first contacted. No updates, nothing at all. I went through XXXX and XXXX statement cycles and almost the XXXX cycle ( will cut on XX/XX/XXXX ) and heard nothing therefore I thought this was taken care of and behind us. I first notified US Bank of the scam on XX/XX/XXXX and received the letter on XX/XX/XXXX. It doesn't seem right that they can drag their feet and not dispute right away and then take 49 days once they do finally get around to disputing without any type of notification that it was still pending. 

Attached you will see my e-mails from XXXX on the very day of the transaction and then again on XX/XX/XXXX. Both state that they would love to help me and do whatever they could to assist but my bank had to dispute it. They couldn't just debit the customers account without cause. Due to the fact they US Bank did not submit a dispute to XXXX in a timely manner, I was not able to successfully dispute my debit/credit card transaction. In the 37 days that US Bank took to dispute it, the scammers funds were released to them to be able to withdraw. If US Bank had processed my dispute in a timely manner, I likely would not be out {$200.00}. XXXX likely would have had additional options to assist, perhaps hold funds pending proof from the seller, which would never have come as they did not transfer a thing to me. I was not aware that the bank could determine which disputes they were going to investigate and which ones weren't worth their time. They did not investigate or dispute my transaction for 37 days from when they were initially contacted about the scam. In no way is that a timely manner. They also did not investigate on their own, I had to call multiple times to insist that they act on my behalf. As the e-mails from XXXX state, they couldn't work with me to dispute my bank had to dispute on my behalf. They did not dispute on my behalf for 37 days from first being notified and only after being contacted multiple times. 

Every situation is different, they should not have assumed that my outcome would be the exact same as others. Did others contact XXXX within minutes of the transaction, were others transactions done over the weekend? Did others have concrete proof that they never received what they had purchased? They made a blanket determination without ever asking for or receiving supporting documentation. I used my debit card in good faith to make a purchase, I was not trying to get by with anything. I was not trying to use my card to receive goods and then try to get my money back. I was scammed and as my financial institution, they should have done everything possible to help me. Instead of doing that, they acted as if I was trying to get by with something and they did nothing. I had to contact them multiple times after they first closed the case to get them to actually do any type of investigation and dispute the transaction with XXXX. I feel very strongly that there would have been more available options for me, other than just being out of luck, to get my money back from the scammer, had US Bank acted sooner. Had they immediately investigated and disputed my transaction and nothing came of it, I would have accepted it.

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