Consumer complaint received 2016-05-05
Company: U.S. BANCORP
State: KS
Product: Bank account or service
Sub-product: Checking account
Issue: Deposits and withdrawals

Complaint:
US Bank accepted a deposit of a {$7200.00} XXXX XXXX check at its ATM on XXXX/XXXX/XXXX for our checking account. Shelter 's issuing bank is XXXX XXXX XXXX Bank XXXX XXXX. On the morning of XXXX/XXXX/XXXX our online access account information showed the funds available. This check was to replace the total loss of our XXXX XXXX XXXX When we tried to buy a replacement vehicle, the transaction was denied. When we called US Bank customer service, we were told a Fraud alert was place on account but we could go to a local branch to have the funds released at the manager 's discretion. That XXXX branch manager, said it must be done by our designated home branch manager. That manager said it would need to be released by the Fraud department. 
The Fraud department told us they tried to call XXXX XXXX XXXX Bank XXXX to verify the funds. When the XXXX bank refused, as they were instructed by XXXX XXXX to refer the call to their Home Office, the Fraud department place a hold on our account for seven business days. 
After XXXX hours of customer service, fraud, and local branch phone calls, we were told the branch manager of our home branch had the power and discretion to release the funds. XXXX at the local branch said we needed to have someone from the issuing bank verify the funds. We had the XXXX XXXX Home Office manager in charge of clearing checks, XXXX XXXX, XXXX, talk to the local branch teller, XXXX and branch manager, XXXX, XXXX, to verify the funds. The XXXX bank called them as well. 
The branch manager, XXXX, told us she would not release the funds, even after the money was received from the issuing bank due to bank fraud concerns. 
In the meantime, our account remains suspended. The branch manager claims their action is for our own protection and their against fraud. We are new to their bank, less than a year, but the excuses we received make me shake my head in wonder. Because we are newer accountholders, and the size of the check is larger than previously deposited, and the fraud department made the security determination, they would not accept the assurances of the other bank, the insurance company or us that this was not a fraudulent transaction and used the protocol of holding funds to shield their actual discretion. 
Amoung the numerous calls we made and the in person experience at the XXXX branch, we were told the funds would be released on the XXXX, XXXX and then XXXX. They are sticking with the XXXX. 
US Bank is holding our funds hostage to prevent the purchase of the replacement car, groceries, and whatever else we might need for the principle of fraud protection. 
I own a home, I have my XXXX children, and my wife has her XXXX children. We are both employed. We previously transacted our banking with a credit union. The replacement vehicle is essential to our health, well being and employment. The implication of their anti-fraud effort is insulting and unnecessary. They obviously do n't want our business, but they also need to release these funds. XXXX XXXX already released the funds so they can not replace the check issued for this deposit.

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