Consumer complaint received 2020-11-11
Company: U.S. BANCORP
State: TX
Product: Credit card or prepaid card
Sub-product: Government benefit card
Issue: Problem with a purchase or transfer
Sub-issue: Card company isn't resolving a dispute about a purchase or transfer

Complaint:
To begin with, you do not have a category that describes my issue. I am a recipient of unemployment benefits and I have Reliacard distributed through U.S. Bank to receive cash disbursements. Last week, the bank abruptly blocked access to my account not allowing me to make purchases, make payments, or take cash withdrawals. I was told the block was based on the fact that fraud is a real problem in the world, and they wanted to make sure my account was legitimate. To prove that there was no shenanigans and that I am who I say I am, they demanded that I send over a " selfie '' of myself and a copy of my government ID so that they can prove it's me. In all honesty, I felt extremely violated. I felt as if I were being electronically XXXX by U.S. Bank. My right to privacy didn't matter to them because I am classified as a customer receiving government assistance. However, because my only source of income was being held XXXX, I reluctantly sent over what they demanded of me so that I could have access to the money they blocked and get my life back. At this point, it has been a week since they have denied me access to my money. I have called the call center daily and I am frequently told to be patient and wait because they will eventually review and update my account. While they have absolutely no regard for my need for money, I have began accumulating late charges on my bills and I am completely without any resources to purchase food or gas for myself. I've had to make payment arrangements with my creditors and the family I live with ( otherwise I have to sleep in my car ) just to stay afloat due to this issue, but when I call, they have absolutely no sense of urgency about my ordeal. 

One of their call center agents told me earlier this week that I shouldn't feel bad because I am not alone. the agent went on to say that U.S. Bank routinely blocks thousands of unemployment recipients at a time for suspicion of alleged bank fraud and forces them to ID themselves. I was extremely disturbed by this information. Not only does it prove the bank 's contempt for financially disenfranchised people by blocking their only means of income at their most vulnerable time, it also confirms the horrible management U.S. Bank currently has in place. If they routinely block thousands of customers each week from their card access and are consistently short-staffed to where there is an average one hour wait time to speak with a phone agent and it takes a week to be granted access to your own funds that should never have been blocked to begin with, you are subjecting thousands of people to homelessness, starvation, and even more debt due to unnecessary charges, all while they take a week to figure out if the selfie matches the account holder. This is a huge sign of gross mismanagement. Why in the world would they burden a call center and the fraud department with unfounded claims of fraud when they lack the manpower to handle the response? This indicates an extreme level of incompetence. Vulnerable people are being subjected to late charges, missed rent and car note charges, lack of resources for medical emergencies, and abject hunger simply on the whim of U.S. Bank.

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