Consumer complaint received 2017-10-17
Product: Vehicle loan or lease — Loan
Issue: Managing the loan or lease — Billing problem
Company: U.S. BANCORP (CA)

I have a car loan with US Bank. On XXXX XXXX, XXXX I mistakenly made a payment with an additional digit. My normal monthly payment is {$1000.00}. Due to my error I paid {$10000.00}. I contacted my primary bank on or around XXXX XXXX. XXXX XXXX to ask if they could stop the payment. XXXX XXXX was very helpful and explained the item had posted and that we needed to work with Us Bank. I called US Bank and asked for assistance. The representative was polite and stated she could fill out a claim. I waited two weeks and got a stock letter stating the claim was denied and to work with my primary bank XXXX XXXX. 

I then called XXXX XXXX representative, the representative explained how the funds should be managed and offered to call US Bank an stay on the line with me. We explained the error, and the US Bank representative was courtesy and helpful. She explained they would open a claim for the error and work to return the funds via a cashier check. She did explain I would have to make my normal payment of {$1000.00} so the funds could be returned without causing a past due bill. I made the additional payment on XXXX/XXXX/XXXX. 

After waiting 3 weeks for any check or response I contacted US Bank to follow up. I was told the claim was " closed '' and no further steps were required, and the representative advised me " well is n't it nice you do n't have a payment until XXXX/XXXX/XXXX, and maybe I should keep paying monthly and have the car paid off early ''. She basically ended the call stating that I made the error and that they could do nothing, and that I had no consumer rights. I find this confusing as the payment was sent via ACH and I believe Reg E provides protections. At this point I called my primary bank XXXX XXXX to see if they could file a claim on the ACH Item. They explained that they could not do so, but once again asked me to stay on the phone and contacted the resolution department at US Bank. The operator was courtesy and helpful, and once again said - yes it is clear this is an error and you are current on your payments. She stated she needed to complete a claim and add additional information. We were on the line for approximately 30 minutes. At the end she stated to keep making my monthly payments and that I should expect a check mailed to my home in 2 weeks or so. 

On XXXX XXXX I received a letter from US Bank. The signature is from XXXX XXXX a loan and lease specialist in the Consumer Loan and Lease Operations area. The letter basically states that the amount is to high for them to do anything with to work with my originator. 

This is simply unacceptable, US Bank has held my XXXX for almost 3 months. They have repeatedly stated " keep making payments '' even if not due and we will return the funds. Personally the pressure to keep making payments that were not due to return the funds seems very much like a UDAAP issue. They have repeatedly stated the issue could be resolved ( if i provided more funds ) and then decided to decline it with no phone call - but a generic letter with no details. They are also very aware that I was working with my primary bank and we conducted three way calls to try and resolve. 

To be honest, I can live without the XXXX. My complaint is the way that the bank handled this and repeatedly mislead me to continuing making payments to insure the funds could be returned. Also, a recent PEW study highlighted how challenging it is for a large number of Americans to cover an unexpected expense. How would a lower income individual handle this situation? I can only wonder how many consumers make a innocent error in submitting an ACH payment, or Check payment or Bill Payment and have no recourse. My accounts are all in good standing with no negative items. 

I am requesting US Bank review their call logs and verify what the representatives stated on numerous calls. I am requesting that the CFPB consider if the practice of " keep making your payments monthly - or we ca n't return your funds '' is a UDAAP practice. 

Thank you for your time.