Consumer complaint received 2024-10-22
Product: Credit card — General-purpose credit card or charge card
Issue: Struggling to pay your bill — Credit card company won't work with you while you're going through financial hardship
Company: U.S. BANCORP (IN)

Re : Request for XXXX XXXX and XXXX of Terms I am writing to formally request a modification of the payment terms on my account XXXX. I remain committed to fulfilling my financial obligations in accordance with applicable laws and principles of good faith. However, I am currently facing significant financial hardship due to several factors, which I would like to outline below : XXXX ( which further communication has informed me that US bank is the parent company of the XXXX XXXX XXXX that this is through ) mishandling a fraud-related payment dispute : A fraudulent transaction on my XXXX credit card was mishandled, and despite my good faith efforts to resolve it, I was only reimbursed after escalating the matter to the Consumer Financial Protection Bureau ( CFPB ) and my state Attorney Generals office. This delay caused an unexpected strain on my finances, impacting my ability to stay current on my credit card payments with other creditors. According to Gonzalez v. Chase Manhattan Bank, N.A., 37 F.3d 1347 ( 9th Cir. 1994 ), creditors have a duty to investigate fraud claims in a timely manner, which was not met in this case. 
Recent approvals of 0 % XXXX XXXX XXXX : Several 0 % introductory interest credit cards were approved for me in a short timeframe. While this appeared beneficial at the time, it seems predatory in hindsight, as the rapid extension of credit has now ballooned my debt beyond my ability to repay. FTC v. AMG Capital Management, LLC, et al., 141 S. Ct. 1341 ( 2021 ) underscores the FTCs authority to address such unfair or deceptive lending practices, including those that trap consumers into unsustainable debt. 
Ballooning payment obligations : The expiration of these promotional 0 % interest periods has led to a drastic increase in my monthly payment obligations. This sudden escalation has made it extremely difficult to manage my finances. 
Failed business venture : I invested heavily in a business startup, partially using these credit cards. Unfortunately, the business has not yet produced positive financial returns and will likely result in a net loss of over {$50000.00} in its first year. This has severely impacted my financial position and my ability to meet existing obligations. 
Increased living expenses and inflation : Like many others, I have faced significant financial strain due to rising costs of living and inflation, without a corresponding increase in income. This has further exacerbated my situation and impeded my ability to keep up with debt payments. 
Total debt nearing {$1.00} million : I am facing debt from two mortgages, mounting medical bills, and substantial credit card balances, bringing my total debt to nearly {$1.00} million. Even if my entire income were directed toward these obligations, it would take over 10 years to repay them fully. 
Inability to qualify for a debt consolidation loan : Due to my ballooning balances and monthly obligations, I have been unable to secure a debt consolidation loan, which would have helped me obtain more favorable repayment terms. This is reflective of the growing number of consumers who are trapped in unmanageable debt without access to reasonable solutions, a situation recognized in Bumgarner v. Lite Cellular , Inc., 996 F. Supp. 525 ( E.D. Va. 1998 ), which emphasized creditors obligation to act in good faith when extending or modifying credit. 
Credit card interest rates : My current APRs are exceedingly high compared to historical averages. The exorbitant rates, coupled with the large balances, have made it nearly impossible to pay down the debt.