Consumer complaint received 2024-08-26
Product: Checking or savings account — Checking account
Issue: Problem caused by your funds being low — Overdrafts and overdraft fees
Company: U.S. BANCORP (MN)

Dear CFPB : I am filing this complaint to bring to the Consumer Financial Protection Bureaus ( CFPB ) attention the egregious and illegal overdraft fee practices of U.S. Bank, which have caused me significant financial harm and damage to my creditworthiness. 

In XX/XX/year>, I received a letter from U.S. Bank acknowledging that my account had been improperly charged {$900.00} in overdraft fees, which they have since refunded. This refund, however, represents only a portion of the harm I have suffered as a result of U.S. Banks misconduct. 

These illegal overdraft fees, totaling approximately 25 separate instances at {$36.00} per occurrence, were charged over a period that led to my checking account being overdrawn by {$50.00}. Due to the accumulation of these fees, U.S. Bank subsequently closed my account, leaving me unable to open a new checking account and causing significant damage to my credit score. 

I strongly suspect that I am not the only customer who has been subjected to these unfair and deceptive practices by U.S. Bank. I believe that a more comprehensive audit of my account and possibly the accounts of other customers would reveal a pattern of similar misconduct, extending beyond the six-month look-back period typically used in such reviews. 

It is essential that U.S. Bank conducts a thorough audit of my account to ensure that all instances of illegal fee charges are identified and refunded. The limited review that has been conducted thus far does not suffice to make me whole for the financial harm I have endured. Moreover, I request that U.S. Bank take full responsibility for the improper closure of my checking account due to these illegal fees and compensate me for the incidental damages this has caused, including but not limited to my inability to open new accounts and the adverse impact on my credit score. 

Additionally, my attempts to contact U.S. Bank by phone to seek further clarity on the nature of these illegal fees were met with deflection. I was told that I should instead contact the debt collection firm to which U.S. Bank referred my account after unlawfully closing it. This response further demonstrates U.S. Banks unwillingness to take accountability for their actions and provides yet another example of their egregious and unfair conduct.

I strongly believe that U.S. Banks actions constitute an actionable example of Unfair Deceptive Acts and Practices ( UDAAP ). Should U.S. Bank fail to fully cooperate with this audit and make me whole, I will be compelled to take legal action. I seek not only the full refund of all illegal overdraft fees charged to my account but also compensatory damages for the improper account closure and the significant incidental damages that have resulted.

I urge the CFPB to investigate U.S. Banks overdraft fee practices, as they likely reflect a broader issue affecting numerous customers. The CFPBs involvement is crucial to ensure that U.S. Bank is held accountable for these illegal practices and that affected consumers receive the compensation they deserve. 

Thank you for your prompt attention to this matter. 

Sincerely, XXXX XXXX XXXX