Consumer complaint received 2024-01-19
Product: Credit card — General-purpose credit card or charge card
Issue: Problem when making payments — Problem during payment process
Company: U.S. BANCORP (CA)

Hello, I am here because I have no where else to turn and would like your help. 

I possessed a Union Bank credit card that I rarely used. Unbeknownst to me, when Union Bank was acquired by U.S. Bank, I did not receive any notification about the transition. Upon attempting to access Union Bank 's website to pay and check my balance, I discovered it was no longer functioning. Realizing the account had converted, I reached out to U.S. Bank to settle my account. To my surprise, they informed me that I couldn't pay online or over the phone until I received the new credit card. 

Expressing concern about potential negative impacts on my credit, the customer service assured me that everything would be fine and advised me to call back once I received the new card. When the new card arrived, I promptly paid the outstanding balance of approximately {$50.00}. I learned about late fees on the account, but the bank agreed to revert them due to issues converting new customers. Despite their reassurance, I discovered in XXXX that a late payment had been reported on my credit, resulting in an XXXXXXXX  drop. 

I sought assistance from card member services, visited a branch for guidance on dispute resolution, and handwrote two letters on resume paper to U.S. Bank expressing my concerns. Unfortunately, I received generic responses requesting more information. Subsequent attempts to resolve the matter through XXXX and XXXX disputes proved unsuccessful as they confirmed the accuracy of the reported information. 

Here is a copy of the letter : " To Whom It May Concern, This correspondence is in reference to the conversion process of Union Bank members to US Bank members. I was instructed to rewrite this letter as the first was sent to the wrong department. US Bank associates have informed me that, with the notes in my file, this letter will find the correct avenues. Please read the following description of events and forward to the appropriate department. 

My name is XXXX, and I want to first thank you for taking the time to read this letter. I recently pulled my XXXX and XXXX credit report and discovered I have a late payment that was reported on XXXX XXXX for my credit card account ( XXXX  ). Originally I was a Union Bank customer and had a credit card account with them. When US Bank acquired Union bank I was not notified of any change that was occurring. Upon realizing the change occurred, I contacted US Bank to try and pay off the balance of my credit card and was informed that I would not be able to do so without a new US Bank credit card, nor would I be able to log into my new account on US Banks website. Once I received my new card from US bank, I promptly called to settle my account. At the time they told me there were late payment fees on the account, but because of the mistakes they were having with new Union Bank customers they would happily remove the late fees. I paid off the existing balance of my card ( < {$100.00} ) and expressed my concern about having a late payment reported to the credit bureaus, the associate assured me that there would be no negative report concerning my credit and if any negative report did occur I could call US Bank back and have it reversed. 

Upon realizing there was a late payment associated with my US Bank account I called to have it reversed, the associate and their supervisor advised me they did not have the power to do so, but agreed that there should not have been a negative report in the first place. I was told to write a letter and reference that everything was paid as of XX/XX/XXXX. 

Up until US Banks acquisition of Union Bank I had an on-time payment history. I've resumed keeping my account in good order since the initial mishaps with onboarding new customers. Additionally, I have a perfect payment history with all my creditors and this has negatively affected my credit score. 

Based on my otherwise spotless payment history, and the circumstances that befell us during the transferring of accounts, I would like to request that you apply an adjustment to remove the late payment mark from my credit report. Granting this request will repair the damage caused by the complications of the US Bank/Union Bank merger and help me improve my overall credit history and correctly demonstrate my consistency as a creditworthy borrower. 

Thank you in advance for your consideration and time, Mr.XX/XX/XXXX '' While acknowledging my late payment, I firmly believe it could have been avoided with proper communication, such as a bank statement or welcome email from U.S. Bank, or the ability to pay my bill over the phone post-merger. Considering the impact on my credit score, I decided to reach out to the CFPB. I have always been a responsible borrower, and I find it disheartening to have this blemish on my credit. Any assistance you can provide would be greatly appreciated. Thank you in advance.