Consumer complaint received 2024-03-13
Product: Checking or savings account — CD (Certificate of Deposit)
Issue: Managing an account — Banking errors
Company: U.S. BANCORP (AZ)

On XXXX my mother, XXXX XXXX ( deceased XXXX ) went into US Bank and opened a few CD/s. on XXXX she went back with a $ XXXX cashiers check from another banks savings account to open another CD and the teller who was training, XXXX XXXX, accidentally checked the " Traditional IRA '' box on the document and also left off the beneficiaries. MY MOM PASSED AWAY XX/XX/XXXX. My sister, XXXX XXXX and I are full Trust and Will Beneficiaries ( equally ). ( I can supply those docs on request ). On XX/XX/XXXX my sister, XXXX XXXX and my step father, XXXX XXXX went to US Bank together to close out the CD at US Bank. This is when we found out the teller made a mistake with the paperwork, she admitted the mistake and the bank manager, XXXX XXXX admitted the mistake. They stated that since no beneficiaries were listed that her husband would be the only one to have rights to the CD. So my step father said fine i will just cash out the CD and give it to the girls. They had him sign a document, that they would not give him a copy of, and then after it was signed admitted that it was mistakenly done as a Traditional IRA and that tax implications would happen and he would get tax documents in the mail. THIS IS WRONG for so many reasons. 
1 ) my mom has no earned income, she can not have a Traditional IRA opened in XXXX XXXX ) even if she could open a Trad.IRA, she could not open with {$15000.00} as that is over the limit 3 ) US Banks own disclosure statements state they can not take a cashiers check to open a Traditional IRA it must be wired funds from a financial institution. 

we have asked for a Return of Excess Funds, as the whole $ XXXX should be returned as excess funds as she was not allowed to open an IRA. They refuse. 

My sister, XXXX XXXX has taken hours and hours off work to try and deal with the bank manager in person, as he said he would make this right- he saw the mistake. However since then he refused to speak with her about it, and the XXXX XXXX team says we have to speak with the Bank Manager as he needs to fix it, the XXXX XXXX team says either the XXXX XXXX XXXX or the Bank Manager has to fix it. 

We have contacted XXXX XXXX who is the DIstrict/Regional Manager for this US Bank location , he was to be very helpful at first - and now will not return calls. 

We have contacted the IRS who says the bank needs to fix this, as the IRS will penalize the estate the 6 % as she was not legally allowed to have a Traditional IRA. Not to mention the taxes we have to pay on it - again, as the money came from a savings account on years prior earned wages. 

I have spoken with the FDIC, CFPB and the OCC all of which tell us to file a complaint. I have filed a formal complaint with the US Bank District office. 

Bank Branch XXXX US Bank - XXXX XXXX XXXX, XXXX XXXX  CA XXXX - tele XXXX Bank Manager - XXXX XXXX - Direct line XXXX XXXX Teller - XXXX XXXX - XXXX XXXX US Bank Dis/Regional Manager - XXXX, CA Office XXXX XXXX XXXX XXXX XXXX Mother - XXXX XXXX XXXX XXXX Last four of SS # XXXX Acct # XXXX Please help us make this right