Consumer complaint received 2023-03-05
Product: Payday loan, title loan, or personal loan — Personal line of credit
Issue: Charged fees or interest you didn't expect — 
Company: U.S. BANCORP (ID)

In XXXX, we took out at home credit loan from XXXX  XXXX XXXX XXXX. At a banking interaction with US Bank, the bank representative sold us on what appeared to be a better home credit deal through US Bank. He convinced us that the US Bank loan was a better deal for us. Weve attached emails from XXXX and XX/XX/XXXX that show details of what we understood the US Bank home loan to entailed. You can see through the emails that the US bank representative misunderstood aspects of the loan and never mentioned the loan had a variable interest rate ; however, we thought the loan did save us money so we decided to switch to the US Bank loan. The representative quickly went through the loan details with us during the signing. Our understanding was that the loan had an initial XXXX % percent interest rate for XXXX months then moving to a fixed rate of XXXX % for the remainder of the loan. We verbally confirmed with US Bank representative during the signing that the loan was fixed rate. 

In XX/XX/XXXX, we realized our loan payments had increased. We emailed both our US Bank branch XXXX and the representative who sold us the loan. See attached email dated XX/XX/XXXX. Neither of them responded to the email, so we followed up by phone call. The branch XXXX explained over the phone that the loan we signed was varied interest rate, only USBanks profit was fixed, and made no effort to correct the situation. We were shocked and frustrated at the admission of our loan rate being variable based on federal interest rates. We have excellent credit score and would not have agreed to US Banks loan if we had known it was a variable interest rate. 

Continuing to try to find a more sustainable solution, we called US Bank to explain that we were misled about the interest rates and ask for a solution prior to the next anticipated XXXX XXXX XXXX increase that would take effect on XX/XX/XXXX. We spoke with the USBank representative who sold us the loan on XX/XX/XXXX and he said he had been confused about the loan and that he would also be upset about the huge rate increase that led to a huge increase in our monthly payment. He told us he would make it right and work with the bank underwriter to lock in our loan at a lower rate. We attempted multiple times to follow up with him on his phone and through the bank branch, but we never received a return call. 

On XX/XX/XXXX, we sent the US Bank representative an email regarding the situation and we copied the loan underwriter as well as the US Bank XXXX XXXX XXXX XXXX. Attached are the emails showing that, even though we were misled on the interest rate, US Bank is not doing anything to correct the situation. We are currently paying an additional {$1100.00} a month on our loan because we were misled about the conditions of the loan and the details of the loan were not adequately explained during the signing. 

We want US Bank to return our loan to the XXXX % rate and lock in this rate as we were never informed that it was a variable interest rate and clearly the US Bank representative was confused about the details of the loan. Furthermore, we want to be refunded by US Bank for all additional payments above the 3.25 % interest rate.