Consumer complaint received 2020-02-13
Product: Checking or savings account — Checking account
Issue: Closing an account — Funds not received from closed account
Company: U.S. BANCORP (CA)

I have owned some bitcoin within the past few years and from time to time, I will buy and sell it to make some money on the side. So at the end of XXXX, I sold approximately XXXX BTC. I sold it using XXXX which is a marketplace where buyers and sellers of BTC and other cryptocurrency meet and conduct transactions. These are agreed upon transactions where BTC is held in escrow by XXXX until the money is deposited or transferred. I sold my BTC via XXXX, meaning the buyers of my BTC made payments to me using XXXX and the payments came into my U.S. Bank checking account. There were 6 XXXX payments that were made to my U.S. Bank checking account on XX/XX/XXXX. The amounts were : {$240.00}, {$2000.00}, {$1700.00}, {$2500.00}, {$2500.00} and {$350.00}. 


On XX/XX/XXXX, I received a phone call from XXXX, who is an E-Fraud investigator from U.S. Bank stationed out of Ohio. He called me from the phone number ( XXXX ) XXXX and left me a message stating he wanted to verify some activity that occurred recently in my checking account. I called him back and when questioned about the recent XXXX activity, I did not try and evade the question or hide the fact that I had sold some cryptocurrency. I was completely forthcoming and told him that I had recently sold some BTC that I owned. He told me that the reason why I was receiving the call was because there was an individual I had attempted to sell BTC to who was on their blacklist for conducting fradulent transactions involved with BTC. That particular transaction did not go through however because I'm sure U.S. Bank had blocked it. I had no idea that U.S. Bank had an issue with that purchaser whatsoever or else I would not have attempted to conduct business with them. 


It's important to understand how the marketplace XXXX   works. You have buyers and sellers of BTC for example who gather together to transact. Since I owned BTC and was looking to sell it, I simply have to click that I'm selling BTC and find a method of payment that is suitable for me. Since I had XXXX and it was instant and safe, I chose XXXX. Then once you click on XXXX as a payment option, various posts or advertisements pop up of individuals looking to purchase BTC. They have varying prices they are willing to pay and varying limits as well. I simply look for the highest paying individual and then you can begin the transaction. During this time, you communicate with the other party and I have provided the transcripts for each respective trade and the information provided by localbitcoin about the other party ( ie. their real name, what country they're located in, how long they've been a member of the localbitcoin community, etc. ) Another very important item to look for when trying to find a partner to transact with is their ratings. It's very much like ebay where it lists an approval rating as well as how many successful transactions they've completed. Someone with very few transactions, especially when it comes to purchasing BTC, is scrutinized and additional security measures are taken. All of the purchasers that I conducted transactions with have over 500+ successful transactions and positive ratings of 100 %. That means not even one of their transactions were ever disputed. 


So during my conversation with XXXX, he ends it by saying that U.S. Bank has decided to end its relationship with me. This was after I had told him that I had sold BTC and do so from time to time. I was extremely naive and didn't know how banks really frown upon crypto. He even made a remark that it appeared that I was trying to cash out my account. 
Two days earlier, toward the end of prior week, I had visited a branch to withdraw {$2000.00}. 
I needed that money for rent and my landlord prefers cash anyway. But that's neither here nor there, because that's my money and I can do what I like with my money. Anyhow, he also stated that it may take up to 10-15 business days for the account to closeout and I would be receiving confirmation in the mail. I was no longer able to transact on the account and he told me even my online access was no longer available to me. 


On XX/XX/XXXX, I followed up with XXXX because I wanted an update on the account closure. The address listed for my U.S. Bank checking account was a permanent address for a residence owned by my siblings and I. I, however did not reside at that address and was beginning to get leery of having to stop by everyday on my way home from work to check if my account closing check from U.S. Bank had arrived. I called XXXX and left a message. I missed his return call and he basically said that there was no update and that I just needed to wait patiently. 


I called the U.S. Bank customer service number XXXX XXXX XXXX XXXX on XX/XX/XXXX. I had now been driving daily to my XXXX XXXX address to see if the check had arrived and it had not. Mind you, this is 26 days after I had no longer had access to anything related to my U.S. Bank checking account. My debit card was deactivated, my online access, everything was deactivated or closed. I spoke to the customer service representative and she was very vague. She placed me on hold and spoke to a senior banker to find out further details about my account. She told me that there had been no activity or movement on my account since the XX/XX/XXXX. It was still in the process of closing and she then went on to explain how there are certain steps that need to occur when an account closes and that my account appeared to be stuck in the closeout process. She stated that my account did not have a home branch attached to it. This was due to the fact that the actual branch I had opened my account at had since closed down. Due to this reason, I was told that I would need to visit any branch of U.S. bank and speak to the branch manager and explain to them that I needed assistance in completing the closeout of my account. This was very alarming to me because my U.S. Bank checking account was my main checking account and it contained most of my money that I use for day to day living expenses. 


On XX/XX/XXXX, I called the branch located closest to where I currently reside. I called ( XXXX ) XXXX and spoke to XXXX. I explained the circumstances and told her that I just wanted to give the branch a heads-up that I would be coming in later that day. After I explained the situation to XXXX ( teller ), she asked for me to give her a few minutes to do some research and that she would give me a call back. She called back within the hour and told me that my home branch was the XXXX XXXX branch and that I would be receiving a call from the BM ( branch manager ) before days end. 


About 5 minutes passed and I received a call from XXXX, the BM at the XXXX XXXX location. She was extremely indignant and curt with me, almost to the point of being rude. She stated that her branch was the home branch and that there was no inclination for the bank to send me the proceeds of my account. Her manner and tone really took me off guard. I had had no negative interactions with U.S. Bank up until this point. Taken aback, I asked her why this was? She must have done some preliminary research on the account and she said that there were 5 or 6 checks in question that U.S. Bank was not comfortable with and that were most likely fraudulent. She said something to the effect of you may never see this money as it's tied to fraudulent activity. So quick distinction I'd like to make here is that I've never used checks and hadn't deposited a check in over a month. I proceeded to ask her about these checks in question and she answered by rattling off the amounts. The amounts she stated were in fact the exact amounts of my XXXX deposits that I described earlier. At this point in time, I attempted to correct her by telling her that they were in fact not checks, but XXXX deposits but she didn't care. In her mind, I was a criminal. She said until the back office receives confirmation from the other banks regarding these transactions, you won't receive any money back. This was a horrifying experience and upon ending our phone call, I was still in shock. The transactions I conducted were completely legitimate and within a few moments of time with XXXX, she had managed to make me feel as if I had done something criminal. I was downtrodden and distraught. I simply wanted my money so that I can pay my bills and move on from the U.S. Bank chapter in my life. 


On XX/XX/XXXX, I called XXXX. We had a conversation during which I explained to him that I still had not received my closeout check. It was here where he told me that U.S. Bank was not comfortable with the amount and frequency of these deposits. During my initial conversation with him, he said that what had caused them to pay attention to my account was an individual who was on their blacklist. He did not mention their level of comfortability with my account. He also stated that there was nothing he could do to help me in this matter any longer and that I would need to contact the branch. I asked him how that could be, seeing that he was the investigator and the one who worked on my account. He became confrontational and adamant that there was nothing he could do and that I should speak to the branch. I asked him to put himself in my shoes and again, he cut me off and abruptly stated, you need to speak to the branch. 


On XX/XX/XXXX, I visited the branch located at XXXX XXXX XXXX XXXX, CA XXXX. I spoke with XXXX ( BM ) as well as the personal banker there. I brought with me all the history from my BTC wallet. It shows each of the transactions including the details and chat between myself and purchasing party. Furthermore, I also have screenshots sent to me from the purchasers of my BTC ; XXXX encourages these screenshots to serve as confirmation of the actual money transfer/payment. I have attached those as well. A quick note regarding those screenshots is that the only way I could have a copy of those screenshots is if the other counter party ( purchaser ) actually sends me the screenshot. It basically serves as proof on their end that they've completed their part of the agreement, meaning they made payment, and at that point, my BTC which is being held in escrow, is released when I click release BTC. I brought this proof with me to the bank because I wanted to show them that the transactions were legitimate and that the other party had agreed to making the transfer or XXXX payment. The reason why I had chosen to visit this particular branch is because I already felt demeaned and insulted by the way XXXX had spoken to me. I did not want to have a negative experience with her unless it was absolutely necessary. I already felt like she had treated me wrongly and just didn't want to subject myself to that type of situation. 


I spoke with XXXX and the personal banker. I showed them my documentation and they were nice enough to scan it for me and fax it over to XXXX. I even spent some time with XXXX pointing out how the documentation coincided with the XXXX deposits and how it proved that the other party voluntarily and knowingly submitted payment to me. My goal was to show that the transactions were not fraudulent. I decided to wait until the following week to follow up with XXXX. 


On XX/XX/XXXX I called XXXX 's branch at the ( XXXX ) XXXX number. A teller answered and told me XXXX was with a customer. She asked me why I was calling and I spent about another 2 minutes explaining the situation to her. I told her I wanted to schedule an appointment with XXXX so that I could visit the branch and explain thoroughly my documentation and why it supports the fact that these were legitimate transaction and not fraud, all in hopes that they'll return my money as it's now been over 5 weeks since they've restricted my access to my own account and funds. I called the branch at XXXX. XXXX called me back around XXXX and stated there was no need for me to visit the branch and that she had forwarded my documentation to her back office. Personally, I had wanted to set up an appointment SO THAT I CAN SHOW HER WHAT ALL THIS PAPERWORK IS AND HOW IT RELATES TO THE SPECIFIC DEPOSITS THAT ARE BEING SCRUTINIZED. She didn't give me that opportunity. I even asked her can we still set up a time because I want to show you what is contained in the documentation so that you understand where I'm coming from. She responded there's no need. Since back office is going to make the decision about this, they can review it. She also stated that XXXX, the BM from XXXX had explained it to her and that she knew it was proof of the transactions. She said she would be calling me back with an update as soon as she hears anything. 


On XX/XX/XXXX, XXXX left me a message. In the message, she states that her back office has decided to not even review my documentation and that they know what is going on. Until there is confirmation from the banks where payment came from, they will not release my funds. I've worked in banking before, and theres no set methodology where the paying bank will confirm payments the way they are looking for confirmation. You don't get confirmations but you definitely will get chargebacks or informed notice if the payment isn't good. That has not happened and yet they still are holding my money hostage. Furthermore, she did not provide me with a way to resolve this issue. I have tried to think outside the box and provide them with documentation that will support my assertion that these payments were voluntarily and purposefully made to me, XXXX XXXX for BTC that they have received in exchange. When I heard XXXX 's message and the fact that they said they wouldn't even review my documentation, I couldn't help but think in my head, that's because you wouldn't even spend a minute of your time to agree to meet me so that I can show you how legitimate these transactions are and why your bank is making a huge mistake in labeling me as a criminal simply because BTC is involved. That is, unfortunately, my conclusion here because of the way they have decided to treat me and what I have to say. Please assist me in rectifying this situation. As XXXX made clear during my first call with him on XX/XX/XXXX, the bank has decided to terminate their relationship with me. To that, I respectfully say, I can understand their concern and respect that they have a job to do and a bank to protect. All I would like now is my money that is rightfully mine. It's now been over 5 weeks, we're going into the 6th week, and I ask you or anyone who is reading this, how would your financial situation sit if your primary bank closed your account and is holding your funds. That's what U.S. Bank is doing to me. This is now 5 weeks for the transactions to come back as fraudulent or unauthorized. This has not occurred. And it will not occur. These traders that I have transacted with are not going to risk their credibility and their 100 % rating, not to mention the proof ( chat dialogue showing the agreement between themselves and me as to the exchange ) just to rip me off for at most, {$2500.00}. For some people, this trading of BTC is their one and only job. I choose who I have transacted with meticulously, even if their rate ( exchange rate of BTC ) is lower than others simply because I want a trusted party on the other end. U.S. Bank won't accept or look at documentation that supports my choices. They are punishing me for no apparent reason. Please please please help me. I don't know what else I can do.