Consumer complaint received 2016-04-07
Product: Credit card — 
Issue: Customer service / Customer relations — 
Company: U.S. BANCORP (AZ)

I am an Arizona-based XXXX XXXX XXXX that provided consulting services for large projects. For approximately 35 years we have banked at what is now the XXXX bank. 
In the early XXXX 's we were retained to provide consulting services for a project in Oregon. the project required my on-site presence. XXXX did not have banking services in the area. Accordingly, we established a relationship with the U. S. Bank. 
In XXXX the Oregon client elected to stop the project and subsequently advised that they did not have the resources to compensate my partner and me for the services we had provided. 
As a result of the clients failing to pay, we got behind with our XXXX Bank XXXX credit card payments. 
We contacted the Bank XXXX U.S. Bank XXXX and promptly and professionally reached an agreement whereby we gave them the authority to withdraw, using a separate bank card issued by XXXX, a constant monthly amount each and every month until the account balance reached zero. 
For the next several months the process worked without flaw. Then for reasons that I no longer recall, the XXXX bank determined that the card we were using needed to be replaced. Not a problem. The card was replaced and life went on. Apparently ; however, the XXXX Banks efforts to withdraw the monthly amount were closed out by the replacement of the card. 
We had lost our home as a result of the client 's failure to pay and after a period of about XXXX years decided to attempt to restore our credit rating that we could rent or possibly purchase a new residence. 
We were not aware of the issue with the U.S. Bank ; however, once we started the process of restoring our credit, we learned that the U.S. Bank had placed the account in collections. Why they did not contact us to advise that the credit card was being refused, is beyond me ; however, as a result, our credit was in shambles. 
We once again contacted the U.S. Bank to inquire as to why they did not simply give us a call advising of the issue. The U.S. Bank was apologetic ; however, they had a remedy. They advised us of a new program whereby they would give us a " hardship '' rating, reduce the interest and fees and set the process up on a five-year payment plan. 
Once again the process started smoothly. Then XXXX day an automotive dealership called to inquire as to our interest in a newer car. We proceeded until the credit check. Once again, we learned that the U.S. Bank had placed us in collections. Once again, I contacted the bank. I asked if we were current on the hardship plan. They responded with yes, we were current. I then asked why the bank had, once again, placed us in collections. The bank advised that although we were current with the provisions of the hardship plan, the original monthly agreement had remained in collections. 
I admit to being irritated. Why, I asked would anyone either the bank or an individual enter into a new agreement and leave the underlying issue in collections. They had no answer. 
We later learned that if we made XXXX payments according to the original agreement, we would be brought current and if we continued to make the " hardship '' payments we would no longer have this issue over our heads. 
I have been a business man for nearly XXXX years and have had many dealings with banks and with the exception of this transaction, they have been resolved. I did learn XXXX thing. If I owed the bank {$150000.00} and got behind a few days, I would receive a quick telephone call. The matter would be resolved and all would be well. 
Such is apparently not the case when the amount is only {$1700.00}. 
I have not lost any money as a result of this issue. I have ; however, lost the credit rating necessary to allow my wife and I ( Married 57 years XXXX to move out of my son-in-law 's back bedroom and have place of own.