Consumer complaint received 2025-04-05 00:00:00
Product: Checking or savings account — Checking account
Issue: Problem with a lender or other company charging your account — Transaction was not authorized
Company: U.S. BANCORP
State: CA

Complaint narrative:
I am writing to file a formal complaint regarding an unauthorized transaction on my U.S. Bank account. On XX/XX/year>, an amount of {$1500.00} was debited from my account without my consent. 
Upon investigation, I discovered that this transaction was initiated by my former employer, XXXX XXXX, who claimed it was for a vehicle expense. At the time of the unauthorized charge, I was going on four months without working for them. I categorically deny authorizing this charge, and the claim made by XXXX XXXX is inaccurate. 
Details of the Complaint : Unauthorized transaction : {$1500.00} was withdrawn from my account by XXXX XXXX. I did not authorize this transaction. 
Violation of UCC 4-105 : As per the Uniform Commercial Code 4-105, U.S. Bank, as the depositary bank, is responsible for the proper handling of items and transactions. Allowing an unauthorized debit from my account constitutes a breach of this duty. 
Breach of Fiduciary Duty : U.S. Bank has a fiduciary duty to act in the best interest of its customers and protect their funds from unauthorized access. Allowing this transaction to proceed violates this duty. 
Violation of Regulation E ( Electronic Fund Transfer Act ) : Under Regulation E, financial institutions are required to investigate and resolve unauthorized electronic fund transfers promptly. U.S. Bank 's failure to address this unauthorized charge is a violation of this regulation.

Failure to Prevent Fraud : The banks lack of oversight and failure to implement appropriate fraud-prevention measures have directly resulted in my financial loss.

Impact on My Finances and Credit : As a result of this unauthorized {$1500.00} transaction, my account balance became negative, leading to the closure of my U.S. Bank account. This account closure has severely impacted my financial stability and my credit report. U.S. Bank 's failure to properly address this situation has resulted in negative marks on my credit history, which have further hindered my ability to obtain financial services. 
Impact on My Reputation : This incident has also caused damage to my personal and professional reputation. The disruption to my business banking operations has led to delays in meeting financial obligations, which has strained relationships with vendors and partners. These reputational harms are a direct result of U.S. Banks negligence in allowing the unauthorized transaction to proceed.

Punitive Damages : Given the gross negligence exhibited by U.S. Bank in this matter and the financial, emotional, and reputational distress it has caused me, I am seeking punitive damages to hold the bank accountable for its failure to protect my account. Punitive damages serve to deter similar misconduct and ensure that financial institutions uphold their legal and ethical obligations. 
Additional Context : This matter has been further complicated by XXXX XXXX filing for bankruptcy. My legal representation, XXXXXXXX XXXX XXXX XXXXXXXX, was in the process of pursuing legal action against XXXX XXXX prior to this filing. Despite this setback, the liability of U.S. Bank in allowing this unauthorized transaction remains clear. 
Attempts to Resolve : I have made efforts to resolve this matter directly with U.S. Bank and XXXX XXXX, but my concerns have not been adequately addressed. XXXX XXXX has provided a false explanation for the charge, and U.S. Bank has failed to take appropriate corrective action. 
Supporting Evidence : I am providing copies of my account statement highlighting the unauthorized transaction, as well as any relevant correspondence Ive had with XXXX XXXX or U.S. Bank. 
Desired Resolution : I request a full refund of the {$1500.00} to my account, along with additional compensation for punitive damages due to the distress, negligence, credit damage, account closure, and impact on my business operations caused by this situation. Additionally, I expect U.S. Bank to comply with its obligations under the Uniform Commercial Code, Regulation E, and applicable banking regulations to investigate this matter thoroughly. I also urge the bank to implement stronger fraud-prevention measures to ensure that unauthorized transactions like this do not occur in the future.

Thank you for your attention to this serious issue. I hope for a prompt resolution to my complaint.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation