Consumer complaint received 2025-07-16 00:00:00
Product: Checking or savings account — Checking account
Issue: Closing an account — Funds not received from closed account
Company: U.S. BANCORP
State: AZ

Complaint narrative:
Subject : Formal Complaint Regarding Unauthorized Account Closure and Withholding of Funds by US Bank - Account ending in XXXX ( XXXX / XXXX XXXX ) To the Consumer Financial Protection Bureau, This letter serves as a formal complaint against US Bank regarding the unauthorized closure of a business checking account ( ending in XXXX ) for XXXX and the subsequent wrongful withholding of a {$25000.00} deposit. 

On XX/XX/year>, the business checking account was opened in person at a US Bank branch, and I, XXXX XXXX, as Managing Member of XXXX XXXX XXXX ( operating as XXXX ), provided all necessary company authorization documents. On the same day, a {$25000.00} grant check from a reputable research foundation, XXXX XXXX XXXX, was deposited. 
Following the account opening, on XX/XX/year>, US Bank sent an email requesting additional information, which was promptly provided on XX/XX/year>. 
Despite providing all requested documentation and acting in good faith, US Bank sent a letter dated XX/XX/year>, stating the account was closed effective immediately. The reason cited was " evidence to suggest that a deposit account has been opened with your name and personal information. The concern is that the information on the application may not be accurate or that you did not apply for this account ''. This claim is unsubstantiated, as the account was opened personally with valid documentation. 
Since the account closure, US Bank has withheld the deposited funds for over three weeks without clear explanation or resolution. Attempts to resolve this issue through direct communication with US Bank have been largely unproductive, involving numerous lengthy phone calls ( over 15 hours in total ) and exchanges of emails. 

On XX/XX/year>, a representative from US Bank 's Fraud Department called me for the first time. I was informed me that the funds are currently being " held '' due to a " concern regarding the source of the funds '' ( the grant check from XXXX XXXX XXXX ). So all of the verifications of me were unnecessary and the concern was over the source, so that was just a run-around. 
The review team is currently investigating and stated they do not believe the source is legitimate. They indicated that the funds may either be returned to the originating XXXX XXXX XXXX or not at all. 
This situation has caused significant financial harm and distress to XXXX. We believe US Bank 's actions constitute unfair banking practices, bad faith account closure, and wrongful withholding of funds. We urge the CFPB to investigate this matter thoroughly and ensure a prompt and just resolution, including the immediate release of the deposited funds. 
My startup company is experiencing significant damage and harm due to not being able to access the funds. I am concerned the damage is beyond repair since I cant even attend any conferences or do any marketing without the money. The delay is also risky for my IP being stolen by a copycat. The theoretical damage is significant if I am being prevented from moving my business forward.

I also believe the reason for this closure was to avoid paying the XXXX $ bonus I was promised. If US bank does not want to pay bonus on new accounts, they should not offer them. Closing this account has virtually ruined my business. 

Sincerely, XXXX XXXX Founder, XXXX XXXX XXXX

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