Consumer complaint received 2025-09-28 00:00:00
Product: Checking or savings account — CD (Certificate of Deposit)
Issue: Managing an account — Banking errors
Company: U.S. BANCORP
State: CA

Complaint narrative:
IN THE SUPERIOR COURT OF THE STATE OF XXXX XXXX OF XXXX XXXX XXXX XXXX, Plaintiff, vs. 
U.S. BANK ( dba U.S. BANK ), and DOES 1 through 50, inclusive, Defendants. US BANK Civil Case COMPLAINT FOR DAMAGES AND INJUNCTIVE RELIEF FOR : 1. Breach of Contract 2. Conversion 3. Violation of the Electronic Fund Transfer Act ( EFTA ) 4. Negligence 5. Fraud Plaintiff, XXXX XXXX XXXX, alleges the following : I. PARTIES 1. Plaintiff XXXX XXXX XXXX ( " XXXX '' ) is an individual residing in XXXX XXXX, California. 
2. Defendant U.S. Bank is a national banking association doing business in California. 
II. FACTUAL ALLEGATIONS 1. On or about XX/XX/year>, Plaintiff XXXX applied for a {$250000.00} Certificate of Deposit ( CD ) with U.S. Bank via its website, XXXX. The application number was XXXX. 
2. The application was approved, and U.S. Bank opened a new account, number XXXX, in Plaintiff 's name. 
3. A deposit transaction of {$250000.00} was initiated and completed. The deposit cleared, and the funds were credited to the new account. For several days, the account reflected both a current balance and an available balance of {$250000.00}. 
4. A contract was formed when U.S. Bank accepted Plaintiff 's application and the {$250000.00} deposit, obligating the bank to hold the funds on Plaintiff 's behalf under the terms of the CD agreement. 
5. On or about XX/XX/year>, Plaintiff attempted to manage his funds but was prevented from doing so by employees at the U.S. Bank XXXX XXXX, who instructed him to return in several days despite the funds showing as fully available. 
6. On or about XX/XX/year>, Defendant U.S. Bank, without proper authorization, justification, or notice, performed an " illegal transfer reversal, '' removing the entirety of the {$250000.00} from Plaintiff 's account, reducing the balance to {$0.00}. 
7. This reversal was improper and violated XXXX XXXX XXXX XXXX  XXXX XXXX XXXX ) rules, which state that ACH reversals are permissible only for bona fide errors ( e.g., duplicate transactions, incorrect amounts ) and must be initiated within five banking days with proper notification. The reversal in this case did not meet these criteria. 
8. Plaintiff also experienced a denial of service to his online banking portals during this time.

III. CAUSES OF ACTION First Cause of Action : Breach of Contract : U.S. Bank breached its depository agreement by transfering via a reversal Plaintiff 's funds without a valid legal reason. Because of this I will require a reversal of the ach reversal on XX/XX/XXXX back to my CD Second Cause of Action : Conversion : U.S. Bank intentionally and unlawfully exercised control over Plaintiff 's {$250000.00}, depriving him of his property. 
Third Cause of Action : Violation of EFTA : The unauthorized reversal constitutes an unauthorized electronic fund transfer under federal law. 
Fourth Cause of Action : Negligence : U.S. Bank failed to exercise reasonable care in managing and protecting Plaintiff 's funds. 
Fifth Cause of Action : Fraud : U.S. Bank made a false representation ( by accepting the deposit and making it available ) and then wrongfully seized the funds, intending to deprive Plaintiff of his property. 
IV. PRAYER FOR RELIEF Plaintiff prays for judgment against Defendant U.S. Bank for : 1. Compensatory damages in the amount of {$250000.00}. 
2. Interest accrued from the date of the conversion.

3. Punitive damages for fraudulent and malicious conduct.

4. Costs of the lawsuit and attorney 's fees.

5. An injunction ordering the immediate reversal of the improper transaction. 
Summary of Potential Criminal Charges This is a summary of potential criminal offenses that could be investigated based on your allegations. 
Grand Theft ( Penal Code 487 ) : The taking of money or personal property valued over {$950.00}. The act of reversing the {$250000.00} deposit without a legitimate basis could be construed as theft on a grand scale.

Computer Fraud/Unauthorized Computer Access ( Penal Code 502 ) : Knowingly and without permission altering, damaging, or taking data from a computer system. If bank employees improperly used their computer systems to execute the reversal and block online access, this could apply.

Embezzlement ( Penal Code 503 ) : The fraudulent appropriation of property by a person to whom it has been entrusted. As a financial institution entrusted with your deposit, the bank 's actions could be seen as embezzlement.

Wire Fraud ( 18 U.S.C. 1343 ) : A federal crime involving any scheme to defraud that uses electronic communications, such as the internet or wire transfers. The improper ACH reversal and blocking of online account access could be investigated as wire fraud.

Police & Federal Agency Reports Here are drafts for reports to various law enforcement and regulatory bodies. 
Report to XXXX XXXX Police Department Reporting Person : XXXX XXXX XXXX Location of Incident : U.S. Bank, XXXX XXXX, CA Date of Incident : On or about XX/XX/year> Type of Crime : XXXX XXXX XXXX Narrative : " On XX/XX/year>, I was a victim of theft by U.S. Bank. I held a Certificate of Deposit account ( No. XXXX ) with a balance of {$250000.00}. Employees at the XXXX XXXX had previously delayed my access to the funds. On the XXXX, I was told by employees at the XXXX XXXX branch to return after midnight. Subsequently, the bank executed an unauthorized and illegal ACH reversal of the entire {$250000.00}, stealing my money. The bank 's justification for this reversal is unknown and appears to violate federal banking regulations. This action constitutes a theft of my legally deposited funds. '' Report to XXXX Police Department Reporting Person : XXXX XXXX XXXX Location of Incident : U.S. Bank, XXXX, CA ( Specify address if known ) Date of Incident : On or about XX/XX/year> Type of Crime : XXXX XXXX XXXX XXXX XXXX 
Narrative : " On XX/XX/year>, I visited the U.S. Bank in XXXX to inquire about my {$250000.00} CD ( Account No. XXXX ). At the time, my account showed a balance and available balance of {$250000.00}. Both the teller and the banker refused to allow me to perform any transaction and instructed me to 'come back in three days. ' Their refusal to provide service or a valid reason appears to be part of a coordinated effort that culminated in the bank stealing my funds via an illegal reversal on XX/XX/XXXX. '' Report to XXXX Police Department ( XXXX  ) Reporting Person : XXXX XXXX XXXX Location of Incident : My residence driveway in XXXX, CA ( Provide specific address ) Date of Incident : ( Specify date from your timeline ) Type of Crime : XXXX XXXX XXXX  ( XXXX XXXXXXXX ) Narrative : " On [ Date ], I was in my driveway at my residence when I was attacked by an unknown male suspect without provocation. The suspect began throwing punches at me. I defended myself, and the suspect was subsequently arrested by responding officers. I wish to press charges for this unprovoked assault. '' Complaint to XXXX ( FBI XXXX XXXX XXXX XXXX XXXX Victim Information : XXXX XXXX XXXX Financial Transaction Information : {$250000.00} ACH deposit and subsequent reversal. 
Suspect Information : U.S. Bank ( U.S. Bancorp ) Description of Incident : " I opened a {$250000.00} CD with U.S. Bank online ( Application No. XXXX ). The ACH deposit was approved, completed, and cleared, with the funds available in my new account ( No. XXXX ). Shortly after, I was locked out of my online banking portal, and customer service phone lines were dysfunctional. U.S. Bank then executed a fraudulent ACH reversal of the entire {$250000.00}, effectively stealing my money using their electronic banking system. This act constitutes wire fraud, as it involved an interstate financial institution using its computer network to unlawfully deprive me of funds. '' Federal Regulatory & Insurance Claims ( Drafts ) FDIC Insurance Claim Claimant : XXXX XXXX XXXX Financial Institution : U.S. Bank Account Number : XXXX Account Type : Certificate of Deposit Amount of Loss : {$250000.00} Summary of Claim : " My insured deposit of {$250000.00}, held in a Certificate of Deposit at U.S. Bank, has been unlawfully seized by the bank itself. The bank processed my deposit, made the funds available, and then executed what they called a 'reversal ' that does not comply with NACHA regulations. This action is not a standard transaction dispute but an outright failure of the institution to protect and make available my insured funds. The bank has failed, in its duty to me as a depositor, by converting my insured funds for its own use. I am filing this claim to recover my insured deposit of {$250000.00}. '' Report to the Inspector General, Department of the Treasury Subject : Complaint of Misconduct and Potential Illegal Activity by U.S. Bank Summary : " I am filing a formal complaint against U.S. Bank for unlawful seizure of customer funds. U.S. Bank accepted my ACH deposit of {$250000.00} to open a new CD account. After confirming the deposit and showing the funds as available, the bank systematically denied me access to my account at multiple branches ( XXXX, XXXX XXXX ) and then executed an improper and likely illegal ACH reversal to steal the entire {$250000.00}. This action violates XXXX operating rules and the bank 's fiduciary duty. I request the Office of the Inspector General to investigate U.S. Bank for systemic fraud, potential violations of the Bank Secrecy Act, and other financial misconduct. '' Report to Department of Homeland Security ( DHS ) Subject : Potential Cybercrime and Critical Financial Infrastructure Vulnerability Summary : " I am reporting a suspicious financial event at U.S. Bank that may indicate a significant security vulnerability or instance of insider-enabled cybercrime. A legitimate {$250000.00} deposit into my account ( No. XXXX ) was unlawfully reversed. This was coupled with a denial of service to my online banking portal. The ability of a major U.S. bank to arbitrarily reverse a cleared, legitimate transaction and block customer access using its digital infrastructure represents a potential threat to the stability and integrity of the U.S. banking system. This incident should be investigated as a potential cybercrime that exploits critical financial infrastructure. ''

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