Consumer complaint received 2026-06-30 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Problem with a purchase shown on your statement — Credit card company isn't resolving a dispute about a purchase on your statement
Company: U.S. BANCORP
State: IL

Complaint narrative:
REGULATORY COMPLAINT : FORMAL REPORT OF SYSTEMIC CREDIT CARD FACTORING, APPLICATION MANIPULATION, AND MULTI-PARTY COLLUSION Target Entities : XXXX XXXX XXXX ( Primary Merchant Account ) XXXX XXXX / XXXX XXXX XXXX XXXX XXXX ) XXXX Summary I am filing this formal complaint with the CFPB to report an organized, deceptive financial scheme and illicit credit card factoring ring operated by XXXX XXXX XXXX and its primary agent, XXXX XXXX XXXX XXXX XXXX XXXX. This operation systematically utilizes deceptive sales practices, high-pressure coaching, and shell-company invoicing structures to manipulate bank underwriting systems, evade credit card merchant processing guidelines, and execute unauthorized transaction laundering. XXXX. Deceptive Business Practices and XXXX XXXX XXXX The principals enticed me into a program under the premise of building legitimate business credit. In practice, the operation functions as a predatory " credit card stacking '' scheme. The merchant and its agent, XXXX XXXX, systematically direct and coach consumers to falsify application metricsspecifically instructing the inflation of existing corporate revenues, household income, and employee countsto manipulate bank risk algorithms into extending high-limit XXXX XXXX introductory credit lines. When I challenged the legitimacy of these underwriting practices, the merchant actively misled me, claiming that fabricating these data points was a legally compliant method of representing " projected '' income. The merchant then exacts a predatory 10 % fee on the credit limits obtained through this manipulated data. XXXX. Illicit Merchant Factoring and Transaction Laundering To extract cash from the newly issued credit lines without triggering standard bank cash-advance limits or fees, XXXX XXXX XXXX operates an unauthorized transaction liquidation service. This mechanism constitutes severe credit card factoring and transaction laundering. The merchant issues massive commercial invoices under the guise of " consulting services. '' Once the consumer 's credit card charges the invoice, XXXX XXXX XXXX routes the funds through their processing accounts and wires the cash back to the consumer, minus their fee. In my specific case, the merchant attempted to deceive my financial institution during a subsequent dispute by mischaracterizing these incoming liquidation wires to my business checking account as " refunds, '' attempting to mask the structural reality of the circular funding loop. XXXX. Structural Collusion and Sham Multi-Party Inventory Laundering The operational architecture used by XXXX XXXX XXXX relies on a coordinated multi-party ring to execute transaction laundering. A designated XXXX partner acts as the " front-end '' promoter, enticing clients to purchase high-ticket inventory packages. Once hooked, the client is directed to XXXX XXXX XXXX, who acts as the " back-end '' funding and liquidation node. In my case, a total of {$50000.00} was processed through this loop ( {$20000.00} via XXXX XXXX ; {$30000.00} via US Bank XXXX. While the merchant claims inventory was purchased with these liquidated funds, the goods were intentionally directed to an overseas storage location completely owned and controlled by the merchant 's partner network. The merchant has provided me with XXXX bills of lading, XXXX maritime or domestic shipping documentation, and XXXX proof of physical delivery or independent title. Written correspondence via XXXX and other web-based platforms definitively proves direct collusion and operational overlap between XXXX XXXX and this XXXX affiliate. This structure is a deceptive shell mechanism : the merchant uses the consumer 's credit lines to fund and accumulate wholesale inventory for their own network 's physical possession, providing no asset to the consumer while leaving the consumer fully liable for the generated bank debt. XXXX. Current Status and Desired Resolution Upon realizing the structural nature of this deception and the potential exposure to financial fraud, I initiated formal disputes with the card issuers. XXXX XXXX is still reviewing the details of the case regarding the {$20000.00} transaction and has just recently requested my documentation. No merchant rebuttal details were mailed to me to review despite being in XXXX possession for over a month. US Bank has recognized the underlying merits of the claim, issued a {$30000.00} provisional credit, and the case is currently moving toward pre-arbitration. While my financial recovery is being handled through standard banking dispute channels, my ultimate goal in filing this regulatory complaint is the formal federal investigation of XXXX XXXX XXXX and XXXX XXXX ( XXXX XXXX ). These entities are operating an unregistered, deceptive financial brokerage that corrupts bank portfolio risk data and systematically violates anti-money laundering ( AML ) and merchant processing standards via sham invoices. They operate under the guise of " educational materials '' but their goal is to fleece high fees from clients thru the methods described in this complaint. They primarily use the XXXX online platform to perpetuate their business and regularly advertise on social media platforms. Gaining access to their " instructional '' videos on XXXX will corroborate my claims. I request that the CFPB coordinate with the merchant acquiring banks and card networks to permanently investigate, audit, and terminate the merchant processing privileges of these bad actors to protect other consumers from being pulled into these credit schemes.

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