Consumer complaint received 2024-08-14 00:00:00
Product: Checking or savings account — Checking account
Issue: Problem caused by your funds being low — Overdrafts and overdraft fees
Company: COLUMBIA BANKING SYSTEM, INC.
State: OR

Complaint narrative:
My organization, XXXX XXXX XXXXXXXX, experienced a significant issue with Umpqua Bank regarding the handling of a {$21000.00} transaction initiated by XXXX on XX/XX/2024. Despite having no funds available in the account at the time, the bank processed this transaction, leading to an overdraft. This incident occurred after funds had been transferred out of the account for payroll, and it has severely impacted your business 's cash flow, jeopardizing your ability to meet payroll obligations. 


XXXX. **Inconsistent Handling of Transactions : ** - The bank previously returned the exact same transactions initiated by XXXX on XX/XX/2024, and XX/XX/2024, due to insufficient funds. However, the {$21000.00} transaction on XX/XX/2024, was processed despite the account not having the necessary funds, leading to a significant overdraft. 

XXXX. **Refusal to Provide Supervisory Contact Information : ** - Despite multiple requests, XXXX XXXX XXXX the VP Branch Manager at Umpqua Bank XXXX refused to provide the contact information for her supervisor or escalate the issue within the bank. 

XXXX. **Conflicting Explanations : ** - There have been conflicting explanations from the bank regarding why the transaction was processed. Initially, it was suggested that the decision was made personally by a branch employee, but later, it was stated that it was a system decision due to the transaction being classified as a " collection. '' 4. **Impact on Payroll : ** - The overdraft has made it impossible to process payroll, and the bank has refused to authorize further payments from the account until the overdraft is cleared, putting the business 's operations at risk. 

XXXX. **Lack of Resolution : ** - Despite your efforts to resolve the issue, including contacting the FDIC and the Oregon Division of Financial Regulation , the bank has not provided a satisfactory resolution. Instead, they continue to place the responsibility on your organization and XXXX, without addressing the banks role in the situation. 

# # # Timeline : - XXXX XXXX, 2024 : ** - A transaction initiated by XXXX was returned due to insufficient funds. 

- *XXXX XXXX XXXX : ** - Another transaction initiated by XXXX was returned due to insufficient funds. 



- XXXX XXXX XXXX  : ** - Funds were transferred out of the account early in the morning for payroll. 
- XXXX visits XXXX XXXX and wires the money out to XXXX for Payroll - XXXX  later initiated a {$21000.00} withdrawal from the same account, which was processed despite insufficient funds, leading to a significant overdraft. 

- XXXX XXXX XXXX  : ** - You discovered the overdraft and contacted Umpqua Bank XXXX address the issue. 

- XXXX XXXX XXXX  : ** - Multiple emails were exchanged with Umpqua Bank XXXX It was revealed that the decision to process the transaction was allegedly automated, not manual, and classified as a " collection. '' - You requested clarity and a review of the transaction, noting the inconsistency with previous similar transactions. 

- XXXX XXXXXXXX XXXX : ** - You escalated the issue further, requesting an investigation and the contact information of higher authorities within the bank. XXXX XXXX continued to refuse the request, deflecting responsibility to XXXX 
- Despite your escalation, the bank continued to deny responsibility and did not offer any resolution or corrective action. 

**Current Status : ** - You have escalated the issue to the FDIC and the Oregon Division of Financial Regulation , seeking their assistance in resolving the matter. The overdraft remains unresolved, and the bank has not authorized critical payroll payments, threatening the viability of your business.

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