Consumer complaint received 2026-04-28 00:00:00
Product: Checking or savings account — Checking account
Issue: Closing an account — Company closed your account
Company: U.S. BANCORP
State: IL

Complaint narrative:
Fraudulent activity occurred on my U.S. Bank checking account. I filed a chargeback dispute with U.S. Bank regarding the unauthorized transactions, and U.S. Bank initially ruled in my favor. After the favorable decision, the merchant continued attempting to pull funds from the account through unauthorized ACH transactions. A U.S. Bank representative told me the bank could not block the merchant 's repeated ACH attempts and recommended that I close the account to protect myself. I closed the account on U.S. Bank 's recommendation. After the closure, U.S. Bank opened a new deposit account for me. A bank does not open a new account for a customer it considers to have committed account abuse. U.S. Bank 's own conduct in opening a new account demonstrates that, at the time of closure, U.S. Bank did not consider me to have engaged in any form of account abuse. Sometime after the closure and the opening of the new account, U.S. Bank reversed its prior favorable decision on the chargeback dispute. I was not provided with adequate notice of the reversal, an explanation of the basis for the reversal, or a meaningful opportunity to respond. The disputed amount of {$540.00} which I do not acknowledge as a valid debt was then treated as an unpaid balance and reported as a charge-off with a closure date of XX/XX/year>. U.S. Bank reported this account to XXXX with the closure reason " ACCOUNT ABUSE '' a classification that implies intentional misconduct. That classification is directly contradicted by U.S. Bank 's own conduct : the closure was made on U.S. Bank 's own advice as a protective measure, and U.S. Bank opened a new account for me immediately afterward. The " ACCOUNT ABUSE '' classification was applied retroactively, only after the chargeback reversal created a balance, and has materially damaged my XXXX consumer score ( currently XXXX ) and impaired my ability to open accounts at other institutions. U.S. Bank has now placed this disputed balance with a third-party debt collector, which sent me a settlement offer dated XX/XX/year>. I have filed a parallel dispute with XXXX regarding the inaccurate " ACCOUNT ABUSE '' classification, and I am sending a debt validation letter to the collector under the FDCPA. ISSUES : U.S. Bank advised me to close the account as a defensive measure, then opened a new account for me, then later reported the closed account to XXXX as " ACCOUNT ABUSE. '' These actions are internally inconsistent possible violation of FCRA accuracy requirements ( 15 U.S.C. 1681s-2 ). U.S. Bank reversed an initial favorable chargeback decision after the account was closed ( on U.S. Bank 's own advice ), without providing adequate notice, explanation, or opportunity for me to respond possible violation of Regulation E ( 12 C.F.R. 1005.11 ). U.S. Bank has placed the disputed balance with a third-party debt collector while the underlying transaction remains contested.

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