Consumer complaint received 2026-01-13 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Payment process
Company: U.S. BANCORP
State: VA

Complaint narrative:
My husband and I purchased a home with a mortgage from US Bank in XX/XX/XXXX. We were incentivized to open a US Bank checking account to facilitate auto-pay, which we did at the time of the mortgage application. We were notified by US Bank by mail on XX/XX/XXXX that I was 30 days late on my first mortgage payment. Apparently, the initial payment due date was XX/XX/XXXX. I believe this late payment on my account was the result of a system-related error and a lack of appropriate communication on the part of US Bank XXXX not intent, action or negligence on my part. We disputed the late payment with US Bank many times, with the final request attached. The correction denial returned by US Bank states Phone calls and letters were placed in advance of the XX/XX/XXXX payment coming due This information is not correct, and was confirmed to my husband on a call with a US Bank rep on XX/XX/XXXX. I have also verified this in my phone and text logs, as well as my email. They could not provide any evidence of times/dates that any call, text or email was sent in time for us to avoid being late. As stated in paragraph XXXX below, I never received any instruction for how to pay my account. If US Bank has any record of a call or text or email sent to me before the past due window, including a monthly statement or payment coupon, please provide evidence of this as soon as possible. Here is a recap of the important facts previously provided : 1. This was our initial monthly payment. This payment that has been deemed as late was the very first monthly payment on a new 30 year mortgage loan. The setup of the accounts was all new, and I believe the process was not completed or set up completely as anticipated. There were initial setup details that were not clearly communicated as to the process of how payments would be facilitated, but we did properly fund the payment account in anticipation of the first payment draft. 2. Mortgage and checking accounts established in unison for auto-pay purposes My new mortgage and the associated checking account with US Bank were both just established in tandem upon closing on my home purchase in late XX/XX/XXXX. My US Bank mortgage XXXXXXXX XXXX ( XXXX ) specifically gave us an incentive to accept the mortgage along with this associated checking account with US Bank and specified the monthly payment would be auto-deducted, so we accepted the mortgage and associated checking account under these premises. Both the mortgage and the checking account were established together, and I was led to believe our payments were automatically to be deducted. 3. No notice or instructions for first payment We never received any payment request, invoice, bill payment coupon or any other notification of how or when to make this first payment. There was no mail sent, no email, no call from my broker nor text to me regarding this first payment, or any instructions of any kind of how or when to make this first payment. US Bank made no attempt to inform me of my balance due or when. 4. Confirmation from a US Bank representative regarding auto-pay setup and grace period On our own accord, while confirming the establishment of the initial auto-pay for my account online prior to the initial due date, my husband had an online chat conversation with a US Bank representative " XXXX XXXX at XXXX on XX/XX/XXXX seeking to confirm my account was set up for auto-pay as expected, and they replied to inform us that the auto-pay had not yet been activated by US Bank as promised. Following this conversation, I immediately set up auto-pay for the month of XXXX. My intent and attempt to pay on time were clear, and action was taken promptly after being advised by your staff. we were obviously trying to actively make the payment prior to the due date. My husband had a follow up chat with agent " XXXX '' after I set up the XXXX payment at XXXX, where they stated that can take a few days to post to the account, it will be within the grace period so you'll be fine. We reasonably believed from the website information that this was successfully completed prior to the due date, with no reason to believe the payment would not be processed as instructed. I also understood from this chat that there was a grace period to work out the kinks in this setup and it would be sorted out as I was led to expect. I believe that the internal systems at US Bank were the cause of this late payment, because we proactively set up the payment. Later, the previously set up auto-pay AND the new auto-pay I set up were both drawn in XXXX ( one should have been around XX/XX/XXXX ) 5. Lack of communication from US Bank during a critical time On a phone conversation with a US Bank representative on XX/XX/XXXX, the very same day we received only only notice of the past due status, she confirmed that no emails, text messages or phone calls had been attempted by US Bank to either me or my wife - she could not provide a single piece of evidence or even refer to anything sent. As a new loan, all of these channels were recently provided to US Bank, and we had regular direct communications with our broker. Unfortunately, US Bank made no attempt to notify me or my husband by these channels regarding the failed payment or issues with the auto-pay setupuntil it was too late. Had we received and invoice/statement or coupon or other timely notice through email, text or phone, we could have rectified the issue immediately. My mortgage XXXX also made no attempt to give us notice that the setup was not established or the payment had not been processed properly. Since this payment, we receive regular emails about the account payments and updates. I do not believe this was correctly established by US Bank during the first month of my account, and no communications were attempted. 6. Sufficient funds and system failure in auto-pay deduction Through my own actions, auto-pay was set up and active on time for the XXXX payment and my account had more than sufficient funds to cover the payment in full prior to the due date. The failure to deduct the payment appears to be a technical error despite the feature being turned on prior to the due date by me on XX/XX/XXXX at XXXX. This indicates a malfunction within the banks systems or information flows rather than an oversight on my part. Given these aforementioned circumstances, I am requesting that US Bank rescind this late payment entry from the credit bureaus for both myself and my husband. This situation was not due to a failure of financial responsibility, but rather a breakdown in US Bank system functionality and inadequate communications regarding the payment setup status. I reiterate, this was the very first months payment. Due to US Bank 's failure to process this account correctly or responsibly, they have reported this payment late to all three credit reporting bureaus. All have downgraded my and my husband 's credit score dramatically.

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 non-monetary relief