Consumer complaint received 2026-03-07 00:00:00
Product: Checking or savings account — Checking account
Issue: Managing an account — Fee problem
Company: U.S. BANCORP
State: WI

Complaint narrative:
Company involved : U.S. Bank Issue : Incorrect overdraft, improper debt claim, and negative credit reporting resulting from bank processing error Statement In early XX/XX/year> ( approximate ), I had a checking account with U.S. Bank that typically received my VA XXXX payment of about {$530.00} per month ( 30 % rating at that time ). My balance around the time of the incident was approximately {$2.00} after normal bills were paid. During this time, my roommate temporarily sent me several transfers totaling roughly {$700.00} {$800.00}. These transfers were not meant to remain in my account. I returned the funds to her within about XXXX minutes through multiple outgoing transactions. Because of U.S. Banks transaction processing system, the incoming and outgoing transfers appear to have been processed in a way that incorrectly created an overdraft condition. Instead of recognizing that the same funds were immediately returned, the system first showed my account as being approximately negative {$100.00}. After the outgoing transfers were completed, the system then reflected the account as nearly {$800.00} {$900.00} negative, even though the transactions simply returned the same funds that had just been sent. I contacted U.S. Bank to explain the situation. During a phone call, a representative indicated that the situation appeared to be related to an internal processing or system issue. However, despite this acknowledgment, the problem was never corrected. I eventually closed the account and no longer do business with U.S. Bank. Since then, I have been contacted regarding an alleged {$100.00} balance, which I dispute because it resulted from this processing error. The account has apparently been referred to collections, which indicates that the bank may have also reported the matter to credit reporting agencies. This is particularly concerning because I am actively working to rebuild my credit and this issue appears to have negatively affected my credit file. Additionally, because the account was incorrectly placed into a negative balance, it may have interfered with a VA XXXX payment of approximately {$530.00} that was expected during that time. I never received this payment and have been unable to determine whether the bank account issue contributed to the funds not reaching me. Because I no longer have access to the account, I request that U.S. Bank retrieve and review the XX/XX/year> transaction records to fully investigate the processing of these transfers. I contacted the bank twice regarding this issue. On both occasions, representatives confirmed that the error was on the banks side and acknowledged my account details. Despite this, the bank did not correct the issue, and follow-up promises were not fulfilled. This failure caused my account to be mismanaged and negatively impacted my credit record.

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