Consumer complaint received 2026-07-06 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: U.S. BANCORP
State: MO

Complaint narrative:
I am filing this complaint against US BANK for a severe violation of the Real Estate Settlement Procedures Act ( RESPA ), 12 CFR Part 1024 ( Regulation X ), specifically regarding the misappropriation and mismanagement of my escrow funds, resulting in an artificial escrow shortage and financial harm. > * * 1. Background & Unauthorized Escrow Disbursal * * > Prior to the renewal date of my homeowner 's insurance policy, I properly canceled the policy with XXXX. Despite this timely cancellation, US BANK disbursed funds from my escrow account to pay this unauthorized, canceled policy, while simultaneously paying my new, legitimate insurance carrier. This negligent double-payment depleted my escrow account. > * * 2. Conversion of Refunded Funds * * > Upon realizing the double-payment, the canceled insurance provider issued a refund check made out to me for the return of the escrow funds. I have attached a certified copy of the front and back of this processed checks as evidence. > The back of the check clearly displays an automated bank endorsement stamp, the bank 's clearing indicators, and my specific bank account number printed via Remote Deposit Capture ( RDC ) or an internal clearing process. The check was processed and cashed by US BANK internally. However, the bank completely failed to credit these funds to my escrow account or my personal accounts. The funds reside within the bank 's internal suspense or clearing accounts. > * * 3. Violations & Ongoing Financial Harm * * > * * * RESPA / Regulation X Violation : * * The bank has failed to properly manage and accurately credit returns to the escrow account, directly violating federal servicing guidelines. > * * * Artificial Escrow Shortage : * * Because the bank intercepted and lost the refund check internally, they have declared my escrow account " underfunded. '' They are now illegally demanding higher monthly mortgage payments to cover a shortage that they manufactured. > * * * Failure to Investigate : * * When contacted, bank management refused to initiate an internal tracking audit of their suspense accounts, despite being provided with the physical proof of the cashed check. Instead, they instructed me to demand a new checks from the insurance providera logistical impossibility as the insurance provider has already had the funds legally debited from their account by US BANK. > * * Desired Resolution : * * > To resolve this matter, I require US BANK to immediately escalate this to their accounting/suspense resolution department to locate the converted funds using the attached check transaction data. I demand that the bank : Credit the full amount of the refund checks XXXX XXXXXXXX XXXX XXXXXXXX XXXX of {$2000.00} back to my checking account immediately. Waive any and all associated escrow fees, late fees, or negative account statuses stems from this internal bank error. And should also have to pay for interest lost and other losses by not having these funds.

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