Consumer complaint received 2026-06-16 00:00:00
Product: Checking or savings account — Checking account
Issue: Problem caused by your funds being low — Late or other fees
Company: U.S. BANCORP
State: MA

Complaint narrative:
I am filing this complaint regarding U.S. Bank 's systematic assessment of monthly service fees on a business checking account that was functionally unusable due to the bank 's own transfer restrictions. I opened a XXXX XXXX Checking Account on or about XX/XX/XXXX under my company : XXXX XXXX XXXX XXXX XXXX, intending to take advantage of a promotional offer requiring a {$25000.00} deposit. I had these funds readily available in my linked XXXX XXXX XXXX account. From the outset, U.S. Bank made funding the account impossible in any normal or routine manner : I was required to complete a manual PDF form just to deposit an initial {$300.00}. After linking my XXXX XXXX XXXX account ( which contained well over {$25000.00} ), U.S. Bank blocked external ACH transfers. I was informed by U.S. Bank employees that I could only fund the account through repeated small incremental transfersan impractical and burdensome process. I reasonably assumed that after depositing the {$300.00}, the linked XXXX XXXX XXXX account would allow the full {$25000.00} transfer. When this failed, I became frustrated and concluded the account was unusable for its intended purpose. I stepped away, reasonably believing my {$300.00} would remain safe until I could resolve the matter. U.S. Bank then assessed XXXX XXXX XXXX XXXX monthly " dormancy '' fees * * against this account for over one year, systematically draining the entire {$300.00} balance and pushing the account to a negative balance. I received no noticeno mail, no email, no alertthat fees were accruing or that my balance was being depleted. When I discovered the negative balance, I immediately contacted U.S. Bank. They refunded only {$90.00} as a " courtesy '' ( actually only {$30.00} was refunded, not the {$90.00} they verbally claimed ), but refused to refund the remaining $ XXXX in fees. The bank 's own letter dated acknowledges the fees were charged and that they could reverse them, yet they have arbitrarily chosen not to fully reverse the wrongful charges. The bank 's advertising encouraged a {$25000.00} deposit with a cash bonus, while their systems made that deposit impossible. The bank then penalized me for inactivity on an account they made unusable. This is a bait-and-switch scheme that systematically traps consumers. Legal Violations A. Consumer Financial Protection Act ( CFPA ), 12 U.S.C. 5536 ( a ) ( 1 ) ( B ) U.S. Bank 's conduct constitutes an unfair, deceptive, or abusive act or practice ( UDAAP ) : Unfair Conduct : The bank knowingly imposed transfer restrictions that made the account unusable The bank assessed fees for inactivity while the account was unusable The bank provided no meaningful notice of accruing fees The bank 's $ XXXXmonth fee on a {$300.00} balance ( 10 % per month ) is disproportionate and causes substantial injury Deceptive Conduct : The bank advertised a bonus requiring a {$25000.00} deposit while making the required funding impossible The bank represented that linking an external account would enable transfers, then blocked them The bank 's letter acknowledges fees were " assessed correctly '' while also partially refunding themcontradictory representations The CFPB has previously fined U.S. Bank {$37.00} XXXX for similar misconductopening unauthorized accounts and engaging in deceptive sales practices. In that enforcement action, the CFPB found that U.S. Bank 's conduct caused " substantial injury to consumers in the form of fees, negative effects on credit reports, and the loss of control over their personal information ''. B. New Hampshire Consumer Protection Act ( RSA 358-A:2 ) Under New Hampshire 's Consumer Protection Act, it is unlawful to use " any unfair or deceptive act or practice in the conduct of any trade or commerce ''. Specifically, the statute prohibits : Claiming that goods or services have certain characteristics or benefits when they do not ( the bank advertised a bonus offer while making the {$25000.00} deposit impossible ) Falsely representing sponsorship, approval, status, or affiliation Advertising goods or services with the intent not to sell them as advertised The bank 's bonus offer was made with the intent to attract deposits, yet their systems were designed to block those deposits. This is precisely the type of deceptive conduct the NH Consumer Protection Act was designed to address. C. Truth in Savings Act ( 12 U.S.C. 4301 et seq. ) Banks are required to clearly and conspicuously disclose terms, fees, and charges. U.S. Bank 's fee structure $ XXXXmonth on a {$300.00} balancewas buried in fine print and not meaningfully disclosed. The bank 's $ XXXXmonth fee on a {$300.00} balance is 10 % per month120 % annuallyfar exceeding any reasonable service fee structure. The CFPB has noted that " dormancy fees, latency fees, or any other administrative fees or service charges that have the effect of reducing the total amount for which the holder may redeem '' are prohibited, and while this provision specifically addresses gift certificates, the same unfairness principles apply to bank dormancy fees. D. Implied Covenant of Good Faith and Fair Dealing Every contract includes an implied duty of good faith. U.S. Bank 's conductmaking the account unusable, charging fees for inactivity, and providing no noticeviolates this fundamental duty. The bank can not create the conditions that led to dormancy and then penalize the consumer for dormancy. U.S. Bank 's History of Misconduct : XX/XX/XXXX : The CFPB fined U.S. Bank {$37.00} XXXX for opening fictitious accounts without customer consent from XXXX to XXXX. The CFPB found the bank illegally accessed credit reports and opened checking, savings, credit card, and line of credit accounts without permission. Pattern of Fees : A CFPB report found that U.S. Bank 's average annual fees per account were among the highest of examined institutions, with overdraft fees of {$36.00} at U.S. Bank compared to {$0.00} at other institutions. Ongoing Consumer Complaints : The CFPB 's Consumer Complaint Database contains over 4,700 complaints against U.S. Bank. The bank has faced numerous complaints regarding account closures, fee disputes, and service issues.

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