Consumer complaint received 2025-01-02 00:00:00
Product: Prepaid card — Government benefit card
Issue: Problem with overdraft — Overdraft charges
Company: U.S. BANCORP
State: CO

Complaint narrative:
At the outset, I must stress that one of the most significant failures prompting this CFPB complaint is U.S. Banks complete lack of a readily available email or online complaint submission system. This omission prevented me from providing highly relevant documentation during my recorded calls with three U.S. Bank ReliaCard employees on XX/XX/XXXX, despite offering multiple times to send supporting material. Each representative rebuffed my offer, even as I detailed critical systemic failures that caused significant financial harm. This procedural gap underscores U.S. Banks inabilityor unwillingnessto address consumer concerns effectively. 

On Monday, XX/XX/XXXX, my U.S. Bank ReliaCard, issued by the Colorado Department of Labor and Employment for unemployment benefits distribution, incurred a negative balance of - {$1000.00}, despite the card 's explicit " No overdraft/credit feature, '' as stated in the official U.S. Bank ReliaCard Fee Schedule ( Document # XXXX ). This overdraft occurred due to multiple systemic failures across U.S. Bank 's platforms, leaving me unable to access essential unemployment benefits during the holiday season. 

( A ) Key Systemic Failures : ( I ) App Balance Error : - From XXXX XXXX XXXX, the ReliaCard app displayed an inflated balance of {$1900.00}, failing to reflect a {$1400.00} withdrawal made on XX/XX/XXXX. The representatives acknowledged this during my calls with the three of them on the afternoon of XX/XX/XXXX. 
- On XX/XX/XXXX at XXXX XXXX, I received a text message confirming this withdrawal and showing a remaining balance of {$78.00}. 
- Despite this text alert, the app continued to display the incorrect {$1900.00} balance for seven consecutive days, leading me to rely on this erroneous information for subsequent transactions. 

( II ) Pre-Authorization System Failure : On Monday, XX/XX/XXXX, U.S. Banks systems allowed a {$1500.00} withdrawal, despite insufficient funds, violating : - The card 's " No overdraft/credit feature, '' as stated in the attached Colorado Fee Schedule. 
- Standard banking pre-authorization protocols, which should have blocked the transaction. 
- Consumer protection requirements for prepaid cards prohibiting overdrafts, as outlined in 12 CFR 1005.18 ( h ) ( CFPB Prepaid Account Rule ). 
- Potential protections under 12 U.S.C. 5531 ( Dodd-Frank Act ), prohibiting unfair or deceptive practices. 

( III ) Details of Failure : - The transaction occurred at XXXX # XXXXXXXX XXXX XXXX XXXX XXXX XXXX, as shown in the monthly statement, demonstrating this was a standard withdrawal that should have been subject to normal authorization protocols. 
- The withdrawal amount ( {$1500.00} ) was within the daily limit but exceeded available funds by {$1000.00}, demonstrating a clear failure of overdraft prevention systems. At the time of the transaction, my available funds were {$500.00}, as later confirmed by the desktop version of the attached XXXX XXXX  monthly statement. 

( B ) Platform Inconsistencies : - From XXXX XXXX XXXX the ReliaCard app displayed an inflated balance of {$1900.00}, failing to reflect a {$1400.00} withdrawal made on XX/XX/XXXX. 
- Smartphone app : Persistently displayed incorrect balances from XXXX XXXX XXXX, creating a false sense of account security. 
- Text Alerts : While accurate on XX/XX/XXXX, critical overdraft notifications on the app- which, per ReliaCard 's website is encouraged for primary use- were delayed by hours on XX/XX/XXXX, arriving only after banks had closed, preventing timely corrective action. 
- Monthly Statements : The smartphone ( XXXX  XXXX ) app-generated PDF statement incorrectly reflected an end-of-month balance of {$500.00}, while the desktop version accurately showed a negative balance of - {$1000.00}. 
- Desktop Access : The ReliaCard website was inaccessible to me via XXXX  browser until XX/XX/XXXX, when the female supervisor advised switching to XXXX XXXX. 

( C ) Holiday Period Impact : The overdraft occurred during a holiday period, exacerbating the situation : - Banks were closed, preventing immediate resolution. 
- Essential unemployment benefits were inaccessible, creating significant financial stress. 
- Alternative financial resources were limited due to holiday closures. 
- Delayed customer service response further compounded the issue. 
- False Marketing Claims : U.S. Bank actively promotes the ReliaCard app as providing " Control at your fingertips, '' on its main page of its website ( as of the evening of XX/XX/XXXX ), but in practice : - The smartphone app displayed incorrect balances for seven consecutive days. 
- Platforms provided conflicting information, undermining trust in the system. 
- Overdraft prevention mechanisms failed, resulting in significant financial harm, directly contradicting the cards no-overdraft policy. 

( D ) Impact and Resolution Attempts : ( I ) Financial Harm : - Loss of access to unemployment benefits during a holiday period. 
- Negative balance of - {$1000.00} on a card explicitly marketed as having no overdraft capability. 
- Financial uncertainty and stress caused by system failures and delayed notifications. 

( II ) Resolution Efforts ( Wednesday, XX/XX/XXXX ) : I contacted U.S. Bank ReliaCard customer service and : - Initially, I spoke with two representatives, the first of whom spoke with me for an hour before the line was cut on her end. She failed to call me back, forcing me to call another representative, who then eventually escalated to the female supervisor. 
- Was promised a 5-business-day investigation, but no immediate explanation or resolution was provided. 
- Again, despite repeat offers, all three representatives refused to accept any documentation on my end supporting my narrative. 
- Further, the third and final representative that I spoke to over several hours ( the female supervisor ) indicated it was unlikely I would receive a refund, pre-emptively dismissing the validity of my complaint. 
- Despite apparent systemic failures, U.S. Bank has yet to explain how these errors occurred or how they will be corrected. 

( E ) Supporting Documentation : ( I ) Transaction Records : - Timestamped text messages showing discrepancies and delayed notifications. 
Smartphone app screenshots displaying incorrect balances from XXXX XXXX XXXX 
- Records showing the timing and sequence of transactions from XXXX XXXX XXXX demonstrating how the app 's incorrect balance display directly led to the overdraft. 
- Conflicting monthly statements, including the app-generated PDF and desktop version. As shown in the attached, the smartphone app version XXXX XXXX Monthly Statement for XX/XX/XXXX reflects an ending balance of {$500.00}. 

( II ) Official Documents : - U.S. Bank ReliaCard Fee Schedule ( # XXXX ), explicitly stating No overdraft/credit feature. 
- Documentation of maximum daily withdrawal limits ( {$1500.00} per day for teller cash withdrawals ), showing my transaction complied with stated limits. 
vU.S. Bank marketing materials promoting app reliability and control. 

( F ) Consumer Protection Violation : This incident raises serious consumer protection concerns regarding : - Access to essential unemployment benefits. 
- Reliability of prepaid card services. 
- Accuracy of account information. 
- Compliance with stated no-overdraft policies. 
- Protection of vulnerable consumers during holiday periods. 

As a recipient of unemployment benefits, I relied on U.S. Banks systems to provide accurate and timely account information. The failures outlined above directly violate consumer protection principles, including the terms of prepaid card usage, by allowing an overdraft and failing to ensure reliable access to benefits.

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