Consumer complaint received 2026-01-23 00:00:00
Product: Money transfer, virtual currency, or money service — Check cashing service
Issue: Problem with customer service — 
Company: U.S. BANCORP
State: IL

Complaint narrative:
On XX/XX/XXXX, I deposited a check in the amount of {$16000.00} into my U.S. Bank account using the U.S. Bank mobile deposit application. The check was issued by a domestic U.S.-based company and deposited into an account that has been open and in good standing since XX/XX/XXXX, with no history of overdrafts, fraud, or returned items. 

Later that same day, I received an automated email from U.S. Bank stating that {$11000.00} of the deposit would be placed on hold until XX/XX/XXXX, resulting in a XXXX ( XXXX ) business day hold. No individualized explanation or factual basis was provided other than a generic statement from the XXXX XXXX that the decision was made by U.S. Banks fraud and risk team.

This extended hold was imposed despite the following : -- The account is not new and has been maintained in good standing for several years.

-- The check was from a legitimate, domestic U.S. company. 
-- No evidence or explanation was provided demonstrating reasonable cause. 

I contacted my local U.S. Bank branch to request a review or expedited release of funds. The XXXX XXXX and staff confirmed they did not have the authority to escalate or override the hold, and no substantive investigation or individualized review was offered. I was told the decision could not be changed. 

As a direct result of this extended and unexplained hold, I missed a scheduled direct deposit payroll payment to contractors on XX/XX/XXXX, which caused disruption to my business operations and negatively impacted my relationship with my payroll processor and contractors. 

During this interaction, instead of providing a resolution or meaningful review, U.S. Bank branch staff attempted to sell me a working capital loan, suggesting borrowing funds to avoid future disruptions caused by similar holds.

This created the appearance that U.S. Bank was leveraging its own discretionary hold decision to market credit products, rather than acting in good faith to release legitimately deposited funds.

I believe U.S. Banks actions raise the following concerns : 1. Failure to act in good faith and fair dealing by imposing a prolonged hold without articulating specific, reasonable cause tied to my account or the deposited check.

2. Inadequate notice under Regulation CC ( 12 CFR Part 229 ), as the hold notification did not meaningfully explain why the deposit qualified for an extended exception hold.

3. Improper use of discretionary authority, where discretion was exercised arbitrarily rather than based on documented risk.

4. Resulting financial and reputational harm, including missed payroll obligations and damage to established business relationships.

5. Potential unfair practice, where the bank withheld access to deposited funds while simultaneously attempting to sell a loan product as a workaround.

I am requesting that the CFPB review whether U.S. Bank complied with its obligations under Regulation CC, its own deposit account agreement, and the implied covenant of good faith and fair dealing, and whether the conduct described above constitutes an unfair or abusive business practice.

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