Consumer complaint received 2026-03-06 00:00:00
Product: Checking or savings account — Checking account
Issue: Problem with a lender or other company charging your account — Can't stop withdrawals from your account
Company: U.S. BANCORP
State: CA

Complaint narrative:
Subject : Complaint Against U.S. Bank Improper Dishonor of Payment Causing Business Loss Dear Sir/Madam , My name is XXXX XXXX , and I am a small business owner. I am submitting this complaint against U.S. Bank regarding a serious banking error that has caused significant financial damage to my business. I have been banking with U.S. Bank for approximately five years. I originally opened my business account with XXXX XXXX in XXXX when I purchased my business, and after XXXX XXXX merged with U.S. Bank, my account continued with U.S. Bank. I have maintained my business checking account as well as merchant services with this bank and have never experienced any major issues until now. On XX/XX/XXXX, a routine vendor payment of {$1300.00} to my regular supplier, XXXX XXXX, was dishonored or returned by U.S. Bank. This vendor is not new and receives regular weekly payments from my account. At the time the payment was dishonored, my account balance was {$10000.00}, which was more than sufficient to cover the payment. Because of this unexpected dishonor, I immediately contacted U.S. Bank customer service. During my call, the representative informed me that no payment had been returned. I request that the CFPB review the recorded call between myself and the banks customer support. I also contacted my local U.S. Bank branch manager, but I did not receive a clear or satisfactory explanation for why the payment was dishonored despite sufficient funds in my account. This banking error has severely impacted my business operations. XXXX XXXX is my primary distributor for beer and liquor products. After the payment was returned, the supplier informed me that my account no longer qualifies for a XXXX balance status under our credit agreement. Because of this, the supplier has stopped deliveries to my business. Without product deliveries, I am unable to operate normally and I expect to lose approximately {$25000.00} in sales within a two-week period. To further demonstrate the inconsistency, another payment to the same vendor in the amount of {$2100.00} was successfully processed and cleared by the bank on XX/XX/XXXX. However, my supplier has still refused delivery because they state that my account does not have a XXXX balance status due to the earlier returned payment. I requested that the supplier attempt the payment again, but they informed me that the transaction was processed through a third-party fintech payment system and that they have already emailed the payment processor to withdraw the returned payment record, but the issue has still not been corrected. I always try to maintain sufficient funds in my business account. Like any small business, occasional automatic vendor withdrawals may occur. I previously discussed overdraft protection with U.S. Bank and requested a small overdraft buffer ( less than {$1000.00} ) for unexpected situations. Last month, the bank suggested that I apply for a credit card and informed me that if an overdraft occurred they could pull funds from the credit card as a backup. This appeared to provide a backup safety plan, but despite this arrangement the bank still allowed a legitimate payment to be dishonored even though my account had {$10000.00} on XX/XX/XXXX. This error has damaged my relationship with my supplier and disrupted my business operations.I respectfully request that the Consumer Financial Protection Bureau investigate this matter and require U.S. Bank to Provide a full explanation of why the payment was dishonored despite sufficient funds.Assist in correcting the payment issue with my vendor if possible. Compensate my business for the financial losses resulting from this mistake, currently estimated at approximately {$25000.00} in lost sales.Small businesses depend on accurate and reliable banking services. Errors of this nature can severely harm business operations and supplier relationships.If you need any documentation I will provide you. XXXX XXXX ( XXXX )

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