Consumer complaint received 2025-07-28 00:00:00
Product: Prepaid card — Government benefit card
Issue: Problem getting a card or closing an account — Don't want a card provided by your employer or the government
Company: U.S. BANCORP
State: NC

Complaint narrative:
RE : Complaint Unlawful Account Lockout, Biometric Demands, and Forced Enrollment into US Bank ReliaCard for XXXX XXXX  Benefits To Whom It XXXX Concern : I am writing to file a formal complaint and demand immediate investigation regarding serious legal violations and financial harm I am experiencing as a recipient of North Carolina XXXX  benefits. I have been : Forced into enrollment with the US Bank ReliaCard without informed consent or the option to receive payments by direct deposit or paper check, and Locked out of my XXXX  account, denied access to my legally entitled funds, unless I submit personal biometric data ( a selfie and identification ) a condition I never agreed to contractually, and which violates several legal protections. 

XXXX. Coerced Financial Steering & Lack of Alternatives I was automatically enrolled in the US Bank ReliaCard program, a private financial product, without : Prior notice or informed consent, The opportunity to opt-out, or A clear disclosure of alternative payment options. 

This process violates the Electronic Fund Transfer Act ( XXXX ) and Regulation XXXX, which prohibits institutions from forcing consumers to use a particular financial institution as a condition of receiving government benefits. This also raises serious concerns under consumer protection law and implies collusion between the North Carolina Department XXXX XXXX XXXX ( XXXX ) and US Bank to steer beneficiaries into a private financial arrangement against their will. 

XXXX. Unlawful Account Lockout & Withholding of Funds As of [ insert date of lockout ], I have been locked out of my unemployment account and denied access to my own benefits, unless I submit biometric data a grossly unlawful requirement not disclosed or agreed to in any enforceable contract. 

This is now the second time Ive been locked out by US Bank without just cause or due process. I have attempted to use XXXX different bank accounts, and most are rejected or incompatible with their system, effectively trapping me into using their XXXX XXXX card. This lack of interoperability is discriminatory and exclusionary. 

XXXX. Demand for Immediate Action I formally request the following : Immediate release of all withheld unemployment benefits in full ; Proof of lawful authority and enforceable contract that binds me to use the US Bank ReliaCard ; A full list of compatible and approved banks and direct deposit alternatives ; A copy of any data privacy agreements, including justification for the biometric verification demand ; Immediate investigation into the legal structure and agreements between XXXX  XXXX and US Bank, including whether the public is being unjustly monetized or surveilled through forced private contracts. 

Conclusion The coercive and non-transparent relationship between XXXX  XXXX and US Bank has resulted in unlawful withholding of my compensation, severe stress, and violation of my rights under both state and federal law. I do not consent to being forced into private financial instruments. This arrangement must be scrutinized and halted. 

Please confirm receipt of this complaint and advise me on the next steps. I am prepared to escalate this to civil litigation and media exposure if these abuses are not promptly addressed. 

Respectfully, XXXX XXXX XXXX BY : XXXX XXXX XXXX ALL XXXX RESERVED, WITHOUT RECOURSE 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