Consumer complaint received 2024-03-02 00:00:00
Product: Checking or savings account — Checking account
Issue: Managing an account — Deposits and withdrawals
Company: U.S. BANCORP
State: CA

Complaint narrative:
US Bank put an unreasonable hold on a check I deposited, and then refused to provide me with a written justification for the hold, as required under 12 CFR 229. 

I deposited a check, payable to me and endorsed in ink by me, into a US Bank ATM located at the US Bank office in XXXX, California. The payable amount of the check was {$7500.00}, and was drawn on a US-based bank. When the deposit was made, I was not apprised that a hold, of any kind, would be placed on the check. The deposit of the check into the ATM took place on XX/XX/XXXX, a Saturday. 

On Tuesday, XX/XX/XXXX my online bank statement from US Bank showed the {$7500.00} deposit as COMPLETED. My checking account balance was shown to be roughly {$7100.00}, reflecting two small ATM withdrawls and about six debit card transactions, all made subsequent to the deposit of the check in the ATM. 

In addition to the above-listed legitimate debits from my checking account, my online statement showed a {$36.00} overdraft fee debit, despite my account history before, and subsequent to, the {$7500.00} deposit, never being negative. 

Also, on Tuesday, XX/XX/XXXX, I received an email from US Bank, alerting me that my account had a negative balance. The alleged negative balance did not appear on my online bank statement at that time, but an overdraft fee ( see above ) was shown as being deducted from my ( considerable ) checking account balance. 

On Tuesday, XX/XX/XXXX, I attempted to resolve the discrepancies with an employee at the US Bank office in XXXX ( where the check had been deposited the previous Saturday ). 

The US Bank employee stated that a hold had been placed on the {$7500.00} check, and that NO funds from that check would be available to me before Tuesday, XX/XX/XXXX. I was told that my checking account balance was overdrawn by over {$300.00}, due to the purchases made after depositing the check. 

When I asked the US Bank employee for the reason for the hold, I was told the check exceeded a certain amount, and was considered a " large deposit ''. The employee did not provide me with a written statement of the hold, its amount, its duration, and its justification. The employee did not inform me that a " large deposit '' can only be withheld for an amount in excess of {$5500.00}, such that {$5500.00} be available not later than XXXX business days after the date of a " large '' check 's deposit. 

On Friday, XX/XX/XXXX I returned to US Bank and spoke with the same employee, requesting a written statement regarding the ( continued ) hold on my {$7500.00} deposit. I asked the employee to release {$5500.00} to my account, in accordance with 12 CFR 229, e.g. exception for large deposit amount. The employee did not provide me with a written statement regarding the hold, and did not release {$5500.00} to my account. 

I showed the US Bank employee a document from the paying bank, showing that the {$7500.00} deposited check had cleared on XX/XX/XXXX ; at that time, the funds from the check were in the possession of US Bank. When I presented the document to the US Bank employee, it was dismissed as irrelevant to the situation. 

The US Bank employee then conferred, via telephone, for approximately XXXX XXXX with someone, whom I presume was an off-site a supervisor. At the end of that lengthy process, the US bank employee told me that ( 1 ) the hold on the funds would remain in force until XX/XX/XXXX ; ( 2 ) the US Bank employee would not be providing me with a written statement, of any kind, including the reason for withhold my funds ; and ( 3 ) US Bank would mail ( USPS ) me the requested written statement regarding the hold at an unspecified time in the future. 

My arrangement with US Bank is to receive NO mailed statements, and instead rely on online statements and email only ; US Bank 's XXXX notice of my allegedly negative checking account balance was sent to me via email ; the US Bank employee did not agree to have the written statement emailed to me. 

When I requested a verbal explanation for the ( continued ) hold on the check, the US Bank employee dissembled, and provided each of the following excuses, in turn : - my checking account balance was insufficient for the funds to be deposited therein - the check was " foreign '', and thus subject to exceptional handling and a hold - the check was " non-local '' and thus subject to exceptional handling and a hold - the check was drawn on a " small bank '', requiring exceptional handing and a hold - the check was from an insurance company, requiring exceptional handling and a hold - the ATM " didn't know '' how to deposit the check in my account with a small balance- the ATM rejected the check, and cancelled the deposit - the check required exceptional handling by a bank teller, resulting in a hold When I presented a Federal Reserve press release from XXXX, XXXX, with a circled region explaining that there was no such thing as a " non-local '' check among US-based banks, the employee threatened to call the police and have me arrested. 

US Bank was unreasonable in continuing to hold the funds on XX/XX/XXXX, despite being shown proof that the paying bank showed the funds as having been paid on XX/XX/XXXX. US Bank 's own records would also show the funds being in their possession. 

US Bank sought a negligible earned interest, or fractional reserve balance, benefit to itself, with a callous, sociopathic disregard for the inconvenience, irritation and physical distress the unjustified hold would create for me. As a result of US Bank 's actions, I was, and still am, deprived of life-saving medical care and medications that are not available to me due to a lack of available funds. My XXXX XXXX presents significant XXXX XXXX without treatment ; US Bank has increased that XXXX XXXX XXXX XXXX XXXX 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