Consumer complaint received 2025-11-01 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Other features, terms, or problems — Other problem
Company: U.S. BANCORP
State: CA

Complaint narrative:
I am filing this continued complaint regarding U.S. Banks mishandling of my U.S. Bank XXXX XXXX account, which the bank has admitted in writing was closed in error. Although I remained able to access my online account and continued making on-time payments, U.S. Bank wrongly restricted my ability to use the card or access available credit for approximately nine monthsfrom XX/XX/XXXX through XX/XX/XXXX. 

It is deeply concerning that I must repeatedly file complaints with the Consumer Financial Protection Bureau to obtain remedies that are clearly required under established federal law. Why must consumers continually invoke the CFPB to compel banks to follow well-known obligationssuch as refunding interest and fees stemming from their own admitted errorsinstead of U.S. Bank performing these corrections automatically, as the law requires? 

I am requesting that all interest improperly charged through XX/XX/XXXX, XXXX date US Bank disclosed the erroneous account closurebe reimbursed in full. Additionally, the interest charge assessed on or around XX/XX/XXXX, which was posted after the account had already been misclassified or closed in error, must also be refunded in its entirety. These adjustments are necessary to restore the account to its proper standing and to ensure full compliance with applicable credit reporting and consumer protection laws. 

In its XX/XX/XXXX response to my prior CFPB complaint, Consumer Financial Protection Bureau case # XXXX, U.S. Bank stated : The error that resulted in the account being incorrectly closed occurred in XX/XX/XXXX, following a clerical error in processing a debt-management power of attorney. 


I never authorized or participated in any debt-management program. The account was closed in error without any formal written notice. For months afterward, I made regular paymentsmany above the minimum dueand my statements continued to accrue finance charges and interest even though I could no longer use the card. 

During this same period U.S. Bank repeatedly reduced my credit limit, which inflated my balance-to-limit ratio and negatively affected my credit profile. As a result, I was denied new credit by both U.S. Bank ( XX/XX/XXXX ) and XXXX XXXX Bank ( XX/XX/XXXX ). These denials cite high utilization and time since delinquency too recent, conditions created by U.S. Banks own actions. 

U.S. Bank has since restored normal reporting and applied a total of {$160.00} in credits ( {$110.00} fee waiver + {$50.00} goodwill ). While appreciated, that amount does not address the core issueinterest and finance charges that accrued during the erroneous closure period when I was prevented from using the credit line. Under the Truth in Lending Act ( 15 U.S.C. 1601 et seq. ), the Fair Credit Billing Act ( 15 U.S.C. 1666 ), and Regulation Z ( 12 C.F.R. 1026.13 ( e ) ), once a billing or servicing error is identified, the creditor must refund all related finance charges and fees to restore the consumer to the position they would have been in had the error not occurred.

Although my current credit reporting now appears accurate, the financial harm from U.S. Banks admitted error remains unresolved. The bank profited from interest and fees charged while I was paying responsibly but denied access to my own credit. This practice constitutes an unfair act or practice under 12 U.S.C. 5531 ( UDAAP ) because it caused substantial injury the consumer could not reasonably avoid.

As documented in attached account portal screenshot evidence, .. U.S. Bank charged monthly interest throughout the nine-month period, amounting to {$280.00}, when the account was closed to new use. These screenshots, taken directly from my online account, confirm that interest continued to accrue from XX/XX/XXXX through XX/XX/XXXX despite the banks admitted servicing error. Under 15 U.S.C. 1666 and 12 C.F.R. 1026.13 ( e ), these {$280.00} in interest charges must be refunded in full. 

The banks statement that it credited late fees as a courtesy is misleading and inaccurate. Under the law, any fees or interest assessed after an account was erroneously closed or misreported must be refunded as a matter of compliance, not goodwill. Therefore, this so-called courtesy credit was not a concession, but a legal obligation, and I expect further compensation for the broader harm caused by XXXX  continued misreporting and account mishandling.

Late-Fee Refund and Remaining Restitution U.S. Bank has acknowledged its internal error and issued partial credits totaling {$160.00} ( {$110.00} in waived late fees and a {$50.00} appreciation credit ). While appreciated, these adjustments were characterized as courtesy credits rather than as required corrections under law. Under the Fair Credit Billing Act ( 15 U.S.C. 1666 ( a ) ( 3 ) ( B ) ) and Regulation Z ( 12 C.F.R. 1026.13 ( e ) ( 1 ) ), when a creditor identifies a billing or servicing error, it must credit the consumers account with all finance charges, late fees, and other charges totaled above, that accrued as a result of that error. Because U.S. Bank admitted that my account was closed in error, the refunded late fees confirm the errors financial impactbut the bank remains obligated to refund all remaining interest and finance charges from XX/XX/XXXX through XX/XX/XXXX. Treating these mandatory refunds as mere courtesy adjustments does not satisfy the corrective-action requirements of TILA/FCBA, nor does it remedy the ongoing financial harm.

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