Consumer complaint received 2026-06-22 00:00:00
Product: Mortgage — Home equity loan or line of credit (HELOC)
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: U.S. BANCORP
State: CA

Complaint narrative:
In XX/XX/year>, U.S. Bank notified my husband and me that it had no record of insurance coverage for our property. We've had a US BANK HELOC on this property for over a decade, have never drawn on it to the best of my memory, and have insured the property continuously. We immediately submitted the requested insurance documentation through the bank 's designated portal, ihaveinsurance.com. After submitting the documents, U.S. Bank sent written confirmation via mail stating that it had received the information and that the insurance issue had been resolved. After receiving that written confirmation, we reasonably believed there were no remaining insurance deficiencies. In XX/XX/year>, U.S. Bank sent additional insurance-related letters. Because the bank had already informed us in writing that the insurance matter had been resolved, we were confused about why additional notices were being sent. Rather than ignore the letters, I immediately forwarded them to our XXXX XXXX XXXX, XXXX XXXX, and specifically sought guidance regarding whether any action was required. XXXX XXXX forwarded an inquiry to the insurance processing department and copied me. At that point, I believed I had done exactly what a customer should do : XXXX. Submitted the requested insurance documentation. XXXX. Received written confirmation from the bank that the issue was resolved. XXXX. Forwarded subsequent notices to the bank 's XXXX XXXX representative. XXXX. Requested guidance regarding any further action needed. Neither XXXX XXXX nor anyone else from U.S. Bank informed me that : The new notices allegedly concerned a separate wind insurance requirement ( which to our knowledge, had never been required in the past ) The bank considered us non-compliant ; Force-placed insurance was being contemplated ; Failure to take additional action could result in over {$5000.00} dollars in charges being added to the HELOC ; or Immediate action was required to avoid force-placement. Because I had already received written confirmation that the insurance issue was resolved and because I had escalated the subsequent notices to the bank 's XXXX XXXX representative and heard nothing back, I reasonably believed the matter had been addressed. Importantly, I did not ignore the notices. I forwarded them to the bank and asked for assistance. No one including XXXX XXXX called me or emailed me to explain there was still a problem. Force-Placed Insurance On XX/XX/year>, we received a letter dated XX/XX/year>, informing us that U.S. Bank XXXX XXXX wind insurance on the property retroactive to XX/XX/year>, at a cost of {$5400.00}. This was the first time we understood that U.S. Bank believed any insurance issue remained unresolved. I immediately contacted XXXX XXXX and sought assistance and although he had been my primary contact at the bank for about a decade he referred me to the loan department and was unwilling to help me. A U.S. Bank loan representative in the loan department then informed me that the bank had repeatedly communicated by phone with our insurance carrier regarding the alleged deficiency. However, neither my husband nor I received a direct phone call or email, from U.S. Bank explaining that force-placed insurance was imminent or that a {$5400.00} charge would be imposed. Again, no one in XXXX XXXX, who had handled everything for us for over a decade, communicated a word to us despite repeated inquiries! Had anyone just explained that wind coverage was allegedly missing and that force-placed insurance would otherwise be purchased, we would have immediately resolved the issue or simply closed the unused HELOC. Excessive Insurance Cost After learning of the force-placed coverage, our insurance agent quoted us {$1700.00} for comparable wind, hurricane, etc. coverage. U.S. Bank charged {$5400.00} for force-placed coveragemore than XXXX times the quoted market cost. Contradictory Information Regarding HELOC Closure Once I became aware of the issue, I immediately and repeatedly requested closure of the unused HELOC. I was pleased that in XX/XX/year>, U.S. Bank sent me a written letter stating that nothing was due on the HELOC and that I simply needed to sign and return a document if I wished to close the account. Seemed clear that they waived the forced placed insurance fee. However, when I subsequently contacted the bank to complete the closure process, I was told that the {$5400.00} force-placed insurance charge had to be paid before the HELOC could be closed. These contradictory statements created further confusion. On XXXX hand, the bank 's written communication stated that nothing was due and only a closure form was required. On the other hand, bank representatives informed me that a substantial balance had to be paid before closure would be allowed. Unauthorized Duplicate Withdrawal On XX/XX/year>, a U.S. Bank loan servicing representative, XXXX ( Badge # ZVQ ), advised me that paying the {$5400.00} charge would stop additional insurance-related charges from accruing while my request for review, refund, and closure remained pending. Based on that representation, I authorized a single payment of {$5400.00} and again requested closure of the HELOC. The following day, U.S. Bank generated notices showing that XXXX separate withdrawals of {$5400.00} had been initiated from my linked XXXX XXXX Bank account. I authorized only XXXX payment. The second withdrawal was unauthorized. When I contacted U.S. Bank, I was informed that the bank would not immediately return the improperly withdrawn funds and that I would instead have to wait approximately XXXX weeks for reimbursement by paper check. As a result, U.S. Bank removed an additional {$5400.00} from my account without authorization and retained possession of those funds while requiring me to wait for the bank 's internal correction process. Why I Believe U.S. Bank Acted Improperly This situation appears to involve potential violations of federal mortgage-servicing and consumer-protection requirements, including : Failure to provide clear and effective notice before charging force-placed insurance as required under Regulation X, 12 C.F.R. 1024.37 ; Failure to exercise reasonable diligence in obtaining insurance information already provided by the borrower ; Unfair, deceptive, or abusive acts or practices ( UDAAP ) under the Consumer Financial Protection Act, including sending written confirmation that an insurance issue was resolved while later imposing force-placed insurance based on allegedly unresolved coverage concerns ; Providing contradictory information regarding whether any balance was due before HELOC closure ; Unauthorized electronic fund withdrawal and failure to promptly correct the error after removing funds that were not authorized by the account holder. I request that regulators investigate whether U.S. Bank 's actions complied with applicable federal servicing, force-placed insurance, and consumer-protection requirements.

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