Epic Banking Fail

I don’t like airing dirty laundry. It does no good in most personal and professional matters. However, some companies only resolve problems when forced to address them in a public form. So prepare to read the gory details of U.S. Bank failing to refinance my truck.

They were supposed to pay off my old loan on September 21, 2012. It’s November 1, 2012 and it still hasn’t been done.

Before you read the letter I sent to U.S. Bank (priority mail with delivery confirmation), let’s set some expectations:

  1. I am only putting this out in public because six weeks of dealing with two corporations have not brought me any resolution. If the bank in question had fixed the problem I wouldn’t take this course of action.
  2. If you are planning an auto refinance, read this and understand how it may go wrong.
  3. There are some details missing from my letter. I removed sensitive personal information from the attached letter on purpose. Duh.
  4. I am not looking for your stories about bad bank experiences. This is not a forum to bash your current/former bank. I want my problem fixed, and doing it through multiple levels customer service hasn’t worked. Now we try a public forum.
  5. Please don’t recommend I use your bank or credit union. I did the research before I took this loan, this was the best rate on the market and I have a contract with U.S. Bank. I will honor my end of the agreement when they honor theirs.
  6. The people at U.S. Bank customer service seem to genuinely want to fix my problem. But they haven’t. I’m a bit past “we’ll call you back” and “researching your problem” at this point. Maybe someone who can fix my problem will read this post and figure things out.
  7. If you’re not with U.S. Bank, don’t bother recommending a course of action. I know what my legal options are, and I will use them if required. When a libertarian is ready to invoke “the government” you’ve done screwed up big time.

Now, on to the details. This is an edited version of a letter sent to U.S. Bank on November 1, 2012.

U.S. BANK / P.O. Box 790179 / St. Louis, MO 63179-0179

To Whom It May Concern:

This letter is in reference to Auto Loan Account ######## for [LEGAL NAME REDACTED], which was issued on September 17, 2012 to refinance a FORD CREDIT loan for a FORD SUPER DUTY F250 DIESEL (VIN ############).

As of November 1, 2012, U.S. BANK has failed to properly issue payoff payment to FORD CREDIT. This failure has put me in bad payment standing with FORD CREDIT.

U.S. BANK presented me with a photocopy of what was claimed to be a cancelled cashier’s check that was cleared by FORD CREDIT for the payoff balance of my auto loan. Even though U.S. BANK claims this check cleared on September 24, 2012, the image does not clearly indicate that FORD CREDIT was the entity that received and processed payment.

I have spoken with Kathy XXXXXX of U.S. BANK (Phone: XXX-XXX-XXXX) on October 31, 2012. The check that was issued by U.S. BANK on September 21, 2012 was sent to WELLS FARGO by mistake. WELLS FARGO improperly cashed the check on September 24, 2012. Rather than verify the proper processing of this payment, U.S. BANK repeatedly informed me that FORD CREDIT has received payment for the loan. Based on this incorrect information I ceased payment to FORD CREDIT and asked that they properly credit my loan account.

Now that U.S. BANK acknowledges the processing error, I require immediate action from U.S. BANK to properly service the loan and repair damages done to my credit history.

As of November 1, 2012, FORD CREDIT does not acknowledge receipt of payment from U.S. BANK and has been informed of errors U.S. BANK has made in issuing the loan payoff. My last contact at FORD CREDIT is XXXXX XXXXX. Mr. XXXXX informs me FORD CREDIT lists me as 35 days overdue, despite the fact that U.S. BANK expects an initial payment on November 1, 2012 for a loan that they have failed to properly service. Mr. XXXXX will attempt to have marks against my credit history removed, but this will not be possible until my account is paid and in good standing.

As of November 1, these are the facts:

  • Prior to executing the loan with U.S. BANK, my FORD CREDIT account was in good standing.
  • FORD CREDIT is reporting me as a late pay to one or more credit agencies, which is based on the inability of U.S. BANK to satisfy their loan obligations rather than my ability to make payments.
  • FORD CREDIT Payoff Balance at origination of loan (2012-09-17) was $[MONEY].
  • FORD CREDIT Payoff Balance as of 2012-10-31 is $[MONEY++].
  • Difference between payoff balance from 2012-09-17 to 2012-10-31 is $225.10.
  • Payments due to FORD CREDIT for charges from 2012-09-17 to 2012-10-31 are $1,098.76.
  • If payment is delayed until 2012-11-27, amount due to FORD CREDIT is $1,691.84.

As of October 31, I have accrued an additional cost of $1323.86 due to U.S. BANK’s inability to execute their obligations of the loan agreement. This amount increases each day U.S. BANK is unable to meet their legal obligations to pay FORD CREDIT. Due to this negligence, I am demanding the following actions be taken by U.S. BANK by close of business on November 9, 2012:

  1. U.S Bank will issue full payment to FORD CREDIT for my payoff balance, past-due payments, interest and late payments without modifying the terms of my U.S. BANK auto loan. My payments, amount financed, total payments due, finance charge and APR will not be modified.
  2. U.S. BANK will refund the $XXX.XX Documentation Fee to [LEGAL NAME REDACTED], either by physical check or credit to the auto loan account. U.S. BANK has not demonstrated any value to the customer via this fee, given errors in issuing payment have caused problems for the customer that threaten his credit rating and vehicle ownership.
  3. U.S. BANK will not charge [LEGAL NAME REDACTED] for late payments on the November 1, 2012 payment. U.S. BANK will not report this as a late payment to any credit reporting agency. U.S. BANK will receive proper payment from [LEGAL NAME REDACTED] when they have demonstrated that their obligation has been met by a zero balance on the FORD CREDIT account associated with VIN ############.
  4. U.S. BANK will pay for a minimum of 12 months of credit monitoring services for [LEGAL NAME REDACTED]. This service will be required in the event FORD CREDIT or related collection agencies attempt to repossess the FORD F250, improperly report payment status to creditors or otherwise cause financial harm to [LEGAL NAME REDACTED] due to errors made by U.S. BANK.
  5. U.S. BANK will issue a letter for FORD CREDIT that explains the nature of the payment error and accept that damage to my credit was due to their inability to properly issue the loan payoff payment. U.S. BANK will provide me with a copy of this letter by certified mail.
  6. U.S. BANK will issue a letter to WELLS FARGO as an official complaint against their payment processing center for cashing a check that was not made out to WELLS FARGO. U.S. BANK will provide a copy of this letter to me by certified mail. I am researching how to make a formal complaint against WELLS FARGO, since their actions may constitute check fraud and can be shown to have done harm to my credit rating.
  7. U.S. BANK will issue a letter to me explaining how the errors in issuing the loan payoff were resolved. This letter will be sent via certified mail for my file, in the event that I require proof to repair my credit history.

If proof cannot be provided to me on or before close of business November 9, 2012 that these actions have been taken, arbitration or other legal action will be taken against U.S. BANK to correct this issue. I hope that this problem can be sorted out without the use of lawyers, arbitration or members of the press who specialize in consumer action.

This is not been a good first experience with U.S. BANK and I expect better of companies that represent my financial interests. I appreciate your prompt attention to this issue.


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