U.S. Bank, St. Paul, MN - upset about overdraft charges - many reasons to be upset with treatment

Complaints.com received the following consumer message on September 28, 2002:

From:

RE: U.S. Bank, St. Paul, MN - upset about overdraft charges - many reasons to be upset with treatment

I call it a bank scam. Call it what you will.

Here's what happened:

I carried a checking account at U S. Bank for five years or more in good standing.

In May, 2002. I received a call from a collection agency demanding payment of a U S Bank account in my name for $196.00. I contacted the bank and they alleged that my checking account was overdrawn by about thirteen dollars ($13).

Instead of calling or letting me know, they kept me uninformed and proceeded to impose runaway "overdraft charges" covering a two and one half (2 1/2) months period.

The bank's position is that their charges were consistent with account agreement andthat they sent statements. It turned out that they used an incorrect address. They had ignored or overlooked a change of address notice in January, 2002. I did not receive any statement, and they did not attempt to contact me by telephone.

The charges were not consistent with account agreement because I was not notified and allowed to rectify any overdraft. By the way, up to now they have not provided the cancelled check document to support any overdraft. They sold the account for collection to a private collection agency, before the bank, itself, even tried to collect on it. The sale to the collection agency included not just the account, $196, but also my unlisted telephone number. In the meantime, the collection agency is not pursuing collection from me, perhaps recognizing

that the bank's charges were underhanded, and disputed. I would like to end it there, but I continue to demand proof of overdraft from the bank and to make them understand of the misguided actions by bank employees. I'd like to have the bank apologize for trying to impose "bogus" overdraft charges, and to send me proof of what they paid against "insufficient" funds. The checking account in question was in the process of being phased out by me, in favor of a active account elsewhere at another bank. U S Bank have previously proved itself in disservice before by bouncing a check in error, and by inability to justify degrading a loan account by mere $2000.

The bank wrote me an apology for the check that they bounced in error; and they approved a new loan of $50,000, as if to convey the message that, yes, they erred in degrading a $22,000 loan to $20,000 .just weeks before. I cancelled the $50,000 loan as they were about to cut a check. The existing loan , originally $20,000, has a balance of about $6,000 and the monthly installments due are prepaid to May, 2004.

The bank, under a CEO John Grunhoffer, ignored previous complaint about the $22000 loan application, which was degraded to $20,000, without reasonable explanation. I had met with a district manager, Ross Carey, who also could not explain the adverse action but was well advised that a new application for $50,000 had been approved. U S Bank effectively concealed its underhanded intentions regarding the "overdraft" of $13, turning it into $196, and selling the account to a collection agency.

That they included my unlisted phone number in the sale constituted a violation of privacy.

I am pursuing the matter as additional issue and I have yet to receive a response to letters dated August 7, 2002, and Sept. 14, 2002, addressed to U S Bank, P. O. Box 1800, St. Paul MN 55101.