November 26, 2023

U.S. Bank Problems and Solutions

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U.S. Bank may be one of the best-established banks in the U.S. But it's not exactly problem-free. Here's what you may encounter.

Despite being one of the biggest banks in the country, U.S. Bank has its drawbacks.

Some of which can be easily solved (like expensive overdraft fees). While other problems may be heavy enough that you're better off with other banks (like fraudulent practices).

Keep reading to know if this bank can be worth an account. If you've already encountered problems with them, you may find the right solution in this article, too.

Is US Bank Having Issues Right Now?

U.S. Bank has issues that affect certain customers. Here are some of what you need to watch out for.

Is U.S. Bank a reputable bank?
U.S. Bank is a reputable bank with U.S. Bancorp as its parent company, which ranks among the highest in terms of assets. It was established in 1929 and currently serves more than 11 million customers nationwide.

What issue have you experienced most frequently with U.S. Bank?

Union Bank Transition Issues

U.S. Bank acquired Union Bank (formerly a Japanese-owned subsidiary) last December 2022. [1] Although it's not uncommon to have problems with transitioning accounts, it was still frustrating for Union Bank customers to encounter them.

For example, several depositors were asked for a 5-digit PIN when accessing the U.S. Bank's migration tool when they only had a 4-digit PIN. U.S. Bank responded that some banking features are unavailable due to the transition with Union Bank. [2]

This means they could not log into their accounts and conduct bill payments or other time-sensitive transactions, which caused them delays and late charges.[3]

What You Can Do:
Most, if not all, Union Bank accounts have already been converted to U.S. Bank accounts. In any case, continue monitoring your newly transitioned U.S. Bank accounts since you may still find issues in them.

If you still have unresolved transition problems, you can call their 24/7 customer support at 800-USBANKS (872-2657). You can count on U.S. Bank's support team to be responsive, according to several customers.

Fraudulent practices

For over a decade, U.S. Bank has unlawfully used its consumer data to create fictitious accounts. Specifically, some U.S. Bank employees issued credit cards to several customers without their knowledge to meet sales quota.

In spite of being aware of what was happening, U.S. Bank did not do anything to prevent and detect these unauthorized accounts. This resulted in accumulated fees and negative credit profiles for the affected customers.

When found out in 2022, the Consumer Financial Protection Bureau (CFPB) fined the bank a penalty of nearly $37.5 million. The bank was also ordered to return all unlawfully charged fees from its customers.[4]

What You Can Do:
If you were impacted by this fraudulent practice, you should be able to get a refund for all fees incurred from the unauthorized account (plus interest).

You should also keep track of your U.S. Bank accounts and watch for any irregularities. Report anything that seems suspicious as soon as possible.

Low APYs with Minimum Requirements

U.S. Bank's APY is insignificant compared to other banks. Plus, the minimum investment requirement can make it pricey to start.

For example, U.S. Bank's Elite Money Market account can get you a slightly higher interest rate than a U.S. Standard Savings account. But you're required to invest at least $25,000.[5]

Is U.S. Bank savings account good?
A U.S. Bank Standard Savings account can be a good option for minimal savings. Although it has a monthly fee, it is fairly easy to waive it with a $300 minimum daily balance requirement.[6] You can also waive the fee through other means.

What You Can Do:
U.S. Bank offers a CD Special with competitive rates. But if you're looking for a savings account, you can opt for high-yield savings accounts from other banks for higher APYs.

You can compare the best savings rates below.

Compare Savings Account Offers

Compare CDs

Expensive Overdraft Fees

Some banks like Bank of America have significantly reduced their overdraft fees. But U.S. Bank continues to charge $36 per item with its Smartly Checking account.[7]

This can be pricey, especially since you can be charged up to 4 overdraft fees per day for a total of $144 per day.[8]

What You Can Do:
U.S. Bank has an Overdraft Fee Forgiven program. If your account is overdrawn by $50 or less, U.S. Bank will not charge an overdraft fee.

If you overdraw by over $50, the overdraft fee can be waived if you make a deposit to cover the overdrawn amount by the end of the next business day.

You can also link an existing U.S. Bank savings or money market account. U.S. Bank will transfer money from the linked savings account to cover any overdraft.

A linked credit account can also get you a lower overdraft protection transfer fee, which costs $12.50 per item.

Limited Physical Branches

U.S. Bank's physical branches are mostly concentrated in the Western and Midwest regions.[9] You can't open a personal bank account with them if there is no physical branch in your state.

What You Can Do:
Consider a different bank or credit union if you live in an area where U.S. Bank branches are not available. You can also give online banks a shot.

Does U.S. Bank operate in New York?
U.S. Bank does not provide personal or consumer banking services in New York. It only provides commercial and private wealth management services in New York.

Compare Checking Account Offers

Poor customer service

U.S. Bank has garnered lots of negative feedback with its customer service. Some customers complained that, although they had a smooth experience at the start, they received a change in service over time.[10]

This made them frustrated, with some ending up closing their accounts.[11]

What You Can Do:
Explain any issue or concern you may have by clearly providing specific details. This can help the customer service team understand and solve your problem better.

Also, although issues can be frustrating, it's best to stay calm when addressing your concerns. This can help lead you and the support team to a productive resolution.

How satisfied are you with the resolution process after reporting a problem to U.S. Bank?

Bottom Line

While U.S. Bank has its fair share of problems, it's important to note that others may paint a different picture based on their experiences.

These problems can help you see the flip side if you already know the benefits of an account with U.S. Bank. If you want a fuller picture, you can check out this U.S. Bank review.

What change would most improve your experience with U.S. Bank?

References

  1. ^ U.S. Bancorp. U.S. Bancorp Completes Acquisition of Union Bank, Retrieved 09/20/2023
  2. ^ X. U.S. Bank on X, Retrieved 11/01/2023
  3. ^ X. Soozzone on X, Retrieved 11/01/2023
  4. ^ Consumer Financial Protection Bureau. CFPB Fines U.S. Bank $37.5 Million for Illegally Exploiting Personal Data to Open Sham Accounts for Unsuspecting Customers, Retrieved 10/21/2023
  5. ^ U.S. Bank. Elite Money Market Account, Retrieved 11/01/2023
  6. ^ U.S. Bank. How to get a monthly maintenance fee waiver, Retrieved 11/01/2023
  7. ^ U.S. Bank. Consumer Pricing Information, Retrieved 10/21/2023
  8. ^ U.S. Bank. What types of overdraft options does U.S. Bank offer?, Retrieved 11/01/2023
  9. ^ U.S. Bank. Fact sheet, Retrieved 11/01/2023
  10. ^ Trustpilot. U.S. Bank Reviews, Retrieved 11/01/2023
  11. ^ Trustpilot. U.S. Bank Reviews, Retrieved 11/01/2023
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Penelope Besana is a research analyst at CreditDonkey, a bank comparison and reviews website. Write to Penelope Besana at penelope.besana@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.

Note: This website is made possible through financial relationships with some of the products and services mentioned on this site. We may receive compensation if you shop through links in our content. You do not have to use our links, but you help support CreditDonkey if you do.

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