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US Bank Offers Free Rewards Account, Then Cancels Offer

This article was written by in Banking. 10 comments.

Xenocid is having a frustrating experience with US Bank. A customer service representative moved his account into a new tier, offering a free account with cash back rewards when using his debit card. Xenocid promptly received a letter saying they would start charging $25 per month for this free account.

Here’s his side of the story.

However lately when I was depositing some checks the cashier asked me why I have the simplest checking account without any extra perks? After all I had some money there and got a sizable monthly direct deposit and had a credit card with them, so I definitely qualified for their premium offerings…

Few days later I spoke with a personal banker and he happily converted my account to their premium offering, citing a cash back as one of their benefits… He looked at his screen and said that in fact I only receive cash back on my credit card transactions… It doesn’t work with my debit card at all. I have to use credit card. I said that this is not what he told me previously when he explained perks and benefits of this premium checking account. I even pointed to the booklet that HE showed me, which clearly stated that they have cash back for debit cards. He said that the booklet is old and they canceled cash back program for debit cards two years ago. I took my debit card and pointed to the “Cash Rewards” phrase printed right on its plastic surface asking does it mean “false advertising?” He parried saying that my card is old. I told him that my card was just reissued 2 weeks ago…

Two weeks later, I’ve got a letter from US Bank notifying me that I’m in fact not eligible for the “free” premium checking account and they are going to start charging me something like $25 a month for the privilege of being their client. Boy, I was mad!

The bank offered Xenocid free premium checking which included cash back rewards for using a debit card, then told him the cash back only applies to credit card usage, then told him he doesn’t qualify for the “free” aspects of the free premium checking account. This is the point where I’d move my money to another institution.

Banks and morons, part 1: US Bank

Updated June 23, 2014 and originally published May 3, 2011.

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About the author

Luke Landes is the founder of Consumerism Commentary. He has been blogging and writing for the internet since 1995 and has been building online communities since 1991. Find out more about Luke Landes and follow him on Twitter. View all articles by .

{ 10 comments… read them below or add one }

avatar 1 Ceecee

That’s the kind of thing that gets you hoppin’ mad. I’d probably change banks, but sometimes it seems they are almost all cut from the same cloth.

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avatar 2 Anonymous

Wow, I’ve used US Bank for my primary checking account for years and haven’t had an issue like that. I signed up with a free student checking account – which I still have even though I graduated. Thankfully they haven’t tried to change my account. If they pulled something like Xenocid’s experience, I’d quickly go into a branch and give them the opportunity to set things right. If they didn’t, I would drop them as quickly as possible. Ally Bank and USAA have nice free checking.

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avatar 3 The Latter-day Saver

Just one more reason ING rocks!

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avatar 4 Anonymous

It always upsets me when someone from another country, newcomer or not,
is treated shabbily….I spit on US Bank. (And call their administrators nekulturny!)
I don’t have any trouble believing this, Chase has treated my parents like this
for quite a while. They just refuse to believe HOW badly they are being treated,
and keep hanging on…..

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avatar 5 shellye

Love the comment at the end of the first page…”banks and morons”. How appropo!

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avatar 6 Anonymous

Weak sauce. Seriously weak.

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avatar 7 skylog

the way they treated him was truly horrible. it was bad enough that he was falsely placed into an incorrect account, but when he was treated even more poorly after confronting them with sufficient evidence…that would certainly be the last straw for me.

i am very happy he/you are bringing this story some attention.

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avatar 8 tbork84

That would definitely convince me to leave that bank. Talk about poor customer service.

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avatar 9 wylerassociate

It’s terrible customer service but I don’t think US Bank is the only one that pulls off something like this.

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avatar 10 Anonymous

Thanks for all comments – the story didn’t finish there. I just published the 2nd part –

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