US Bank and Insurance Claims Issues

Woman on phone looking at papers

US Bank has been the target of many consumer complaints and lawsuits (see these high-profile cases in 2013, 2014, and 2015). For this reason, it's not entirely surprising that US Bank has garnered severe complaints about its insurance claims services.

Mishandling of Insurance Claims

US Bank has had a history of questionable practices and negligence with their handling of insurance claims. The following problems have been the most common issues noted in public complaint forums.

Failure to Disburse Insurance Claim Funds

In this scenario, a person files an insurance claim, has the money approved quickly by the insurance agency, but US Bank steps in and retains the money, which prevents the consumer from paying the contractor for work. In some cases, the person is forced to sue US Bank to get the funds. The following real-life examples represent a common pattern:

  • October 2017: A person on Complaints Board experienced flood damage. They received funds quickly from their insurance company to begin rebuilding the house. US Bank got involved and retained the person's insurance money needed to pay the contractors, which caused severe problems for the person and their family while they were trying to rebuild the house.
  • March 2018: A consumer complained about US Bank when their house suffered hail damage. Their insurance company and contractor responded quickly and professionally, but US Bank did not. Like the previous complaint, US Bank would not disburse the funds needed to the contractor. The person made almost 30 phone calls with their contractor present trying to get US Bank to comply, but they could not.
  • October 2018: A person's house was destroyed in a fire. According to the consumer in this Rip Off Report complaint, US Bank retained the check from the insurance company and would not disburse it. The customer resorted to hiring a lawyer and suing US Bank, who then tried to settle with the person.

Mishandling of Paperwork

The mismanagement of paperwork was another common problem with US Bank found on consumer complaints boards. In many cases, the bank would simply fail to send important documents or paper checks in the mail on time. This mismanagement of the process often led to money not being paid in a timely manner for contractor work. Examples include:

  • June 2012: A consumer in Alabama reported that US Bank had mishandled the paperwork process for their claim, which prevented the payment from going through to the contractor.
  • April 2018: In a Consumer Affairs complaint, US Bank did not have a homeowner's insurance payment sent in a timely manner to the insurance carrier. More than 40 days passed and a payment had still not been sent. While the customer complained continuously about the late payment, US Bank sent a letter demanding the customer obtain insurance or they would go and find insurance for the customer.

Charging Accounts Incorrectly

Other common complaints have included the mishandling of account charges. In some cases US Bank would double-charge a customer for insurance or charge the incorrect amount. For example:

  • August 2017: Pissed Consumer reported an incident in which US Bank double-charged mortgage insurance to the customer, then held the customer's payments in the escrow account with no explanation or reason. The customer was forced to get a lawyer to address the situation.
  • October 2004: Rip Off Report details an incident in which US Bank charged the wrong homeowner's insurance amounts, which caused serious problems with escrow.

Negligence and Poor Follow-Up

Many consumers have also complained about negligence and poor follow-up. US Bank would require a complicated series of steps before consumers could access funds, then neglect to do their part or mishandle the process with poor customer service. Instances include:

  • January 2016: In this court case, US Bank failed to satisfy its own requirements in verifying contractor work, then overpaid the contractor, which caused serious problems for the consumer.
  • November 2014: In this consumer complaint that made the news, a person who had flood damage to their home was unable to get their money from US Bank because of paperwork handled in a negligent way and poor customer service.
  • November 2017: In this customer complaint, US Bank employees treated a consumer very poorly when she tried to get a claim processed for a car that was lost in Hurricane Harvey. The customer stated that US Bank employees were so rude and unhelpful it made it extremely difficult to process the claim.

An Enduring (But Bad) Reputation

The complaints against US Bank span many years, yet they share similar patterns. US Bank's insurance services seem to be filled with troubling problems. If you're wondering which company to use for mortgages or insurance services, you might want to think twice before going with US Bank.

US Bank and Insurance Claims Issues