Help! US Bank "verifying existing account information"

[Anonymous]

Very strange situation with US Bank. 

I applied last week for the US Bank Cash+ card and was approved roughly 24 hours later (1000 CL). I received my card yesterday but also received another envelope with the attached letter:

"Dear XXXXXX

We have reviewed your US Bank Visa account and are unable to verify existing account information on file. Therefore, the use of the above referenced card has been restricted effective May 13, 2019. This process if designed to ensure we protect your identity and credit. 

If you wish to lift the restriction from this card, please send copies of the following documents within 15 business days of the date on this letter: 

NEED ALL THE FOLLOWING BY END OF DAY 6/4/19 FOR ALL CARDHOLDERS: DRIVERS LICENSE, SOCIAL SECURITY CARD, COMPLETED SSA VERIFY FORM, LAST 2 YEARS FEDERAL INCOME TAX STATEMENTS, COMPLETED FORM 4506-T, RECENT PAYSTUB, LEASE OR MORTGAGE STATEMENT 

If we do not receive a response from you within 15 business days, we will be unable to lift the restriction on this account. You will continue to receive regular monthly statements for any remaining balance on this account."

Anyone know what is up here? I know this is sometimes done if you're a risk to max out your card and run, but for a card I literally haven't even activated yet with a $1000 limit?  

I spoke with someone from credit card services for about 5 minutes and was forwarded to an incredibly rude "investigator" who told me they randomly flag accounts for this (which is obviously not true?). 

Regardless, this is an incredibly frustrating situation. Has anyone had this happen to them, or have any insights?

[Anonymous]

Sorry this has occurred to you.  Its possible that they randomly flag applicants for investigation but I have some history with US Bank, both on the banking and credit sides, and I've never heard of such an onerous request.  

Have you checked your credit reports recently to see if you're a possible victim of identity theft?  Have you placed fraud alerts on any of your credit reports?

[Anonymous]

Nope--I check my credit score regularly (most recently yesterday). And it seems to me like if there were concerns they would have addressed them before they let me open an account?

[Remedios]

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@Anonymous wrote:

Nope--I check my credit score regularly (most recently yesterday). And it seems to me like if there were concerns they would have addressed them before they let me open an account?

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Looks like it went through secondary review. The only way to keep the card is to provide them with the documents they are requesting. 

[Anonymous]

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@Anonymous wrote:

Nope--I check my credit score regularly (most recently yesterday). And it seems to me like if there were concerns they would have addressed them before they let me open an account?

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I wasn't referring to your "credit score"...I'm talking about your credit reports from the 3 major credit reporting agencies that you can get at annualcreditreport.com.  You need to examine them carefully to determine that they aren't compromised and that no one attempted to open credit accounts in your name.

[Anonymous]

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@Remedios wrote:

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@Anonymous wrote:

Nope--I check my credit score regularly (most recently yesterday). And it seems to me like if there were concerns they would have addressed them before they let me open an account?

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Looks like it went through secondary review. The only way to keep the card is to provide them with the documents they are requesting. 

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True, but that request seems quite broad to me.  Even Amex only asks for the Form 4605-T; and some banks might ask for copies of driver's license and social security card.

[Remedios]

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@Anonymous wrote:

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@Remedios wrote:

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@Anonymous wrote:

Nope--I check my credit score regularly (most recently yesterday). And it seems to me like if there were concerns they would have addressed them before they let me open an account?

---

Looks like it went through secondary review. The only way to keep the card is to provide them with the documents they are requesting. 

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True, but that request seems quite broad to me.  Even Amex only asks for the Form 4605-T; and some banks might ask for copies of driver's license and social security card.

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Could be income discrepancy or issues on banking end elsewhere. During my app when I played 100 questions, UW had access to Sage Stream and EWS reports. OP's account got flagged for whatever reason, but decent chunk of documents requested pertains to income so, who knows  🤷

[Anonymous]

Seems a bit over the top for a $1000 risk to me. Might be best to just move on to another lender OP, that’s a lot of hassle. 

[bourgogne]

and people complain about chase lol.  this is a stupid amount of hoops to jump through for any credit card.  move on imo.  tax returns lol, what a joke.  employment and banking verification I can see to some extent in the future, that is how the rest of the world deals with credit but its not where the usa is @ yet.  us bank is the penfed of the banking world

[AverageJoesCredit]

No, thats a crazy amount of hoops for a 1k credit card. Would be nice to know what caused it but i would just move on. So many more lenders our there. I recently tried for a USBank checking to help get a card but something didnt match or verify and they declined so i said cool, looks like ill never have a US Bsnk product snd thats fine. I have enough lenders and at the end of the day , any credit card swipes as well as any fancy credit card

Ps, lol at US Bank being the Penfed of big banks haha ,so true