• Report: #358076

Complaint Review: US Bank - Omaha

  • Submitted: Fri, August 01, 2008
  • Updated: Mon, August 04, 2008

  • Reported By:Omaha Nebraska
US Bank - Omaha
132nd & Maple (branch Bank) Omaha, Nebraska U.S.A.
  • Phone: 402-963-7104
  • Web:
  • Category: Banks

US Bank - Omaha Refusal to Endorse Joint Payee Insurance Check 'Until ALL Storm damage Repairs Completed'; Mandating Service Fees and Illicit Requirements Omaha Nebraska

*Consumer Comment: I am in the same boat

*Consumer Comment: I am in the same boat

*Consumer Comment: Get it in writing.

*Consumer Suggestion: Does not seem right

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June 27th, Omaha, NE sustained substantial Storm Damages. My Insurance Company (State Farm) responded quickly & efficiently with mutually satisfactory & equitable reimbursement Check. As my house (~140,000 value) had an existing Equity Loan (~$34,000 balance), the standard Check was issued to Joint Payees.... myself and US Bank, thus requiring joint endorsement.

During that period waiting for final Re-imbursement, various repairs, cleanup, Contractor estimates, had been underway. Cashflow was from personal funds awaiting Insurance. When this check did arrive I approached the Lender (US Bank). After a frustrating 1-1/2 hrs with their associate and Corporate Office, the result was that "their Policy" was not to release Any or All of these funds until "All Repairs were Completed to their Inspectors Satisfaction"!!!

Now to complicate matters (or insult), this financial institution 'Mandated' that they would hold the check (w\ my endorsement), whereas they would create a 'Credit-Line Escrow Acct' with them being the 'Self Imposed Mgmt Oversight' and issuing agent for any and all contractor Invoiced Payments. Stipulations though, that before any Invoices shall be paid "Their 3rd party Inspector shall site review(s) for progress of completion and quality of work". Until Inspector approved - No Payments!! Once ALL designated damage repairs were confirmed then and only then would any of the Insurance Proceeds would be dispersed.

When queried about 'Credit-Line Interest', cost of their management oversight 'fees', and costs of their 'Inspector', their Corporate would not disclose or define but did imply that costs would be assessed against the held Insurance Funds. Inspector... vague, maybe $25/trip or maybe more depending on his involvement?? I may be dense but sure appears this greedy Institution is feeding off the distressed situation to 'get a piece of action'. Meanwhile only recourse is to have the home-owner front-end all costs or 'roll-over' to the banks manipulative scheme!!

In frustration, I even offered to have 100% of the Insurance proceeds be applied to the existing Note... still a NO until all repairs completed & Inspected. OK - What if I just paid off the entire loan? Still refused to endorse with the 'Logic' that the Check had been issued prior while a Mortgage/Loan existed thus still must confirm all repairs completed (to their satisfaction). This Bank 'claims' these policies are required by the Insurance Industry, due to the prior Sub-Prime situation, 'All Banks doing the same', etc., etc. but yet haven't discovered or substantiated any merit to their persistance!

Since then, I've conversed with my Insurance agent as well as a few other local Banks. None condones or familiar with these tactics. Even Institutions such as defunct Countryside Mortgage only requests that clients show 'Intent to Repair' via signed Contractor agreements, Receipts thus Incurred, etc. Likewise, I've encountered couple other homeowners relating the same 'roadblock' senario they'd had with US Bank.

Luckily, I have the financial means to pursue my repairs while just placing the Insurance Check on my back shelf (not in hands of some Bank). My concern is how many distressed families out there are being forced into unjustified addition costs and burden just because of some 'Vulture Bankers' picking the bones.

Frustrated
Omaha, Nebraska
U.S.A.

This report was posted on Ripoff Report on 08/01/2008 08:54 AM and is a permanent record located here: http://www.ripoffreport.com/r/US-Bank-Omaha/Omaha-Nebraska-68164/US-Bank-Omaha-Refusal-to-Endorse-Joint-Payee-Insurance-Check-Until-ALL-Storm-damage-Rep-358076. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

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Updates & Rebuttals

#1 Consumer Comment

I am in the same boat

AUTHOR: Patty - (U.S.A.)

I also had storm damage in the june 08 storm, and my mortgage company wouldnt sign my check either and I didnt have the money to replace my roof, and at the time I was current on my mortgage. State Farm will not move on this to help me. Now my home is to going to be sold at a Public Auction on sept 2 09 it is being sold as is. The mortgage co Midland Mortgage will not lose any money because I paid the PMI each month, I feel once it is sold the check should be mad out to me. I now have a 6300.00 check that I cant do anything with. I advise you not to sign the check and send it to the back. I also askedd the mortgage co to apply it to my back payments and they would do that. If anyone can help me please contact me
Thanks

Patty
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#2 Consumer Comment

I am in the same boat

AUTHOR: Patty - (U.S.A.)

I also had storm damage in the june 08 storm, and my mortgage company wouldnt sign my check either and I didnt have the money to replace my roof, and at the time I was current on my mortgage. State Farm will not move on this to help me. Now my home is to going to be sold at a Public Auction on sept 2 09 it is being sold as is. The mortgage co Midland Mortgage will not lose any money because I paid the PMI each month, I feel once it is sold the check should be mad out to me. I now have a 6300.00 check that I cant do anything with. I advise you not to sign the check and send it to the back. I also askedd the mortgage co to apply it to my back payments and they would do that. If anyone can help me please contact me
Thanks

Patty
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#3 Consumer Comment

Get it in writing.

AUTHOR: Nikki - (U.S.A.)

Make sure you get it in writing from US Bank that they have your insurance money or they may "lose" it.
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#4 Consumer Suggestion

Does not seem right

AUTHOR: Allie36 - (U.S.A.)

I happen to work for a mortgage servicer and I know how we handle insurance claims. If the check is less than 10k and the customer is not in arrears on their mortgage payments we have the customer include a insurance adjustors estimate, endorse the check and mail to us. Then we send out a check. If the check is over 10k we send out half the amount of the claim to the customer and contractors name. Once the work is at least 90% complete we have the work inspected and as long as it is complete we send the remainder to the customer only.
I have never heard of a bank basically holding your money hostage. I would contact an attorney for some legal advice. Especially since you are paying the repairs out of your own pocket.
Seems really fishy to me.
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