Bank Ignores Bankruptcy Judge; Fails to Appear at Contempt Hearing

An Oregon consumer has asked a federal judge to hold one of the country’s largest banks in contempt of court. For a second time.

According to court documents filed by the consumer’s attorney, U.S. Bank N.A. violated the bankruptcy discharge last February by seizing wages from a checking account without notice.

After the bank refused to return the wages, a Eugene bankruptcy judge ordered it to appear and explain why it shouldn’t be held in contempt of court.

When the contempt hearing was called on May 8, only the judge and the consumer’s attorney were present.

For reasons unknown, the bank failed to appear.

U.S. Bank N.A. now faces another motion seeking a second contempt order, this time based on its failure to timely turn over documents in the case.

A motion filed by the consumer’s attorney on May 12 indicates the bank has received over a dozen notices of the contempt matter; several by certified mail.

In April, Wells Fargo Bank, N.A. settled similar charges that it had illegally seized $197 from one of its customer’s accounts during bankruptcy. The bank paid the customer $35,000 to settle without having to admit liability.

U.S. Bank N.A. is the deposit-products arm of U.S. Bancorp, the country’s fifth largest bank by assets.

[Case Number 13-62766-tmr7, Eugene, Oregon Bankruptcy Court]

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