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$27.67 -0.43 (-1.53%)
7/3/2008 1:01 PM

US Bancorp (USB)

CAPS Rating:
****

The Company provides financial services including lending & depository services, also engages in credit card, merchant, ATM processing, mortgage banking, insurance, trust & investment management, brokerage, & leasing activities in domestic markets.

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Avatar anticipator (< 20) Submitted: 10/28/07 1:24 AM : Underperform Start Price: $31.28 USB Score: -6.40

Not A buy? Here is why!





This is the first Bank I've delt with that I feel has deceptive practices. Having close to the top 5% in credit score. I purchased a vehicle and received a loan. Within the first few payments I realized there are some issues with this company. Trying to pay down this loan I added extra payments. They charge you interest not yet due first before you can pay down your loan. Even with 100% monthly payments paid in full.


Here's how it works.


If you pay more than what you owe on a loan. They apply it towards your next payment even if you state on your check please apply towards principal. This in turn does not pay down your loan but takes the interest off of your next payment. Which lowers your next payment but does not pay off your principal adding interest. You have to physically pay another address to pay principal adding to postage. They dont tell you unless you wreak havoc on customer service. Which we don't want to go there.


Prove me wrong and call 681-466-3000


Ask for the Executive Vickki





These are just my opinions.


It just seems like a shady company.


Now I know why people are losing faith in the US financials.





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Avatar Bankboyftc (98.69) Submitted: 1/04/08 12:27 PM

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So your opinion of how the stock will do is based on a bad experience with the company? Good investment strategy... Every company has their quirks. A different way of applying a loan payment does not make US Bank a shady company. Usually, picking stocks has to do with the future outlook of the company, not necessarily how they do business. There are plenty of successful companies out there that take it on the chin when it comes to dealing with public opinion. Microsoft? Wal-Mart? Those are just two.


I'll stick with my outperform. Long-term anyway. Right now, every financial is getting whacked. US Bank has managed to stay away from getting too deep into the subprime arena. A good portion of their revenue is fee-based, so that allows them to reduce their interest rate risk. They'll come back, it's just going to be a matter of time.

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Avatar icesyckel (36.35) Submitted: 1/11/08 9:14 AM

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I disagree. Customer service is 1 of the biggest issues people consider when choosing a bank, moreso than with WalMart where people care mostly for low prices. If US Bank has offended this user and lost a customer, then I doubt the experience was unique. The question becomes how common this experience is. If many people have these problem with "Vikki" and her ilk, then US Bank will have a rocky future in what is sure to be a high-competition future for the sector. In a time when banks are going bankrupt, those banks hoping to survive had better ensure customer loyalty - something Vikki failed to do with this customer.

I invested in BAC largely because I trust others have had the same great customer experience that I have had. This may or may not be the case, but it's just one factor in my analysis of the stock. Like you, I look at the long-term potential, and I believe that customer service is one of many important considerations.

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Avatar haiku888 (85.06) Submitted: 1/30/08 6:27 PM

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I agree to some extent with icesyckel and anticipator. Peter Lynch stated that one should buy what they know. The converse is correct as well, not buying what you know as well. Ultimately until the overall banking sector rises say from 27.50 to 33.00 (XLF) Im bearish with all the uncertainty about the market.

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Avatar cubanstockpicker (75.85) Submitted: 3/01/08 7:38 PM

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Car financing is different in some cases. Sometimes the DEALER is the one that sticks it to you to get an extra commission. There are different loan types and you must have one with a fixed expected interest payment and unamortized. Go back to your dealer and ask them to rework that loan. That will be kind of tough, but if you are planning on making extra payments, which very few people ever do, then you should have gotten one with an amortization and an early payoff.
Us bancorp is a well run company, but I will wait before I pick them.

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Avatar Retirnsoon (35.38) Submitted: 6/26/08 12:19 PM

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There are always two sides to the story. In my years I have found situations such as these have many underlying layers not brought to the surface. If you had a bad experience, fine. Warren Buffet loves it, keep buying.

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