More Than 66,000 USAA Members Will Get $181 From The Bank Over Alleged Account Errors

[douglas9]

USAA will fork over more than $12 million to service members, retirees and veteran account holders as a result of a recent settlement with the Consumer Financial Protection Bureau, Military Times' Karen Jowers reported on Jan. 3.

The Consumer Financial Protection Bureau alleged that USAA "failed to properly resolve errors; failed to honor members' requests to stop preauthorized payments through Electronic Fund Transfers; and that it reopened accounts without members' authorization and without notifying them," according to Military Times.

The result of which is that the bank will pay $181.59 to each of the 66,240 USAA account holders who were "denied a reasonable investigation of the error they reported" to USAA, the Times reported.

The Consumer Financial Protection Bureau found that "on numerous occasions, USAA representatives refused to investigate errors because they concerned payday loans," according to a consent order from the settlement. USAA did not admit or deny the allegations.

Additionally, the San Antonio, Texas-based bank was slapped with a $3.5 million fine, which it will have to pay to the Consumer Financial Protection Bureau, reports American Banker.

That said, the bank has been taking steps to repay members, with a spokesman telling Military Times that "USAA has been proactively addressing these issues for more than a year and most are resolved," and that in 2017 the bank "began providing restitution payments to some affected members, and improved our procedures."

n/t

https://taskandpurpose.com/usaa-pays-users-for-errors

[The Polack MSgt]

1. I've been with USAA Insurance for over 20 years and they are a solid INSURANCE company

I used to bank with them and stopped after a few years because I preferred to use a local Credit Union.

But it seems that ever since USAA dropped its membership restrictions to the point that most Americans are eligible the company has become less responsive and kinda "loose" compared to how they operated in the 90-2000s

[MANative]

2. Agreed - I've been a member since 1991

and their insurance is fabulous. Paid over $70K to repair my flooded (finished) walkout basement without blinking. My membership came through the dependent program which was the first extension of the "officers only" policy (my dad was a Major in the USArmy). We had a banking account with them but deposits were always challenging. I keep one small checking account, just as a place to move money securely, but the apps make everything very easy now.

[marble falls]

3. We use USAA for everything, as do our in-laws, various kids and we have not a bad thing to say ...

about them.

[GP6971]

4. I've been with them

going on 45 years and I agree...I have nothing bad to say about them. The only bad thing I've heard about them is their mortgage department. 2 of my neighbors used them and had all kinds of issues.

[marble falls]

5. I'm sure it worked out in the end, GP. Happy New Year, by the way!

[GP6971]

6. Same to you!

I think this year is going to be very interest to say the least.