Frequent Contributor

I'm only a 10 year member.  My parent for over 50.  

I have a been slowly removing myself from USAA (such as rescheduling my income drafts to another bank, removing funds, etc...)


Here are just a couple of the reasons why:


Two years ago I was pushed off the road (crossing a bridge) by another driver and the police report clearly stated he was at fault.  When it came time to get help from USAA they were nowhere to be found.  I ended up having to total out my car and come up with the money for a new one.  Needless to say i no longer insure with USAA and found another carrier who was over $450 dollars cheaper a year with the same coverage (and better customer service).  


USAA is not just a bad choice for auto insurance.  They are horrid all the way around.  I have had an IRA with them, which turned out to be garbage.  Their financial/investment team are like a bunch of monkeys trying to f$#* a football.  


It doesn't stop there.  About a year ago i applied for a home loan.  USAA led me around by my nose for over 5 months.  I had everything set up and then a week before closing the underwriting team changed their minds.  Apparently my employer had said i was part time (which is not adequate for a home loan).  I explained that was completely inaccurate, and i furnished them (USAA underwriting) with over 24 weeks of pay stubs.  Each one of these pay stubs showed over 50 hours a week.  The employer, i explained, was saying i was part time so as to avoid certain taxes, the health care reform regs, and certain workers insurance liabilities.  USAA underwriting wanted nothing to hear of it.  They denied me my home loan 1 week prior to closing.  I had vacated my rental and was homeless for over a month with my wife and two kids. I told the loan department, underwriting, and "executive resolution" about this.  They were ALL very smug and had absolutely no interest in using their common sense to resolve the issue.  Common sense is, after all, a super power these days ESPECIALLY for these silly USAA employees.  


Thirdly, the incompetence and complacency of USAA, as well as their smug attitudes in opposition to what is financially ethical and morally right reaches over into their private loan/vehicle loan department.  I recently (about six months ago) paid off a motorcycle loan early.  The loan was for 48 months, and i paid it off in 15 months.  I was sure this would help improve my credit and standing with USAA (i was actually assured this by their financial advisor who said it would certainly improve my credit).  Apparently it didn't.  I did some research and found that sometimes you have to have the loan open even longer for it to really count. This was almost the opposite of what USAA financial guidance advised me.  So about 3 weeks ago i applied for yet another motorcycle loan, with the intention this time of having a longer revolving credit open.  Remember, my first motorcycle loan was at 10.99% APR.  This second one, even though i worked hard to pay off the first early and show good faith to the USAA credit department, was also rated at 10.99% APR.  USAA would not even budge 1%.  I found a motorcycle online and won the bid for a pretty decent deal.  I informed USAA and after a few days we had everything squared away for the completion of the purchase (i.e. the check disbursement, etc.).   This process included the representative getting authorization for higher allocated funds for more than just the ten percent of the sale price (for tax, tag, title) but also some money freed up for shipping costs.  About 15% of the purchase price was allotted because there was that much equity in the loan to value ratio.  The seller however backed out last minute from the deal and went with a higher cash bid for the bike.  I informed USAA and they said they would have to cancel the check AND the loan.  I told them that were silly (because it is) and that I didn’t want my credit to keep taking hits for the same loan (as I am also aware now that this hurts credit scores).  The response was verbatim:  “oh well, that’s what we’ll have to do, you really don’t have a choice if you want the loan.”  I thought this was outrageous but I thought to myself, oh well It can’t hurt that much.  WELL IT DID.  After that loan was canceled the new loan applied for came back with a higher rate of 13.99%.  That’s a whole 3% which translates to over $1500 more in interest for the life of the loan.  I complained about this to their “executive resolution” department.  Once again (like during my USAA mortgage loan adventure) the person(s) where very smug and seemingly joyful in telling me “that’s just the way it is” without any proper explanation as to why underwriting was blind to the facts.  Namely the facts that the week old loan that was canceled at 10.99% should have been considered in the new loans interest rate AND that ding to my credit, which was responsible for a fluctuation in my credit by a few points (IF ANY AT ALL) was obviously due to the new loan application’s credit check. Furthermore, now they were denying me further allocation of funds [even though this value/loan ratio was even higher (value was twice the loan amount)] for things like the shipping of this particular bike.  Again: no explanation just smugness from USAA.  I would not recommend USAA to anyone for banking, insurance, vehicle loans, home loans, or investments.  The trouble it takes to become a member just isn’t worth the experience and subpar customer service.   Maybe it’s just me though.  I’ve only been a member for a little over a decade.  I am reading, however, more and more bad reviews every day, and utilizing this time to find other alternatives (like the vehicle insurance).



Dear mjasonhayes,

You and your family's membership is important to us and we are very sorry to hear of the disappointments you have encountered. We would like to get in touch and get further details and feedback. A member service representative will be reaching out soon. Thank you for posting.

Oh, really?!  Thanks so much for posting something here to give the open appearance that USAA cares!  




BrianaHartzellUSAA:     We all know by now that you have been hired to try to save face for USAA in the eyes of social media.  It's an actual job (i should know i work in IT).


I can really skip the other person you'll pay to contact me and tell me "just how truly sorry" they are (without knowing me or my family), as i continue to brood over how dissapointed i am in this company that once stood for the best option for service member like myself, my father, and his father before him.   


You have sold out and a little fancy footwork on an SM platform is not going to convince many others than the newbs you're reeling in.


Thanks for everything,


j. hayes

I'm somewhat perplexed by this recent spate of poor reviews of USAA. Sure, they have their flaws; no one (or company) is perfect, but many of these comments make little sense. This one is a good example.


It is not my intent to 'pick on' this individual, only to offer some observations.


1) "USAA...were nowhere to be found.  I ended up having to total out my car and come up with the money for a new one."


Who was it that offered the payout for totaling your vehicle, the other insurance company? If so, that is exactly what should have happened. If the other driver was found liable for the damage, why should USAA have to pay anything?


2) "USAA led me around by my nose for over 5 months.  I had everything set up and then a week before closing the underwriting team changed their minds."


A mortage application has a viability period of only sixty days. If it is not finalized and closing scheduled by that time, the application expires and one must begin again. I know this, because I applied for a mortgae refinance on 03 November and, due to some circumstances beyond my control, was unable to satisfy the requirements of the underwriter by the application expiration date of 05 January and had to start over from scratch. How is it that this mortage application was dragged out for over five months? That doesn't make sense.


3) "The seller however backed out last minute from the deal and went with a higher cash bid for the bike.  I informed USAA and they said they would have to cancel the check AND the loan. "


That's standard practice for *any* lender. If the purchase falls through, you will need to begin the loan from scratch; it is not left 'open' indefinitely for the borrower to find another vehicle. In almost all cases, the lender is going to cut a check in the name the seller (or their lender, if it is a entails a loan payoff). The check is not going to be cut for the borrower; that just opens a whole can of worms for fraud. Not to mention the fact that the borrower would be responsible for making payments on the loan within forty-five days, even if they have not found a new vehicle to purchase.


Good Luck finding a new financial institution that is going to do business on only your terms.

Well let's pull this "reply" from velociped apart and see if we can make some sense of it, shall we?  :


The first note was that USAA, although they were supposed to be covering me for that kind of incident said that we were fifty/fifty at fault.  So yes i had to total my vehicle with the other insurance company.  All in all the other insurance company    helped me more than my own.  Just humoring you with a little extra info there.


Your experience and my experience with mortgage loans is ab-so-lute-ly unimportant and unless you are a mortgage specialist of some sort i disregard your albeit robust, presumptuous statement as to the ins and outs of immobilien.  What i posted happened, it's that simple buddy.


And lastly, for those of you who weren't paying attention (present company included), i never said that terminating the original loan and reapplying for a new one wasn't standard procedure,  i believe my exact words were:


"I told them that were silly (because it is) and that I didn’t want my credit to keep taking hits for the same loan (as I am also aware now that this hurts credit scores)."


This statement friend, has multiple parts consisting of first a personal and common-sensical opinion, followed by the declaration of a preference, and ended with a statement of fact.  (much unlike what you have written here for your response.)


Thanks anyway for the time you have wasted with your response.  I will never get these three and a half minutes of my life back .  


Good luck feeling you can voice your disgust but no one else can. 

 mjasonhayes, Wow, could anyone have worst luck!  


I think the best thing for you to do is to run, not walk, to another institution.  Definitely better for USAA!



Is that your whole input?  In its entirety?  Complete and unabridged?


Well i must say, i had expected a little more from you.  Maybe one of your many pro USAA replies that have found themselves in some of the most innapropriate places throughout the forum?  Or even just some more vomit of facts, that are not so subtle attempts to disparage further negative comments from other members (who by the way have been members longer than you've been


Oh tsk, tsk.


Well you know what i think of you from my reponses to your responses in other posts.


Thanks for the input. <insert some other wise words here>....



Yep, that is all you deserve.  You post speaks volumes just fine by themselves.

Hey Jason I feel the same way, USAA is all fluff.

Hi mjasonhayes,


I'm really sorry to hear that this has been your experience with USAA.  As a counterpoint, I'll say that mine has been brilliant.


I got rear-ended not once but twice at the same intersection (I don't drive through there anymore).  The second time was by a bunch of kids in Daddy's car.  Daddy knew my parents (my dad was in the car with me, even) and he didn't jive around -- he called his insurance company and told them to pay it.  He never apologized, but at least the money was easy.


The first time was a little harder; the guy gave me his info and then I never heard from him again.  I chased him for a while and never got a response.  Finally I called USAA and asked if they would deal with it.  They said they would, and were upfront about the fact that there would be a charge for that, which they would try to recover from the other driver's insurance but they might not be able to.  I said "sure, do it."  I didn't have to think about it again; a day or two later they called me back and said "we got the fee from them, we got the money, and here's a repair shop a mile from your house where you can go and they will repair it on us and give you a loaner car while they do."  It was brilliant.


My rates weren't affected by either accident.


Another time I took my car through a carwash and the windshield cracked.  I called USAA and they said "no problem."  An hour later a guy showed up at my house, replaced the windshield, told me "try not to drive it for 24 hours while the glue dries but you're all set.  No charge."  Again, my rates weren't affected.


When my wife and I got our mortgage we called USAA.  They were upfront about the fact that they didn't do mortgages themselves, they outsourced them to a variety of companies that they recommended.  They gave us several options, we chose one, and the process was a breeze.


As to customer service, I've never waited on the phone with them more than 80 seconds, and every person I've talked to has been polite, efficient, and solved my problem within minutes. 


USAA was the first bank I ever knew to have mobile deposit, which I thought was absolutely brilliant.


I only have two complaints about USAA: (1) I can only reach them 9-5 on weekdays, which can sometimes be inconvenient but has never been a problem, and (2) when I set up travel advisories I have to do it for each country/card combination instead of just being able to say "I'll be in these countries on these dates, apply that to both my CC and my debit."  These are pretty minor issues.


I recommend USAA to all my friends and when someone else suggests that I change banks my response generally involves the phrase "cold, dead hands".


Again, I'm sorry to hear that you've had such bad experiences.  Whatever institution you go to next, I hope you're happier with them.


Dave Storrs