USAA wont Release Holds on Checks that cleared other Financial Institutions

MimiNTx
Contributor

I am absolutely disgusted with USAA.

 

I have a hold on 2 checks that were deposited on the 09/05/15 and 09/06/15 respectively.

I have called the Executive Resolution Team twice with NO resolution.

 

Both checks have cleared the other financial institutions and I can provide proof of that.  USAA will not release the holds on funds they already have in their possession.

 

They keep asking me WHY I need the funds.... its my money and none of their business.

 

What do I need to do?  Do I email Stuart Parker, Laura Bishop, Jamie Warden & Carl Liebert?

 

Veronica and Yolanda in the Executive Resolution Team will not assist in the release and I know for a fact that holds can be released early as I have worked for a bank for 7 years.

 

MimiNTx

17 REPLIES

Correction:  Jamie Warder

 

 

So I emailed Stuart Parker, CEO; Laura Bishop, EVP & CFO; Jamie Warder, President of USAA FSB, Carl Liebert, EVP & COO; and also ethics@usaa.com.

 

I emailed them the detail of my conversations with the Executive Resolution Team and also the copies of the cleared checks from the 2 other financial institutions.  The checks cleared on 09/09/15 but USAA Executive Resolution Team is refusing to release the checks until 09/15/15 even though I offered to supply the canceled checks.

 

One of these checks is even my payroll check that I deposit every other week.

 

Disappointed that I had to resort to this action.

 

MimiNTx

Dear MimiNTx,

Thank you for taking the time to comment.

 

Our bank partners confirmed USAA will place a hold for a maximum of 7 business days. Keep in mind, business days will exclude weekends and holidays. Funds will remain on hold during the entire timeframe. The holds placed are there to protect our members and USAA Bank.

 

As an alternative, if you are depositing a payroll check USAA accepts direct deposit from your payroll provider at no cost and this type of deposit is not subject to holds. If you have additional questions about your deposit options, please email us at contact us at 1800-531-USAA (8722) or socialmedia@usaa.com. Thank you again for posting in the community.

 

Wow that is amazing, they won't release the funds that I used cash to purchase a money order so I could deposit at the UPS Store. I have never had this problem before with them. I wonder if they had some trouble with an FDIC inspection, or are holding members funds longer to justify questionable loaning practices because they are operating like an institutiom that is in trouble.
1990 called and would like their checks back. 10 day check holds are 100% legal, you can complain to whomever you want to but nothing is going to happen. If you are that upset with the financial policies set forth by the NACHA, SEC, FBI, CFR and others then I highly suggest moving to a more secure method of moving money, like wire, ACH transfer, paypall or direct deposit. If your employer is refusing to set up free direct deposit for their employees from any of the dozen available on the market or outsourcing to a payroll company, then I would find a new employer that isn't stupid. Continuing to use checks, then getting upset at your local bank for Federal regulations is a bit pointless.
Mimi is confused about check clearance.

With Deposit @ Mobile there are security concerns that often necessitate long holds. It's in the T&C you never read.
Ok seriously if those checks have cleared the other bank they should be released immediately. It is no secret that banks make their money off the interest they earn from the money deposited at the bank which is fine when we don't need it. The bank has a fiduciary responsibility not to take advantage of holds to gain more days of interest. Granted bank customers with high credit scores, credit cards securing their account, etc can use the picture taking feature on their phones to get more immediate access to funds. But it still does not give the bank the right to hold funds after they have been received. Suggesting that a customer get another account at a local bank or use a third party service to wire transfer is ridiculous. I have heard the USAA doesn't charge for incoming wire transfers argument, but no one does. Everyone charges to send them including USAA. If you are going to be a National Bank with limited branches then you have to be able to accomodate your customers in a fair and equitable manner. To me, holding this person's funds after they are cleared is what got banks in trouble with predatory lending. You are taking advantage and profiting by extra days of interest from less than perfect credit clients, and it will catch up with you eventually.

BCC, you are confused.  Your interest rate theory is absurd.  The Fed rates that USAA would earn from a passive deposit are so absurdly low that they'd be lucky to earn $10 per million.  

 

You on also fail to understand mobile deposits and check clearing.  There are massive security concerns with mobile deposits.  Any two-bit, trigger-pumping moron with an Atari 64 and printer can make a check and slap on any account number they've easily gleaned from one of your checks.  Routing numbers are public record.  

 

The he crook can use mobile deposit to deposit this fake check and drain your account.  Many people wouldn't even know the money was missing until they balanced their statements -- if even then -- every month.  But, the check would "clear" in just two days.  What good does that do USAA if a month later they suffer the loss because you spent the money and can't pay USAA back?  With your average daily balance of $6.47, what hopes do they have of offset?

 

7 days is reasonable when the person is not credit qualified or doesn't have a very deep and robust banking relationship with USAA.   In fact, USAA is in many ways better than the competition.  Although, for example, Chase or B of A make funds available quicker, they have monthly -- yes, monthly -- deposit caps of about $2,500.  USAA will often allow $5k per day.  Count your blessings. 

Fullbird they should put you on payroll . As a cancer survivor and healthcare professional, I do count my blessings, but it has very little ro do with money.