Occasional Contributor

I posted this as a reply to another member but thought maybe I should post it as it's own conversation too.


I've had several loans with USAA over the years and never really tried anywhere else as I had this (proven to be false) belief that they took care of veterans. I tried to refinance through USAA several times over the years at a lower rate but each time they gave me a higher rate than my original. I just blindly accepted this as it must be me and my credit. Not USAA and their loan practices.


I went to USAA for a refinance on a loan again and for the last time, I've had with them since 2015. I felt it was a little high when I got it back in 2015 but felt it was the best I could get since USAA takes care of Veterans. The apr was 8.49% at that time. Fast forward to 2018 and my refinance of the vehicle. I felt I should be able to get a lower rate since I've not missed a single payment with them on any of my loans through them and my credit was much better than in 2015. They came back with an offer to refinance at 16.14%. I was told it was computer determined and there was nothing they could do about it and that was the best rate I could get. This is when I decided to really look for a loan elsewhere. I found one at 5%. But USAA couldn't do any better than 16.14%?


I had three auto loans with USAA until a few days ago. I now have ZERO. They would not give me a rate, would not even try to match a rate by others and I felt my loyalty to them over the years meant nothing to them. They just wanted to overcharge me for my loans. Every loan I had with them was much higher than I found elsewhere. It's sad. I sincerely felt 'connected' to USAA until this. It felt like they were taking care of me when now it seemed they had been just using my veteran status and their support for veterans as a way to overcharge on loans. I am terribly disappointed in being treated in such a way for such a long time thinking all the while that they were looking out for the veteran. How many thousands of dollars in interest have I overpaid due to my loyalty to them? I had a $45,000 loan with them and still owed almost $27,000 in principal after three years. That's about $11,000 in interest in three years on ONE vehicle. I had three loans and the one I'm posting about was the one with the lowest interest rate I had through them.


I still have a single loan through them at a ridiculous interest rate of 14.19%. I will be looking to get it somewhere else too or just pay it off early. I hate to, but I feel I am being taken advantage of and basically taken as a fool. I was a fool, but not longer.


I will admit, for now, that I still have their insurance. But I'm going to look around now, where I never have before, to see if they truly are giving the Veteran the best deal. If they are I will keep them. If not I will leave. My loyalty to them does not exist anymore.


They also completely turned me down for a loan on a new vehicle. I went elsewhere and got the loan at a good rate, can't remember the rate off the top of my head, and I am driving a brand new vehicle where USAA wouldn't even give me anything. I got an almost $60,000 loan when USAA wouldn't give me a dime and took almost two weeks to turn me down. I was already driving my new ride before I even heard back from USAA.


This is, of course, my new opinion on USAA and others may have fared much better than me with them.  I'm just posting what happened to me.


@BFGILLIS, we are sadden to hear of your experience and would like the opportunity to review your situation. We never want our members to feel as if they were taken advantage of.  We will conduct a follow up with you regarding this matter.

BFGILLIS, I too am looking to move all my banking and investment business elsewhere. Rates are not and have not been competitive in really any arena that USAA offers. Their car loan rates are high, deposit rates low, loan rates average, brokerage rates are high. I had their auto insurance until this renewal, as I was able to obtain a 400 dollar savings with Geico, just throwing that out there. I am in the process now of looking up alternatives to USAA for all my services, most likely transferring everything back to Fidelity for brokerage services and may do my banking with them as well, or I am going to go with Navy Federal Credit Union or a local credit union because of the rates with USAA. I'm going to take a week or so to take in my research for better banking options and I think I'll be moving on, as good as some of the tools are, when they work, it doesn't in my mind justify taking such a hit in products, that is much more important to me than a financial score tool or investment planner that does really nothing other than direct individuals to their non-competitive mutual funds. I've given USAA just about 5 years and since nothing has changed with the rates then I can no longer stay.


Make sure you have pot of coffee and plenty of patience. You'll have to endure the gauntlet of questions and lectures about the mistakes you would be making if you closed your accounts. They'll tell you how great things are and how competitive all their products are compared to others. I know because I went through that non-sense several times when I closed my accts a few months ago. I didn't appreciate being treated as a child. That negative experience might cost USAA my homeowners/auto insurance business. 



Thanks for the information. I will look into Geico.


I fear though, that USAA will not change. Will not make their mistreatment of us right. There are so many young soldiers coming to them every day that have no clue what actually is going on that we won't be missed at all. When I got my first loan with them I felt great to be a part of a wonderful veteran based company. That feeling is gone now.


The sad part is that I still want so badly to be a part of a true veteran based business that looks out for military/veterans. I love the idea of still being a part of the military family even after I've gotten out. That's what USAA advertises. I don't feel they are living up to it though.

BFGILLIS, I felt the same way, being part of a "military only" bank that looked out for its members. What I see if non-competitive products and nothing done in regards to giving the member the best that they can. Now, I understand they are a for profit bank and I think everyone should realize that, however the insulting part is the fact that it is implied that they are competitive and if they did a simple google search, they would quickly find they are not. They won't miss us, that much you are right on. Best of luck to you my friend!

I don't remember the exact day I posted this and I got a prompt response as a reply from USAA Services. No name was left though. This is what was left for me.


@BFGILLIS, we are sadden to hear of your experience and would like the opportunity to review your situation. We never want our members to feel as if they were taken advantage of.  We will conduct a follow up with you regarding this matter.


I did get a call from a Chris on the 28th. It happened to be during a scheduled power outage at our home for Electric company maintenance on our line. The very next day I called Chris back and got voice mail. I left my info and asked him to call me back. I was interested in what they had to say to me. He never called back. I then called again and left another message to Chris. But he still never called back.


I don't know if he is very busy or if I am getting ignored. I did miss his call as explained above. But I have called back and left messages and nobody has called me back. I really want to know what USAA has to say about this matter and I plan on posting the conversation to this thread. I trusted this company because they 'took care of military and veterans'. I found out recently that their rates were outrageously higher than those that don't have businesses that promote and focus on the military and veterans. If you are going to advertise as a company for military and veterans, then don't rip them off when you give them a loan. Plain and simple. Do what you advertise. Take care of the people or change your advertising and business model. Taking care of military and veterans doesn't equal overcharging them every chance you get.

@BFGILLIS, I understand your concerns and am sorry to hear that Chris had not reached back out to you. I have forwarded your information on for further review. Once researched we will be reaching out to you. Thank you for your patience. -Colleen

I talked to Chris. He was friendly enough and basically told me they do consider years of membership and payment history. I said, I've been a member since 2005 and have never missed or been late on a payment. It sure didn't seem to matter to them. I haven't had loans with them since 2005 but have had insurance since 2005. I understand one is not the other. I have had loans with them since 2015. Several. Seven to be exact. Never missed a single payment or even a day late. But that was supposedly considered.


He told me he tried to contact me several times and this was the first time I answered. He acknowledged one voicemail I left, I left two on two different days. I then checked my phone history. I got a call on the 28th when my electric was out and one today. That equals several times trying to reach me? It turned out the phone call didn't matter anyway. They did nothing wrong and it was all my fault.


Then he told me they based my 16.14% rate on my Experian credit report. He said it was 618. Of course, I can't say it wasn't because he said the Experian credit ratings I have are wrong and if I wanted a copy I had to go through some kind of BS to get it because they don't release that information to people. They get different rates than what the consumer is shown. What kind of BS is that? Why even try to get your rate if ALL of the credit reporting places give you a fake score and only give the REAL score to your potential lender? So he told me my correct score was about 60 points lower than the one I'm shown. Yet I was able to get a 5% loan through another place. And he said they must have pulled from a different company. But my credit score between the three is almost identical. A few points separate each. But that is the score I see and not the real score anyway.


He kept trying to get me to contact a credit repair service or call Experian directly to go over my report. I told him I have my full report since I am currently enrolled in their Experian credit service. You know the one that gives FALSE data to its members. The same one USAA advertises to its members knowing it gives false data evidently.


The phone call ended with me not satisfied with the answers I got because he kept talking, while nice, in circles. Almost like he had a list of answers to be read based on what I asked. I'm sure he talks to a bunch of people a day so that could be the cause of prepared answers.


I told him I have paid them a lot of interest over the years, never missed or was late for a payment, yet none of that mattered? Yes, it matters to them so I was told. But it sure didn't matter very much based on the interest rate they offered.


My main concern now is the new military/veterans that are going to be told what a great place this is and fall into the same hole I fell into. My lowest rate loan was given to me 3 years ago. I know my credit score was much worse then than now. But they said their 16.14% was because of my score and not because they thought they could take advantage of me.


So if you read this, do not think USAA is the best or even near the best place to get a loan like I did. Look elsewhere. I can't say I was treated right. They do advertise heavily as the best place for military/veterans. I'm finding out that is just not true.


I will keep their insurance if it is cheapest. But it's not because of loyalty to them. That is gone.


No need USAA people to tell me how sorry you are I feel this way. I've looked over this discussion board and you tell everybody that yet do nothing to change your ways or offer any real solutions. I don't need another meaningless call where I'm told it's all my fault and USAA is a good business and did nothing wrong. You are just a business that has taken advantage of the military/veteran angle with your advertising to get new people coming in and not treating your loyal customers with any regard. You don't care about the 'old' guys/gals because there are 10 new people to replace us.



I appreciate you taking the time to reach out in the Community. I realize this experience has been frustrating for you. Rest assured, USAA does address and acknowledge all concerns brought to our attention on our Community Boards. For privacy reasons we cannot share the outcomes of those discussions. If you would like to discuss this matter further, please contact your point of contact. Thank you for being a valued USAA member. ~Gus