A warning for other members - Start looking for alternatives

Highlighted
Contributor

Hello to all,

 

I just want to very quickly share my experience so that perhaps this miserable episode USAA has put me through will -at least- serve as a warning for others.

 

I have been a member for 25 years. I do everything with USAA. Checking, credit cards, auto loan, auto insurance, home insurace, prepaid cards for my teenagers. Everything. I did not work with any other financial institutions.

 

During the last month I had been interacting with USAA's website quite a bit. I had to deal with a car insurace claim, I paid off the entire balance on a credit card that I had been carrying for a long time, and was making sure that no new charges appeared on it.

 

I noticed that my five checking accounts (Main checking plus two checking and two spending for my kids) were not showing. I thought it was a glitch and moved on.

 

However, when I noticed the accounts continued to not appear, I called. I was then informed that I was no longer a bank customer, and that USAA had canceled all my accounts. The first representative could not tell me why or inform me further (it was labor day Monday) and assured me a manager would call me the next day.

 

Nobody called Tuesday. Nobody called Wednesday. On Thursday (mind you, this was my ONLY bank account, and at this point I do not have acccess to my money) I called and insisted the matter was escalated. I was transfered to a manager and the call went straight to his voice mail. Left message, explained the situation, and -of course- received no call back.

 

On Friday, I asked for a day off from work so that I could dedicate it entirely to USAA, because I had the sinking feeling this was going to be a long miserable nightmare, and indeed it was.

 

I spoke to no less than seven representatives. They claimed that an email was sent a month and a half ago asking for an update on my physical address, and that upon not receiving an update, they simply proceeded to close all my accounts.  We checked, there was no such email, but sure enough this can be fixed. After all, I have been a loyal member for decades.

 

I explained that if there is a piece of information of such capital importance that can cause an active account with 25 years of history to be closed, this sure would warrant a call, a letter, or a verbal exchange of any sort. Keep in mind that I had been actively contacting USAA that entire prior month for other banking and insurance reasons, and nobody said anything like "Oh, wait, we see here there is a flag here on your account".

 

Well, nothing, nothing, nothing matters to USAA. They said the rule they go by is that one email is enough, that their system shows it was sent, and that all the accounts are closed. They said they wrote a check and and send it to the address of on file, which could be right or could be wrong, and that they had no way of knowing because the account was closed anyway. So, so long, good-bye, farewell, don't let the door hit you on the way out.

 

Then, while I was talking to them going back and forth I noticed that my autoinsurance (which is still active, they didn't cancel that) had been automatically paid off just the day before, from an account that supposedly is already closed. I asked how can that be? "we do not know". Well? Will the payment bounce and generate a fee of some sort? "we do not know".

 

At this point I had been on the phone for about three hours, and I was tired of being mad. I asked them to help me open a new account (since the old one was gone forever) and try to just wrap up the week. They asked me to place a deposit on the new accounts and I tried to use my USAA card. You know, the one that I had just paid off a month ago after years of carrying a balance. The one that had a 21K limit on it.

 

"Oh, I am sorry ma'am. It appears that credit card has also been canceled"

 

Why? "I do not know", well, can I get it reinstated? "I do not know". How do I fix this? "I do not know". Can I just get a new one? "You will just have to apply for a new one", but that generates a hard hit on my credit "I am terribly sorry, I know how bad you must feel". I just wanted to gouge my eyes out. Empathetic listening is the worst thing you can do to someone that has been trained on it, because we know how hollow and insincere those words are when you do not mean them.

 

At this point there are several things that have become clear to me.

 

- USAA does not value its members

I have been a member for 25 years. I have given them my entire financial life and used every single one of their products, but they could not be bothered with a phone call. They know a lot of their members live overseas and after I perused the boards I see that they have done this to other people as well that were left in far worse situations than me.

 

- USAA is just another big bank

A huge veil has been lifted from my eyes. For years I evagelized about how great USAA was, and I feel so bad for the people that may have joined because of me. The practices in which they engage show that we are nothing but numbers to them. USAA has chosen not to be BBB accredited, and if you check out their website you see why, they have over 1,400 complaints logged. I wonder what the rating would be if they chose to join the program.

 

- There are other options out there

Once you mentally accept that you are a number to them, you realize the only thing you can do is take your business elsewhere. There are better banks, better insurance companies, and better organizations that are trying to make customer service a feature of their company.

 

I am so sad and upset about this situation. I felt that USAA had my back when it came to our checking, savings, home insurance, auto insurance, and financial growth products. It is a complete dissapointment to realize the kind of ugly institution this organization has become, but I am glad I found out like this instead of through a serious home or auto insurance claim, like so many other people in these forums, in Reddit, and in the BBB seem to indicate.

 

Do yourself a favor and look for alternatives. This is not the USAA we grew up with.

16 REPLIES

Highlighted

Dear @25yearsamember,

 

We greatly appreciate you taking a time to share your experience. I am very sorry to hear about your accounts. We will look into this further and log your feedback. - Jesse 

Highlighted

wow a nightmare. I am wary of all big banks and only belong here becuase of husband. But something similar happened to me last year. Thye canceled my home insurance! They cancelled without a written notice. I was just so thankful that nothing happened during that 'pause'. 

Highlighted

Luckily I have already started opening up an account at another institution.  What has happened to USAA?  It's sad.  They can't seem to do anything right.  And they don't know what's going wrong. I won't go into all my gory details, but I do appreciate the original poster's advice.  Please heed it before the walls start collapsing on you too.  So sad.  It was a good run.

Highlighted

We have been members for over 50 years.  We have two small checking accounts with USAA, our home insurance, and car insurance.  I had a fairly large home owners claim a few years ago and although it was finally settled to my satisfaction, it was a long trip.  I had to deal with multiple people, with my claim being stransferred from one agent to another w/o notifying me.  I could never call and get an agent, I had to wait until someone called me back.    It was like a parttime job for me while dealing with it.  I really feel sympathy for the original poster--how scary not to be able to get to your money and not being able to get anyone to fix it.

Highlighted

What an experience! I'm a 36 year member and this would have been inconceivable just a few years ago. I'd like to blame the new CEO, Wayne Peacock, for all the deterioration of USAA, but it's started before him, he merely oversaw the final excision of Honor and Integrity from values of USAA (he's into political activism and "social justice" wokeness, and it seems USAA is  his personal forum used to assuage his guilt over his privilege).

 

Any, as of two days ago we no longer have any insurance through USAA, and the majority of our funds have been moved to other banks.

 

A side note to Jeff in the CEO's office- it's been 6 or 7 weeks since you said you'd check into the situation and call me right back- should I still be waiting?

Highlighted

People, make sure you submit your votes when Board elections come up.  I have always reviewed the bio's and voted for conservative values.  But hopefully the bio's are not full of lies.  I'm pretty sure I did not vote for Wayne Peacock.

Highlighted
Hello,

Thanks for sharing this. I too am a longtime member joined while in the USMC. I recently used the USAA Car buying process and they immediately dropped my credit card limit by thousands. This jacked my utilization up and dramatically lowered my credit score. USAA is arbitrarily lowering credit limits for increases which were recently approved and in effect impacting credit scores negatively and widely. I called regarding and they said I would need to request another increase, and take another hard inquiry hit on my credit score. They don't care about your credit health and are actively taking steps to reduce members scores. It must be so they can charge higher interest rates on future loans. All I can say is balance transfer anything you owe them to another bank to minimize the interest they get from you. Im telling all the veterans I know to move away from them before they lower your Credit score without any cares. Thanks.
Highlighted
Pulled all my finances out of USAA back in mid-late 2017. Even closed a couple of credit cards that I had with them for over 30yrs, because what they did on my credit. Initiated a change without telling me. Equifax was on top of it and notified me. USAA played dumb even after I went through the paper process to have them investigate it. Better returns, protection and service at my credit union and Vanguard for me and my family. 😊

USAA CSR: No need to up channel.
Highlighted

I agree with you! I am looking for alternatives for my automobile and homeowners insurance. I moved my checking and savings away a few years ago after they gave away all of the money in my checking account. While they reimbursed me, I went after the criminal. I (with the help of a local Maryland police force) caught the criminal (when they signed for the FEDEX check made out to me).  USAA refused to press charges. Thye also refused to tell me how this happened. I lost confidence intheir ability to safeguard my funds. I have been a member for 39 years! I had an accident in April. While I was at fault, there were no points accessed on my license and the ticket was dismissed. My insurance was doubled at renewal. When I called to ask what could be done, the answer was "Nothing". They had to go by what the underwriters decided, or at least that's what I told. I was told that every other insurance would also see the accident (which I had no problem owning) and my rates would be similar. They lied. Not only are my rates closer to my present pre-accident USAA rates, but when I bundle my homeowners insurance, I will save at least $500 a year! This is with more than one insurer. Once upon a time, we were valued "members" with USAA. Now, I'm not sure if we're even valued "customers". We are a source of income. When we cease to be that...it will cost. I would literally have paid more for my accident by staying with USAA for 3 years than they paid out. THIRTY NINE YEARS FOLKS...go shop around. USAA is hype. They are living off their prior reputations.