I'm following up on my post titled, "USAA Allowed Unauthorized Person to be an Account Holder; Worse, USAA Took Several Thousand Dollars ..." made on Aug. 10, 2019. USAA's "CEO's Office" failed to accomplish anything tangible over the 19 days since making that post and so far USAA is acting without any sense of urgency. In fact, it doesn't appear USAA is taking any action at all.
I received a call from Erica of USAA's fraud department on Aug. 16, 2019, and she left a message stating she's looking at account activity since January. I can only assume she's looking into how an unauthorized person became a account holder since that's when the fraud in our accounts began. I can't help but wonder why she is doing this without first removing the unauthorized person from the account.
More importantly, neither Erica nor anyone else provided me with any indication the issue of USAA taking thousands of dollars from an account - without sufficient legal cause or notice - is being addressed. As previously mentioned, USAA is in violation of 12 CFR Part 1005.6(b)-2 by wrongly holding us responsible for more than the amount allowed under Regulation E. I'd expect USAA receiving notice the organization is violating the law to attract more attention and action on management's part.
It's starting to appear USAA is acting in bad faith by failing to properly acknowledge my complaint and complete an investigation of this matter on a timely basis. The law is clear on the issue of banks wrongly holding customers accountable for forged checks. Under Uniform Commercial Code § 4-401(b), banks are liable for the amount of the overdraft when the customer didn’t endorse the check (the signature is a forgery). Has anyone compared the check endorsement with a signature card or previously endorsed checks? If not, why?
USAA has a duty to protect members from detectable and preventable fraud. However, USAA failed to do so in this case and is now attempting to hold me liable for its oversight. This is a clear-cut case that needs to be rectified right away or put in front of USAA's legal counsel.
I know how serious this is for you, @DontWalk.Run!, and understand the urgency in getting this resolved. I've confirmed that a Subject Matter Expert is researching this and have requested another follow up with you. Please know they aren't in the office at the moment, but will have the request in the morning when they arrive. Additionally, they will need time to review. - Cathleen
@USAA Is USAA starting over on the review of this? Just wondering as I had something that was going to be reviewed and never heard anything back from USAA so my brother and I just took another route. Please remember that our urgent matters sometimes need to be USAA's urgent matters and more importantly, they became urgent matters because USAA didn't do their jobs to begin with. This member is fairly frustrated with the same old "we'll get a specialist to look into the matter and they need time to review". Please define time to review (or rereview) - 3 days, 7 days, 1 month, 3 months????
@NSueZ Thank you for making several excellent points in your recent post. How long does USAA require when stating they "need time to review" a request was particularly good, The 20 days that passed since my initial post should be sufficient for USAA to at least get a firm grasp of the issue(s) and provide some indication of how long it will take to resolve these issues. I don't think it's unreasonable to expect some sort of timeline for resolution after almost three weeks for review.
Kicking the can down the road and not addressing the issues I raised on a timely basis can be considered, "acting in bad faith." Paying significant punitive damages and liability for a customer's legal expenses are just two examples of what banks and insurance companies face when acting in bad faith. USAA counts on members lacking awareness of and failing to assert their legal rights. USAA demonstrates this is by making empty promises to review something (but failing to do so) requiring members to ask repeatedly until they give up or go another route.
I should've gone to the Insurance Commissioner straight away when USAA employed a shockingly high number of delay tactics when settling my homeowner's personal property insurance claim after a fire destroyed our home. It took four years and over 1,500 hours of my time (regrettably, I'm not exaggerating) for USAA to pay what was owed under terms of our insurance policy. Going to the Insurance Commissioner would've cut years off the time for USAA to comply with the Unfair Claims Settlement Practices Act. I'm not making that mistake again and will get the Bureau of Consumer Financial Protection (BCFP) and other related organziations involved if USAA fails to follow through with its promises to act or makes decisions inconsistent with the law.
I also liAnother great point you made relates to how
It's unclear to me what confirming "a Subject Matter Expert is researching this" means. I mentioned Erica, who works in the fraud department, already contacted me. I called her to advise researching transactions or account history since January is unnecessary and simpy removing the unauthorized account holder would be sufficient.
ady spent 20 days since my initial post, which is a considerable amount of time. \to - at a minimum - get a firm grasp of the issue and . That's a considerable amount of time to review the issues I've raised. Cathleen Also, Several days after my initial request I get a call from Erica telling me she's researching I received a call from
@USAA @NSueZ "Starting over on a review," impies completion of some research or other work by USAA on this case (i.e., it was "started" to begin with). Surprisingly, I'd be marginally pleased to learn USAA is "starting over" because it would indicate USAA started working on my case.
Regrettably, as anyone who makes even a cursory review of discussions on this forum can attest, the more likely explanation is neither USAA's so-called "CEO Executive Response Team" nor the "Subject Matter Expert"invested any constructive effortresolving these extremely urgent and time sensitive issues for three weeks.
These problems, which are now urgent issues, arose out of failings by USAA to do what members rightfully expect: For USAA to take measures to reasonably protect assets we've entrusted to them and for USAA to act as a fiduciary and comply with applicable State & Federal Rules and Regulations. As NSueZ points out, these became, "urgent matters because USAA didn't do their jobs to begin with."
Specifically, USAA compromised security of our savings account by allowing an unauthorized person to become an Account Holder, who now possesses the ability to make withdrawals from it.
Further, USAA needlessly wasted over 50 hours of my time on the phone (USAA records support this) by wrongfully denying refund of an unauthorized, fraudulent transfer of $11,000 out of my account. Yes, I had to spend 50+ hours explaining and educating USAA reps on why their failure to reimburse was inconsistent with their terms of service and in violation of the law only fours months ago.
More recently, USAA failed to confirm a $22,000 deposit made to an account was properly endorsed - it wasn't - and is attempting to hold me responsible for it in violation of Uniform Commercial Code § 4-401(b).
Further, USAA failed to exercise reasonable care overseeing the account by authorizing a wire transfer of 10x the average account balance before insuring a check - over 20x the average balance - actually cleared (yes, this is the check with the forged signature).
And finally, USAA is in violation of 12 CFR Part 1005.6(b)-2 by wrongly holding us responsible for more than the amount allowed under Regulation E.
Each of these failures by USAA led to the current sense of urgency with which this case needs to be resolved.
I expect a response to each point made and every question raised in my posts from someone competent enough to provide answers. Failing to do so and continued "kicking the can down the road" will only likely bring about swifter and severe consequences for USAA from regulators.
I'd really like to get this resolved without the need to get third parties involved. Please take action that instills confidence reasonable progress is being made on my case. Unfortunately, it doesn't appear to be the case from my perspective.