My PayPal was recently compromised and funds were taken from USAA, Navy Fed and even another PayPal bank. I reported it to USAA and they gave credit no problem, NFCU did as well and also walked me though security measures and PayPal although hard to communicate with also credited my account. I then cancelled all PayPal accounts and even put a block on PayPal on the advice of a USAA representative. All seemed well until USAA sent a note stating that they were taking the money back unless I could prove that I paid for goods via another source. Problem was it that it was not a payment for anything as I explained to two different representatives. And they understood,  but the note stated, 

 InkedInkedUSAA note _LI.jpg

Again, there was no information to provide and I truly thought all was over and done with, so I replied to their request letting them know yet again that there is no information, nor services or merchandise or duplicate transactions and to my surprise the reply was:

USAA note 2.jpg


Go figure, So after dealing with them for throughout this challenge and losing a little over $200. and knowing that both Navy Federal and even a foreign owned and run bank like PayPal takes better care of their customers I have simply given up on USAA. I do expect the automated reply and all that goes with that but as of now this is just a warning to others and I do not and will not jump through anymore hoops and just feel frustrated, let down and have already marked it us as lost $$ and a lesson learned. and the lesson was I now know where this rating comes from. 



Given up on USAA? I can't imagine why...


Check out my "Cautionary Tale for USAA Homeowner's Insurance Policyholders: My 4-Year Struggle to Get Policy Benefits."


I'm sure this will come as a surprise to you, no word back on the $10,000 fraud charge on my daughter's (then our joint savings account), the fraudulent addition of an unauthorized person as an accountholder, or any status on my chargeback. 


I missed a phone call from Jennifer at USAA's "Advocacy Team," who I called back and left a message. Interestingly, she didn't contact me about the three issues I briefly explained I wanted resolved. Instead, it was about, "concerns that you presented on social media on your property claim." 


So why do I find this phone call odd? Well, first of all, they already paid out all our personal property policy benefits. Also, when I referred to the poor handling of my claim when mentioning my dissatisfaction with the three unresolved issues once again, the issues I want resolved are ignored, but they offer to help resolve issues on the personal property claim.


As a quick aside, I work as an equity portfolio manager who picks stocks for investment portfolios (I co-managed roughly $7 billion when I worked at Invesco). Scrutinizing a company's financial statements is part of the job and reading between the lines on company announcements and activities is another.


I wouldn't make an investment decision based on what I found so far (so I'm not "highly confident" of this), but here's my working theory:

  • USAA sells off its investment business to Victory
  • Customer service is largely outsourced to another company (this is a *fact* not theory; though unsure of the % of calls go to third parties so "largely" is speculation) in the hopes of achieving higher margins/profits
  • The service provided to members in USAA's banking division continues to deteriorate
  • Judging by posts to this message board, management doesn't appear to care about losing banking customers
  • However, board moderators (those who copy/paste the "I've forwarded your concern to a Subject Matter Expert. Please give us time...") seem to be very sensitive about property insurance concerns
  • Banking margins are roughly 24%, whereas insurance margins are closer to 8%

THEREFORE, USAA must be grooming the insurance business for a sale to a third party. Alternatively, they are milking the banking division as a "cash cow," investing very little in the business (i.e., Put just enough money into the banking division to keep it going and collect the profits for as long as customers will put up with poor service) and are focusing on the higher margin insurance business.


Either way, it's bad news for USAA banking customers. My guess is USAA banking will take a few fraud losses as possible (i.e., push customers into going directly to regulators such as the CFPB).


Just my opinion...