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I have been a USAA member for 43 years. USAA is not the customer oriented "one-stop" financial services company it used to be. USAA used to offer a full line of financial services: banking, credit card insurance, investments, brokerage, home mortgages, personal loans, etc. They still offer banking, credit cards, personal loans, home mortgages and insurance, but they have have discontinued their long standing policy of not selling home mortgages... now they sell home mortgages... and the companies they sell the mortgages to are not highly rated and do not provide the level of customer service USAA members expect. Additionally, there are better credit card alternatives available in that marketplace. USAA sold their USAA mutual fund business to Victory Capital and are in the process of selling their investment brokerage business to Charles Schwab. Although their insurance claims process is still among the best in the industry, the cost you pay for your insurance is among the highest in the industry. When you contact USAA by phone, the automated greeting takes multiple entries to get to the department you wish to reach and phone hold times to speak to someone "live" have grown significantly. I am seriously considering closing my USAA banking accounts and purchasing my insurance from another provider. Sad!!!!

21 REPLIES

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I agree 100%! USAA is not the same company they used to be.  Even on the auto insurance side of things. Used to be the best around and the lowest priced. 

Maybe all those commercials during NFL games cost them a little too much!

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I always received fair service from USAA,I agree with you that it's not what it use to be; and in case you didn't know they use your rank to determine your insurance rates. For example a drunk/alcoholic Col. and get better rates than an up standing NCO.

It should be straight across the board and based on age, driving record, etc... Not rank!

Also, when this pandemic hit I asked them to waive the interest charges on my credit card; I would continue make payments but just wanted the interest waived. I received a call from the CEO's office which was a nice touch, but no word since, and yes I'm still paying interest.

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Hello @Daffy216, it's tough to hear your disappointment with our products and service. Your feedback is important to us and I'm engaging the appropriate area to review your concerns further. -Paula

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There sure is a different feel to USAA now.  I cannot stand that a company you and I own is advertising to a fixed audience of potential customers.  It still takes military service to join  Why all that advertising

 

BUT more importantly, USAA has sold a major part of its enterprise.  The Mutual Fund and Brokerage companies for around $2 BILLION.  Now when I check where the $2 BILLION went, they will not account for all of it or give specific answers.  They tout that an extra $280 million went to dividends.  Far short.

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@Abacus Repair, thank you for reaching out. USAA's mission is to serve the financial needs of our members — the men and women in the military community and their families. Our marketing efforts are meant to reach and inform all 60 million members and prospective members about what USAA is and all that it has to offer. But USAA research shows that just under one half of eligible veterans are even aware of USAA.

 

Net proceeds from the Victory Capital and Charles Schwab transactions will be used to further benefit the membership. For example, USAA will invest appropriately to improve the competitiveness of its banking and insurance products, as well as look to distribute an appropriate amount in the annual member distribution process. ~DC

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I just had a chuckle.  You state that the "USAA mission is to serve the needs of it's customers".  Au contraire,  USAA's mission is  to make a profit off of it's customers.

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@Icarus,
And provide "world class service" if you read some of there other postings. 😉
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no USAA's business is to boost bonuses for Management. At least is how they act. USAA is not a leader, it is a follower. They only announced rebates due to COVID after other companies did.

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As far as the mortgage aspect of these posts,  I can say that USAA does not service their mortgages, this actually is not a new business decision.  USAA discloses that we do not service the loan and we do use our resources to vet the company before selecting them.

-Christopher