USAA to pay $12M to members after failing to stop unauthorized electronic payments

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Every USAA member should read the news this morning at Stars & Stripes (www.stripes.com).  Seems that USAA has been fined by Consumer Financial Protection Bureau for failing to protect us the members/owners against fraud.

Lester Lyles and Stuart Parker both need to be fired immediately.  They dishonor this fine organization.

How much longer do we tolerate this?

This 48 year member is almost gone.

 


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I agree. As a recently separated USAA employee of 7 years, many of us wondered if USAA is the new Wells Fargo. USAA lost their way by putting profit and growth over its members. USAA membership has double in recent years and they continue to fail to hire the correct and enough employees to properly service the membership. 

Very interesting article. Military.com republished the 1/4/2019 Stars & Stripes article as well.  The following quote from the findings should worry a lot of former customers and those planning to move their business elsewhere:

 

"USAA also ran afoul of the Consumer Financial Protection Act of 2010 by reopening closed deposit accounts in certain circumstances without providing timely notice, according to a bureau statement."

 

I read several old posts on this website about people trying to completely cut ties with USAA after terminating their services but were unsuccessful. It seems your personal information still kept on file even if you no longer do any kind of business with them. Talking about inviting potential fraudulent activities. One reason why I moved all my finances out and closed my credit cards with this istitution over a year ago. Even took me a year of regular email correspondance to get them to remove a rewards acount that was tied to a credit card closed for over a year.

 

The also article mentioned that members who were impacted financial services and insurance company's failure to stop electronic payment transfers could receive a $181.59 check. I'm sure a lot of members probably lost much more than what they might get back from this settlement in order to correct the mess they were put in by USAA.

 

The article mentions that USAA replied by saying: "None of the issues reflect an intention to take advantage of our members. In fact, we believed our processes would help resolve matters faster. We take responsibility for this situation."

 

Unfortunately, USAA believed wrong and ignored customer concerns by giving them the runaround and got caught not agressively persuing or resolving those concerns--and got called out because many of your customers had to seek assistance from several government/civilian agencies.

 

To USAA management--see what happens when you stray from your core values and mission.  Remember them? They were established a very long time ago--and for some reason--you strayed away from them? Maybe its time dust them off and use them again. Maybe the management team should have several training sessions to refamiliarize all their managers (and decision makers up the chain to the top) with those core values and mission.

8 REPLIES

I agree. As a recently separated USAA employee of 7 years, many of us wondered if USAA is the new Wells Fargo. USAA lost their way by putting profit and growth over its members. USAA membership has double in recent years and they continue to fail to hire the correct and enough employees to properly service the membership. 

Thanks for your reply, you've confirmed what I and a lot of others have been thinking.

THis explains the email I received yesterday stating that I was getting a refund due to a dispute sometime between 2011 and 2016. I wish they did this on their own accord.

Agree, Bank of America which I dislike seems better now.

Very interesting article. Military.com republished the 1/4/2019 Stars & Stripes article as well.  The following quote from the findings should worry a lot of former customers and those planning to move their business elsewhere:

 

"USAA also ran afoul of the Consumer Financial Protection Act of 2010 by reopening closed deposit accounts in certain circumstances without providing timely notice, according to a bureau statement."

 

I read several old posts on this website about people trying to completely cut ties with USAA after terminating their services but were unsuccessful. It seems your personal information still kept on file even if you no longer do any kind of business with them. Talking about inviting potential fraudulent activities. One reason why I moved all my finances out and closed my credit cards with this istitution over a year ago. Even took me a year of regular email correspondance to get them to remove a rewards acount that was tied to a credit card closed for over a year.

 

The also article mentioned that members who were impacted financial services and insurance company's failure to stop electronic payment transfers could receive a $181.59 check. I'm sure a lot of members probably lost much more than what they might get back from this settlement in order to correct the mess they were put in by USAA.

 

The article mentions that USAA replied by saying: "None of the issues reflect an intention to take advantage of our members. In fact, we believed our processes would help resolve matters faster. We take responsibility for this situation."

 

Unfortunately, USAA believed wrong and ignored customer concerns by giving them the runaround and got caught not agressively persuing or resolving those concerns--and got called out because many of your customers had to seek assistance from several government/civilian agencies.

 

To USAA management--see what happens when you stray from your core values and mission.  Remember them? They were established a very long time ago--and for some reason--you strayed away from them? Maybe its time dust them off and use them again. Maybe the management team should have several training sessions to refamiliarize all their managers (and decision makers up the chain to the top) with those core values and mission.

I agree 100 percent.  I was going to Denver on a personal trip and was told I was deploying.  Had a car thru hotwire and a hotel the same.  Called directly hotel cancelled no problem,  called advantage and they would not cancel.  Called hot wire said I still owe 176.06.  Called USAA, sent plane tickets and orders.  They disputed cool.  Just to see it show back up again.  They disputed and it showed back up again!  Called again explained, good rep this time...canxed my card for me (as Fraud) issued a new one cool.  Got a called last week saying I OWED for the car I used in Denver in November!  What the....  Rep had no notes, could not see disputes, department dont talk and quite frankly your dealing with people across america working in there PJs thats a fact!  22 years and these guys cannot not fix a 176 buck problem after allthe money I have given them auto/home CC money.  Told them to cancel my AMEX card Im done!  Paid there stupid money.  Just got a call and didnt answer,  this time no Sgt in title on the message it was Mister.  Working on dumping them totally they are nothing but Fraud company who does not care about the members!!!!!!!!!!!  From reading here others are being committed fraud on by USAA as well, hmmm

Agree fire them.  I agree 100 percent.  I was going to Denver on a personal trip and was told I was deploying.  Had a car thru hotwire and a hotel the same.  Called directly hotel cancelled no problem,  called advantage and they would not cancel.  Called hot wire said I still owe 176.06.  Called USAA, sent plane tickets and orders.  They disputed cool.  Just to see it show back up again.  They disputed and it showed back up again!  Called again explained, good rep this time...canxed my card for me (as Fraud) issued a new one cool.  Got a called last week saying I OWED for the car I used in Denver in November!  What the heck I was deployed overseas!  Rep had no notes, could not see disputes, department dont talk and quite frankly your dealing with people across america working in there PJs thats a fact!  22 years and these guys cannot not fix a 176 buck problem after allthe money I have given them auto/home CC money.  Told them to cancel my AMEX card Im done!  Paid there stupid money.  Just got a call and didnt answer,  this time no Sgt in title on the message it was Mister.  Working on dumping them totally they are nothing but Fraud company who does not care about the members!!!!!!!!!!!