What is so good about USAA?!? It feels awful and I have't even been accepted yet!

New Member
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20 Comments (20 New)

Am I missing something? A local investment banker  recommended USAA for variety of products I use so I decided to apply. It has been 45 days and still not finished. Constant emails and messages contradicting each other, requesting even more documents... A nightmare. Then I looked reasonably:

1. There is no dedicated person that can be my point of contact for banking, insurance, annuities, investments. Instead you have to deal with dozens of nameless people of unknown qualifications. Bad.

2. To get anyone on the phone it takes several minutes of ridiculous 'security checks' automated and verbal. They assume my time is worthless. Bad.

3. To log in is also complicated and time consuming. Bad.

4. There are no physical offices. ANYWHERE! Bad.

5. You cannot meet face to face for complicated products that take time to explain in person, like insurance and annuities. Bad.

6. People I spoke to so far don't seem overly helpful or competent. Bad.

7. There are no specific phone numbers and emails to communicate repetedly with a specific USAA person. Bad.

 

 I don't know how USAA would handle real problems like credit card disputes, insurance claims, lost ATM card overseas, loan documentation... but at this point I am highly sceptical. Compared to American Express, Fidelity and some banks I use, USAA customer service and efficiency seems subpar, to put it mildly.

 

What am I missing? What is good about USAA????

20 Comments
USAA Service
USAA Service

@Technocroat, I regret hearing how disappointed you are with USAA. Your comments are taken seriously and I'm engaging a subject matter expert to address your concerns. Thank you for taking the time to post your thoughts. -Paula

New Member

I would suggest you move on to another bank that respects you, your time and your money. I've experienced similar problems with representatives over the phone. 

Also I would suggest that anyone who reads this that is living paycheck to paycheck, run away and do not turn back. I'm telling from experience a bank like USAA is not made for you.


For example USAA closed my savings account because I don't have enough money.

 

I'll give you another example, I also have a Wels Fargo account. Let's say that WF account has $5.00, then Netflix charges me $15.00 putting my account at -$10.00. Netflix is paid and I can still enjoy my shows. Now my account will be in the negatives for about a week before I'm charged a fee, giving me the opportunity to make up those $10.00 and pull me out of the negatives.

 

Now let's take that same scenario but with USAA. So I have $5.00 in my account, Netflix attempts to charge me $15.00 but, Netflix gets no money. Fair enough right? But, wait USAA notices your account has "Insufficient Funds" and their was an attempt to charge your account so, USAA immediately  charges you an "Insufficient Funds Fee" of $29.00. So, now you're account is at -$24.00 and you have no Netflix.

 

But, it won't stop there. USAA will allow companies to keep attempting to charge your account if they didn't get the money the first time. I've had a company attempt to charge my account 6 different time for The same charge. That's $29.00 6 different times. That's $174 worth of fees going into USAA's pocket and out of my paycheck.

 

I understand these fees are a part of banking but, I wish USAA would just let me have a chance to fix my negative transactions. Or at least stop companies from making multiple attempts on the same charge.

USAA Service
USAA Service

This is a hard message to hear @SadVictim, as we never want our members to feel this way. Please be aware that we do not require a minimum balance on any account, however if the balance remains $0 for an extended period of time it may be closed for non-use. If you have specific questions, please initiate a secured chat by visiting USAA.com. I hope you have a better rest of your day. -Emily  

Contributor

I couldnt agree more. USAA acts as though they're services are so great that they do not have to compete with the rest of the market. Their insurance prices are outrageous. Their mortage rates are crazy. I also looked into their car buying services. I built a Yukon Denali XL with the items I wanted and USAA quoted me $94,000. I built the EXACT same vehicle on GMCs website and it come to $80,000. But USAA touts .05% off your interest rate if you purchase the vehicle through them. Ive got an 790+ credit score and can get lower rates from a local bank. What a joke!

 

Everything I mentioned above is why I did not finance my last home purchase through USAA. Why I stopped using USAA vehicle and property insurance. And I certainly won't pay $14,000 extra on a vehicle through USAA. Im actually waiting on them to start charging me to keep money in their banks so I can go elsewhere with my banking. The sad part of this all is when you tell one of their faceless sales advisers that you can get it cheaper elsewhere and provide a quote to prove it, they tell you they are the best in the market and dont have to be competitive and refuse to adjust their rates. What's worse? All these junior enlisted and newly commissioned officers think they're getting fantastic deals and know no better. It could really be chalked up to a scam. 

 

Just writing this has convinced me to move my banking somewhere else as soon as I'm home from Iraq. 

USAA Service
USAA Service

@jdanielm1, We pride ourselves providing exceptional customer service and products. I regret that his hasn't been your experience. I've forwarded your information and will engage a subject matter expert. We will follow up with you. - Ben 

New Member

Don't just walk...RUN away from USAA.  They are awful.  I've been a member for 30 years.  In the early days, when they were a co-op of US military officers, USAA was a company par excellence.  They were the best at everything.  Best, least expensive insurance (one didn't even bother checking elsewhere because USAA was half what others would charge), best banking, ahead of their time with early websites and other features and services.  Over the years they have gone steadily downhill. This was accelerated when they allowed nearly anyone to join. Their insurance got more expensive as they covered increasingly risky members and everything else followed.  Now they are just incompetent and you can find betteer, less expensive insurance elsewhere. I have taken my insurance elsewhere and have been steadlily disentangling myself from their bank - difficult to do after having been intertwined for so long. But I will get there. I suggest everyone else does the same and we let this company die on the vine.

USAA Service
USAA Service

@ljhfkjgh, We appreciate your feedback. I am sending your feedback to the appropriate dept and I am also forwarding your concerns to a subject matter expert. Thank you for reaching out ~Tom

Occasional Contributor

Since they changed the "great things are coming" progam changes.  I have had to pay late charges etc because the new program does not do bill pay like before May 19, 2019.  Always before categorized bill pay when entered.  Now it doesn't.  Have had three IT NUMBERS for the problem, but does not answer me, and never corrects the bill pay categorized program.  Have been a member forover 50 years, and never have been treated as they treat me now.  Paid off a loan and now refuses to give me another loan at a lesser amount.  

 

 

USAA Service
USAA Service

Hello @Libby103. Thank you for your 50 plus year membership. I do understand your concerns and have forwarded your post to a subject matter expert for further review. -Colleen

New Member

USAA is comparable to Bank of America. They are both terrible. I haven't been this upset with a bank since I closed out my Bank of America account when I was 19 years old. I'm now 29. I am active duty military and I opted to join USAA because my grandfather talked about how great they were. I respectfully disagree with him. USAA is not the bank for me. I am  currently in the process of switching to Navy Federal. Just waiting for my last paycheck to clear so that I can pull the rest of my money out of my account. I cancelled both my car insurance and checking account. USAA will never receive business from me ever again. 

USAA Service
USAA Service

@.......676, This is not the experience we want for you. I will forward your message to the appropriate area to review your concerns. ~ Lori C

New Member

Amen!

 

Finally I see others with the same experience I've consistently had with USAA for decades.  I drive myself crazy  trying to figure out why everyone loves USAA so much?  I've had nothing but disappointing experiences with USAA. I can't speak to their customer service because I've never had an opportunity to become an active customer since they either denied me or quoted rates so outrageous they made it clear they didn't want me as a customer.  First home purchase VA loan? Wish I could say their rates weren't competitive but I wasn't even given a rate because I was denied altogether even when a number of other banks approved me.  This is a guaranteed  loan by the Veterans Administration and a "military service" company wouldn't even offer a loan to a Vetetan!?  Car Insurance? I had a DUI on my record and they first denied me altogether when so many others accepted me.  I tried again a couple of years later and they quoted me over $2,000/mo!  Meanwhile, my insurance carrier was charging me $300/mo.  Home Owner's Insurance?  Wouldn't even  write my house. 

It's now been over 10 years since my DUI so I thought I'd give them another chance on the car insurance. I'm currently with Geico paying $179/mo for two cars and USAA quoted me $389/mo!  

Every time I hear people talk about how great USAA is and how they have the "best rates", I want to puke!  It's obvious USAA has brainwashed their customers into thinking it's not even worth looking elsewhere so they can keep overcharging naive customers.  Either that or they don't like me in particular for some reason.  
 

USAA Service
USAA Service

Hello @Finance_Guy, I'm sorry for the experience you've had when trying to obtain new quotes and for the disappointment in the rates you've been quoted. This is definitely not how we want you to feel about us and can understand your frustration. Based on the info you've provided, I'd like to have things reviewed further on your behalf. I've forwarded your message to the best team who will be reaching out to discuss more together. -Lori G

New Member

Couldn't agree more - way overhyped organization with the absolute WORST customer service I have ever dealt with in a bank.  I would trust a pseudo psychic who tells me to bury my life savings under a tree for 30 days before dealing with this horrid organization again.  To think I recommended this bank to my father who is a vet.  Should have seen the writing on the wall when they moved investment accounts to Schwab who now charges me fees when I invest in the USAA index funds through my retirement accounts.  Now I wouldn't deal with them if I was paid to.  

USAA Service
USAA Service

Dear @U*S*A*ABLOWS

 

I appreciate your feedback. I am sorry to hear you feel our service is the worst you have dealt with. We will take your feedback and log-it. Thank you for reaching out. - Jesse 

New Member

BTW - was a USAA member since 2011 and now I won't recommend this bank to ANYONE.  If you are a homeless vet who happens to get your government checks sent to this bank - well good luck with that because they will close them if you do not have a physical address.  They don't give two squats if it is the middle of a pandemic either.  I am not a vet but have been considered homeless since 4/24/2020.  I have been living in motorhomes and hotels since then until 9/6/2020 when I began moving into a new place in another state.  I haven't even had a chance to forward my mail yet so the 2 checks they sent my Friday after rejecting my auto-pay for my student loans, phones, etc. (and that I am not paying fees for the rejection) and also rejecting my paycheck from my employer will be at least 2-3 weeks down the road.  I am completely without funds until then to pay those items either.  

 

Notice sent 7/28/2020 to my email asking for me to verify my physical address.  Without a physical address I verified my mailing address.  Not a peep from this shady organization until today when I went to use my debit card for the first time in ages  at the grocery and was loudly told that my account was invalid.  Mind you - I had been in the account last week verifying my funds and no new or special notice other than the COVID-19 notice.  I call USAA and find out that they have mailed the checks and I am SOL but hey - I can send those checks right back and apply for a new account.  As if.  They couldn't pay me to do business with this organization again - no branches unless you are lucky enough to live in Phoenix or San Antonio (which I lived in both).  Then you get the pleasure of waiting in lines that can be an hour or more long while you are on your lunch break because you were dumb enough to bring in several hundred dollars in coins to be counted and instead of putting it directly in your account, they make you wait in line to submit a receipt to the teller THAT DAY or risk just losing the money.  Or sit in the drive through for 45 minutes in the middle of a heat wave because they won't allow you to deposit a check for more than $10K through the app or ATM. 

 

Good God - just find a local bank or credit union - don't deal with this nightmare of a "bank".  

USAA Service
USAA Service

@U*S*A*ABLOWS, this is disappointing to hear and I understand the seriousness of your concerns. I will certainly share your concern with the appropriate area for further review. We appreciate your membership and the opportunity to address your concerns. 

New Member

@USAA Social Service - whatever.  Since the deed is done and I apparently am no longer a member - it is ironic that you 'appreciate' my membership now.  

Occasional Contributor

Here's one: credit card had $3 on it, found out I had interest charges bringing to over $5. First time ever I mail in a check. So because USAA was too lazy or uninterested in doing something for customers and have a lookup by name/address, they sent it back. By the time they sent it back with a letter (due to slow mail now, which USAA knows), my bill was late. They cashed it but destroyed my credit rating for a late payment. $5 payment. What kind of evil does that? The evil that is USAA.

USAA Service
USAA Service

This certainly isn't the way we want you to feel, @nichollsvi. I've sent a request to a subject matter expert to look into this situation for you. Please know, they aren't in the office over the weekend, and will require sufficient time to complete and review the research needed. - Cathleen