USAA Federal Savings Bank may owe you money under a new settlement between it and the Consumer Financial Protection Bureau. Public domain photo by Jean Beaufort.
USAA Federal Savings Bank must repay 66,420 military, retired, and veteran members under a new settlement with the Consumer Financial Protection Bureau after an investigation found the bank failed to resolve errors, including not stopping preauthorized payments and reopening accounts without authorization.
The repayment plan amounts to $181.59 each for a total of $12 million in restitution, in addition to a fine of $3.5 million to the CFPB.
The bureau, in a Jan. 3 statement, says it found USAA violated the Electronic Fund Transfer Act and Regulation E by not honoring consumers’ stop payment requests and failing to initiate and complete reasonable error resolution investigations. More than 5,100 members accumulated fees totaling $270,000, and were reimbursed in 2017, according to the CFPB.
USAA said in a statement it has been “proactively addressing these issues for more than a year” and most have been resolved.
“None of the issues reflect an intention to take advantage of our members. In fact, we believed our processes would help resolve matters faster,” USAA said. “We take responsibility for this situation.”
Daily Report: Read the day's top news on the US Air Force, airpower, and national security issues.
The Air Force Association is closed on Monday for the Martin Luther King, Jr. holiday. The next Daily Report will be Tuesday, Jan. 22.
Tweets by @AirForceMag