USAA banking settlement: 66,000 customers to split $12 million


$1 bill (Pixibay)


More than 66,000 customers of USAA Federal Savings Bank are in line for some $12 million in settlement funds, according to the Consumer Financial Protection Bureau.

The CFPB announced Thursday it had reached a settlement with USAA Federal Savings Bank, which serves military members, retirees and veterans. The settlement came after the CFPB found USAA violated the Electronic Fund Transfer Act by failing to honor customers’ stop payment requests on preauthorized electronic funds transfers, as well as failed to find “reasonable” resolutions to resolve errors. USAA also violated the Consumer Protection Act of 2010 by reopening deposit accounts customers had previously closed, despite not having authorization or providing adequate notice, the consent order said.

The settlement includes $12 million to certain consumers – roughly about $181 each – and $3.5 million in civil penalties.

San Antonio, Texas-based USAA neither admits nor denies the allegations, the CFPB said. In a separate statement, the company said it had been “proactively addressing” the issues for more than a year and most are resolved.