United States, the federal savings bank and insurance company the military and veterans rely on must pay consumers $ 12 million in restitution and $ 3.5 million in fines for breaking laws that protect consumers.
Based in San Antonio, Texas, the federally chartered insurance company has violated Electronic Funds Transfer Act and Regulation E. The USAA has repeatedly failed to honor consumer claims on pre-authorized electronic fund transfers. The USAA also failed to properly investigate errors reported by consumers.
To make matters worse, the USAA has also reopened closed deposit accounts without seeking authorization or notifying consumers.
USAA stands for United Services Automobile Association and has 12.4 million members. Over 66,000 members have been affected by consumer protection violations. The company will pay $ 181.59 to each affected consumer.
The case is titled, In re USAA Federal Savings Bank, file n ° 2019-BCFP-0001. You can consult the consent decree here.
The Consumer Financial Protection Bureau (CFPB) obtained the consent decree as a regulation. The Bureau is an organization dedicated to modernizing the application of federal consumer protection laws.
According to its website, the CFPB was established to provide a single point of accountability for the enforcement of federal consumer finance laws and consumer protection in the financial market. Its main objective is:
- Eradicate unfair, deceptive or abusive acts or practices by writing rules, supervising businesses and enforcing the law
- Enforce laws that prohibit discrimination in consumer credit
- Support for consumer complaints
- Improve financial education
- Research of the consumer experience of using financial products
- Financial market surveillance for emerging consumer risks