Consumer complaint received 2024-01-20
Company: UNITED SERVICES AUTOMOBILE ASSOCIATION
State: TN
Product: Checking or savings account
Sub-product: Savings account
Issue: Managing an account
Sub-issue: Deposits and withdrawals

Complaint:
Case Number : XXXX In accordance with the Office of the Comptroller of the Currency ( XXXX ) complaint process I have tried numerous times to settle this matter with USAA. USAA policies and actions as of XXXX XXXX XXXXXX/XX/year>, are in violation of federal law, specifically Regulation CC ( 12 CFR Part 229 ) which implements the Expedited Funds Availability Act ( EFAA ) and the Check Clearing for the 21st Century Act ( Check 21 ). USAA is in violation of XXXX law as well. 
The violations : XXXX availability rules for check number XXXX of {$6200.00}, from XXXX XXXX XXXX XXXX 
XXXX reporting requirement concerning checks with reasonable cause to doubt collectability. 
Section XXXX Exceptions ( XXXX ) Reasonable cause to doubt collectability states, Reasonable cause to believe a check is uncollectable requires the existence of facts that would cause a well-grounded belief in the mind of a reasonable person... The reason for the banks belief that the check is uncollectable shall be included in the notice required under paragraph ( g ) of this section. 
Section XXXX ( g ) Notice of exception ( XXXX ) states that USAA must provide us with a written notice, and the notice must contain the following : a number code identifying the customers account, the date of deposit, the amount of the deposit that is being delayed, the reason the exception of invoked, and the time to funds availability. 
( ii ) Timing of notice at the time of deposit, or if discovered later the notice must be sent as soon as possible, but no later than the first business day following the day the facts are known. 
When the check was deposited on XX/XX/year> ( posted date ) {$2500.00} was released, and a normal hold of XXXX days was placed on the remaining funds which is in accord with XXXX Availability schedule ( c ) Nonlocal checks. The following business day the depositor contacted USAA in order to request expedited release of the funds and found that USAA had placed a XXXX XXXX hold on the check. No reason was provided, and no written notice was sent, and in fact, to date, no written notice has been provided and no evidence or explanation has been given concerning the hold. This violates the above sections. The depositor was told that funds would be made available by XX/XX/scrub>XXXX XXXX XXXX USAA made no further contact. On XX/XX/XXXX, the depositor saw the funds released into his account. However, though the funds were released, USAA placed a hold on the depositors account. This is XXXX business days from the time of deposit. It is now XXXX business days from the time of deposit and the funds have still not been released. 
Section XXXX ( h ) ( XXXX ) availability of deposits subject to exceptions states that USAA may extend the time to availability of funds by a reasonable period. ( Note that the depositor contacted USAA on XXXX XXXX and USAA verbally stated that from this date the check was in an exception status. ) ( XXXX ) For the purposes of this section, a reasonable period is an extension of up to XXXX business day for checks described in XXXX ( c ) ( XXXX ) ( vi ), XXXX business days for checks described in XXXX ( b ) ( XXXX ) through ( XXXX ), and XXXX business days for checks described in XXXX ( c ) ( XXXX ) and ( XXXX ) or XXXX ( f ). A longer extension may be reasonable, but the bank has the burden of so establishing. The maximum hold without further burden of proof is XXXX business days from the normal required release date, making the date of required release XX/XX/XXXX. It is XX/XX/XXXX, and to date no reason has been provided, and no evidence has been provided, and the funds have been released in the depositors account since XX/XX/XXXX. The account has been on hold for XXXX days after the release of the funds into the account. 
USAA was notified by the depositor that the funds in question are related to the purchase of a motor vehicle. USAA has not notified the depositor in writing, by phone, via text or email that the funds are being held, and have provided no reason for holding the funds, and have shared no evidence that the hold is reasonable. If the funds are being held because there is evidence of fraud, then the lack of notification to depositor, the honoring of the check and depositing funds into the depositors account, and then placing a hold on the rightful withdrawal of funds from the depositors personal account has put the depositors property at risk, and USAA is facilitating fraud and the theft of a motor vehicle. 
Additionally, and separately, USAA has been notified XXXX separate times concerning the XXXX status of XXXX account holder and has refused to accommodate by communicating in writing the reasons for holding the funds. 
The depositor is in possession of the check. A copy of the check with the depositor photo ID has been uploaded to USAA, as have XXXX XXXX XXXX XXXX  papers signed by both parties outlining the sale of the motor vehicle, a statement concerning the steps the depositor has made, text messages showing the conversation outlining the transaction selling the vehicle and a power of attorney. We also have a recorded phone conversation with the sender of the check agreeing to buy out the debt on the vehicle. The sender reports that the funds have been withdrawn from their account by their bank.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation