Consumer complaint received 2020-04-11
Company: UNITED SERVICES AUTOMOBILE ASSOCIATION
State: GA
Product: Debt collection
Sub-product: Credit card debt
Issue: Written notification about debt
Sub-issue: Didn't receive notice of right to dispute

Complaint:
In XXXX, I received a $ XXXX personal loan from USAA that offered a low interest loan to new military officers. I paid on time every month however got behind around XX/XX/XXXX however still made small payments ( less than monthly minimum of about {$450.00} XXXX. Without warning or negotiation, my loan was closed/charged off with an approximate balance of $ XXXX in XX/XX/XXXX. USAA stated that the loan account was 120 days past due however I had been making payments each month, even if it was not in the amount specified ( always over {$400.00} ). I called and was told by a rep, I could only adjust my payment one time for the life of the loan. Once I missed that one payment, the next months payment amount was upwards of {$800.00} and it continued to go up from there. I made an approximate {$400.00} payment toward that balance for that month. The following month, the balance amount was {$800.00} and I again made an approximate {$500.00} payment which would bring the next month payment to {$700.00}. 

USAA then sold my loan to an UNLICENSED collection company, XXXX, who has multiple lawsuits against them for fraudulently collecting money. They are not licensed to collect in Georgia, has an F with the XXXX XXXX XXXX and has had several complaints about them. Unbeknownst to me when I communicated with them, I made 2 payments of {$400.00}. None of which, ever went to my USAA balance. It was basically thrown down the drain. XXXX also continued to contact me AFTER a cease and desist letter ; harassing me continuously. After I sent a letter to XXXX, USAA then sold my information to a second company who is similarly fraudulent. USAA was negligent in selling my information to TWO companies that are not legitimized and illegally collecting money in a state they do not have a license to collect in. 
The other issue is, I had an XXXX card with a $ XXXX limit, {$500.00} balance as of XX/XX/XXXX, also with USAA ; including countless other accounts such as multiple checking, savings, auto insurance, and stocks. I have also paid the XXXX card on time, and was about to pay off in full as I was attempting to clean up my credit. XX/XX/XXXX, I discovered USAA had used the Service members Civil Relief Act ( SCRA ) to " credit '' the remaining ~ {$500.00} balance and close the XXXX credit card! I qualified for the SCRA when holding the card and that was never offered to me or explained. When speaking to multiple USAA reps on the phone, I was told, my XXXX credit card was closed because it was a " business decision '' based on my loan that had recently closed - even though I was never late on that credit card. The USAA representative told me there were forms sent to my account inbox stating the closure of each account. I never received any documents or assistance as a loyal customer. I have been a member for close over 10 years. 

Recently, ( XXXX ) this debt has resurfaced into affecting my military XXXX XXXX XXXX clearance. USAA has informed me the loan is no longer theirs and they have already claimed it as a loss. So the debt is now in limbo.and I am possibly facing repercussions in the military career and personal credit. I was consistently making payments toward the loan and was not informed nor clear that this would close my account or remove my XXXX XXXX credit card.

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