Consumer complaint received 2023-12-08
Company: UNITED SERVICES AUTOMOBILE ASSOCIATION
State: TX
Product: Checking or savings account
Sub-product: Checking account
Issue: Managing an account
Sub-issue: Deposits and withdrawals

Complaint:
On the XXXX of XXXX I attempted to pay my rent and opened my USAA app to see that I was negative XXXX to my utmost shark and surprise, not exact but off the top of my head roughly that much. I contacted USAA to ask them what was going on and they told me it was a check that I had sent in electronically on XX/XX/2023 4 months prior. The person I spoke to when I contacted USAA also agreed with me and could not understand had never seen such a thing happen before. I called the following day got the exact same answer and told them I deposited the check and received about 20 % of it up front and then there was a waiting period to which I actually waited longer than the written waiting period and I assumed it was because the check was so large but almost XXXX weeks later I finally able to access my funds. Per the law in 12CFR 210.11 availability of proceeds of non cash items ; Time schedule, It reads the following and I quote : If the paying bank determines not to pay a check in the amount of {$5000.00} or more, it shall provide notice of non-payment such that the notice would normally be received by the depository bank not later than XXXX XXXX XXXX local time of the depository Bank ) on the SECOND BUSINESS DAY FOLLOWING THE BANKING DAY ON WHICH THE CHECK WAS PRESENTED TO THE PAYING BANK. 
Not 120 days later. The second business day they need to be letting USAA if they're going to honor it or not. This is beyond absurd and unacceptable. I can't pay rent I can't pay my bills You're going to literally make me homeless make me file for bankruptcy all in XXXX fell swoop because you guys did not follow the law. This isn't something you can go by This is the law this is something you do. You can not deviate from that timeline. 
Furthermore 210.11 ( regulation D ) availability of proceeds of non-cashed items, time schedule Regulation D : there is your bank that holds a settlement account show give either immediate or deferred credit to a sender a paying bank, or a returning bank ( other than a foreign correspondent ) in accordance with the time schedule of the receiving reserve Bank. A XXXX  Bank ordinarily gives credit to a foreign correspondent only when the XXXX  Bank receives payment of the item in actually and finally collected funds. But in discretion, a XXXX  Bank May give immediate or deferred credit in accordance with the time schedule ( B ) notwithstanding it's time schedule, a reserve Bank may refuse at any time to permit the use of credit Given by it for any cash item or return check, and may defer availability after credit is received by the reserve Bank FOR A PERIOD OF TIME THAT IS REASONABLE UNDER THE CIRCUMSTANCES Once again 120 days, a third of a year, is not reasonable under the circumstances nor is it the second business day. 

Per these LAWS I need that {$8000.00} returned back to my account immediately as this is absolutely ridiculous and you're essentially trying to ruin my life by doing this after being with you guys for XXXX  years This is how I'm being done at this point. I've made you guys literally hundreds of thousands of dollars and this is what I get for it after all these years it's absolutely ridiculous. The paying bank has not followed the law but more so you guys just allowed them and assisted them and not following the law by just handing them the money over when they just told you to 120 days later. A third of a year later you guys just said okay. That's absolutely ridiculous and absurd. When I waited the XXXX weeks I was under the assumption that the check cleared that's why you gave it to me that's what the waiting period is for. Had I not done that I would have never spent it but according to the law which I'm not going to go back and quote anymore because what I provided is already enough but once you've paid it to me that's the end of the deal because you wouldn't pay it to me if it wasn't going to clear. That's it any shortened down version but if I have to provide you with it I will as well. I need this corrected right now.

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