Consumer complaint received 2019-05-01
Company: UNITED SERVICES AUTOMOBILE ASSOCIATION
State: TX
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Other features, terms, or problems
Sub-issue: Other problem

Complaint:
XX/XX/XXXX, I submitted {$250.00} with my application for a " USAA Secured Card Platinum Visa card. '' The card was received with a letter stating " ... more ways your card is working for you : -- helping you build/rebuild your credit. '' My credit limit is {$250.00}. The CD matures XX/XX/XXXX. 

XX/XX/XXXX, I rang USAA, and spoke with " XXXX. '' She informed me that " closing the CD would close my credit card. '' XX/XX/XXXX, I received a letter from USAA stating " your CD ... will soon mature. If no action is taken, your account will automatically renew in a CD with a similar term. '' XX/XX/XXXX, I rang USAA, and spoke with " XXXX. '' He restated what " XXXX '' had previously said. I was then transferred to " XXXX '', who was *supposed* to be a " credit card specialist. '' In fact, " XXXX '' is in the " new accounts '' department. She stated that there is no procedure whereby my account could be " graduated '' OR " converted '' to an " unsecured card. '' Furthermore, my {$250.00} CD will be applied directly to the outstanding balance. It is worth noting that the cumulative amount of interest paid on my CD ( as of XX/XX/XXXX ) = {$2.00}!!! 

My payments have been made on a timely basis, automatically withdrawn from the same checking account, are usually above the minimum amount, and my balance has NOT exceeded {$250.00}. Closing my account will negatively impact my credit score -- contrary to the very reason I opened the account in the first place!!! 

In contrast ( XX/XX/XXXX ), I submitted {$150.00} with my application for a " XXXX XXXX Secured MasterCard '', and a credit line of {$200.00}. XX/XX/XXXX, I was notified that my credit line had been INCREASED to {$600.00}. I rang XXXX XXXX, to confirm that a mistake hadn't been made. I was informed that they proactively review accounts, my account was " in good standing '' and my payment history justified the increase. 

Upon receipt of the notification from USAA, I once again rang XXXX XXXX. " XXXX ' '' informed me that the CD security is held for the " life of my card. '' However, XXXX XXXX ALSO proactively reviews accounts, my account *can be* " upgraded '', and the CD released to me. 

Had I been advised that my {$250.00} would be held indefinitely, I would NEVER have opened an account with USAA. Furthermore, 2 years is most certainly sufficient time for USAA to recognize my credit " worthiness. '' Indeed, XXXX XXXX made such a decision after only 6 months!!! 

USAA is, once again, engaging in unconscionable predatory practices. Reference prior CFPB complaint XXXX, wherein a " defender hold '' was placed on my payment for 10 days, and I was accused of " money laundering. '' I have been a USAA member for 29 years, and am currently facing a lose-lose proposition. My credit rating will be irreparably damaged. 

USAA 's ( current ) slogan is " good enough is NOT good enough. '' Indeed, USAA is NOT EVEN " good. ''

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