Consumer complaint received 2019-05-21
Company: UNITED SERVICES AUTOMOBILE ASSOCIATION
State: CA
Product: Checking or savings account
Sub-product: Other banking product or service
Issue: Managing an account
Sub-issue: Problem making or receiving payments

Complaint:
On XX/XX/2019 I made a transaction of {$1000.00} through USAA using XXXX XXXX to an individual named XXXX XXXX XXXX ( at least that is the name XXXX XXXX gave me. It could be an alias ) whom I thought it was the Co-owner of a Condo I was supposed to " rent '' from and I thought at the time to be a trusted person. The other " owner '' an individual named XXXX XXXX ( again, it could be an alias ) whom I made the supposed " contract '' with and whom I had contact with, I also thought to be a trusted person. On XX/XX/2019 I made another transfer of {$700.00} through my bank using XXXX XXXX again to XXXX XXXX XXXX to complete the supposed deposit and first months rent for a total of {$1700.00}. 

In the supposed contract, one of the individuals mentioned above named XXXX XXXX and I had made an appointment for XX/XX/2019 for him to hand over the keys to the condo so that I could move in on XX/XX/2019. Time of supposed appointment was for XXXX on that day ( XX/XX/2019 ). When I got to the condo shortly before XXXX on the morning of XX/XX/2019. I waited for at least 40 minutes and XXXX XXXX never showed up. I texted him, called him numerous times between XXXX and the 40 minutes that I waited and never received a response from XXXX XXXX . That's when I realized that I had been scammed. I called USAA shortly after and reported a claim of fraud. On XX/XX/2019, my bank sent me a letter telling me that the claim was being denied because they concluded that there was no fraud made, and that no further action will be taken. 

I contacted USAA for a second time on XX/XX/2019 to ask how is it that the bank came to the conclusion of no fraud being committed. I was transferred to a representative named XXXX ( do not recall her last name ). She explained that because I made and authorize the transaction, the investigative only looked at whether I had made the transaction or not. After giving her all the background of what has occurred, the other thing that she suggested that she could do was to submit the case as a dispute rather than a fraud. So, she submitted a claim on my behalf on XX/XX/2019. Ten day later, on XX/XX/2019 USAA sent me an email saying the following : We've completed our investigation and determined an error did not occur for the following reason : XXXX is a personal money transfer service and does not provide purchase protection. The transfer was completed as requested and any dispute must be resolved with the user to whom you sent money to. 

How is it that an institution such as USAA whom I have had many years of trust and confidence, provides a service that does not provide any protection what so ever to its customers? And turns around and wash their hands in the face of criminals using the very service that they provide as a safe option to their customers to transfer money leaving many victims of fraud fend for their selves without any back up from their bank institution.

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