Consumer complaint received 2020-11-15
Company: UNITED SERVICES AUTOMOBILE ASSOCIATION
State: GA
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Problem with a purchase shown on your statement
Sub-issue: Card was charged for something you did not purchase with the card

Complaint:
I have been using USAA auto insurance for over 15 years. On XX/XX/XXXX, in the late evening, I received an email alert from XXXX XXXX informing me your card was declined : its expired further stating, Hi there, A recent purchase was declined because you or someone on your account used an expired card. Its time to use your new card and shred or return that old plastic. Then you can retry your purchase, if needed. 

To be clear, the card referenced above expired in XX/XX/XXXX, and I shredded that card immediately after receiving one replacement card that does not expire anytime soon. I do not have any additional users, duplicate cards, or lost/stolen cards. I am aware of skimming/cloning credit cards so I immediately called XXXX XXXX and was informed that I should instead contact my insurance company ( USAA XXXX since someone from there attempted to use an expired card. XXXX  XXXX stated, their system showed, someone from USAA tried to utilize it but the PIN was flagged. 

It was after hours, therefore on XX/XX/XXXX, I called USAA, as well as checked my online account. I discovered the card on file for monthly insurance automatic payments was indeed the expired XXXX XX/XX/XXXX XXXX credit card. I have XXXX XXXX looking into how USAA for the at least 8 months has requested and cleared payment. 
My issue and concerns with USAA are that, an attempt to submit a second charge for the same service that posted approximately one week earlier. I want to know why USAA attempted to submit a new charge, as well as, why did someone attempt to do so using an expired card? This charge is suspect to me because even though USAA was wrong for resubmitting a second charge for the same service, it is concerning because to my knowledge, never before has a previous card been double charged. 

The disconnect Im having while trying to understand and eliminate a fraud attempt ( as I expect someone to point out the expired card was used because it was the card on file ) ; and to that, I would like them to explain, why then was the expired card not attempted to be charged since XX/XX/XXXX? Month after month USAA got it right in correctly charging my credit card, despite what was on file, including days prior of this incident. Therefore, I would like to know where within USAA did the second charge stem from, for what reason, and finally why was the charge {$1.00} versus an actual amount of what was supposedly due? This is why I perceive the charge as a fraud attempt. 
I was assured by a USAA representative that USAA did not participate in an un-named program with XXXX  XXXX that automatically updated expired credit cards on auto pay ; and USAA did not subsequently end such agreement conveniently days after my last payment posted. Even if a program existed, why did USAA not automatically update it in my profile as described? Having access to current info, again, why would USAA run the out of date information? These questions are relevant as XXXX XXXX stated they have a program with some companies that does this and suggested USAA may be one, however, that policy only applies to lost/stolen cards which my card is neither. 

USAA rep stated they do not require security codes for reoccurring charges, only card number and expiration date, so in all fairness, the charges should have been declined in XXXX or until I updated the expiration date in their system. I suspect USAA fraud in some form as the charge declined was {$1.00}, and that could easily be 'a test ' to see if the card is still working. Thank you.

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