Consumer complaint received 2017-11-28
Company: UNITED SERVICES AUTOMOBILE ASSOCIATION
State: IL
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Other features, terms, or problems
Sub-issue: Problem with balance transfer

Complaint:
On XX/XX/XXXX I telephoned USAAs Credit Card division for information about a balance transfer I had remembered receiving information about a 0 % interest on balance transfers through XX/XX/XXXX offer and wanted to take advantage of the offer to the tune of {$9400.00}. Because USAAs online transfer portal was down for a number of days, I ended up phoning to see if the offer was still available. I spoke with a woman who told me that the offer was indeed still available and explained the terms. initiated the transfer on the phone, knowing that I would incur a {$200.00} transfer fee and that the {$9400.00} would be interest-free for nearly two years. I received an email confirming USAAs receipt of the request that included instructions about how to access the terms and conditions of the transfer but not asking me to confirm/reconfirm anything. 

In XX/XX/XXXX, I noticed that I had incurred a balance transfer interest charge of {$82.00}. I paid the months bill but called on XX/XX/XXXX to inquire about that interest payment. The person I spoke with informed me that I actually had NOT made a balance transfer under such terms as had been described to me XX/XX/XXXX She said that I was charged interest on the transfer because the no-interest period would begin XX/XX/XXXX. I was very unhappy and promised myself that after XXXX I would write USAA to complain about this charge. 

On XX/XX/XXXX I received saw my credit card statement and found that this month I have a {$110.00} balance transfer interest charge. I called USAA to try to figure out what was going on and with an executive accounts specialist, XXXX ( employee # XXXX ). According to him, the product/offer of the balance transfer with 0 % interest had expired at the end of XX/XX/XXXX and that I had made my transfer after the closing date, thus in USAAs eyes I had made a regular balance transfer that would incur monthly interest payments just like any regular transfer made outside of the promotional periods. I attempted to explain to him that USAAs own representatives had on two different occasions told me that I had been eligible for these promotional rates. I explained that I never would have made the balance transfer under any circumstances outside of such a promotion. Obviously there would be no reason to pay {$200.00} to transfer a balance to a USAA card when the interest rates were no more favorable with USAA than with my other financial institution ( XXXX ). 

After much discussion, XXXX told me that USAA would not honor the initial transfer terms that had been described and sold to me on the phone by their own representative on XX/XX/XXXX, nor would they honor what the representative on XX/XX/XXXX had told me. The offer sold to me and that I in good faith accepted had never, as far as USAA was concerned, existed. According to XXXX, USAA does not maintain transcripts of telephone calls beyond a 30 day period so there was no proof of a bank error. I essentially was stuck with the {$200.00} transfer fee, {$190.00} in interest payments, and a balance transfer that will never enjoy the 0 % rates that I had signed up for in the first place. 

I can not believe that a financial institution can sell to a consumer a financial product thatby their own admissiondid not exist at the time and then refuse to help that consumer fix the consequences of their own mistake. It is clear I never would have made the balance transfer in the first place had there not been a promotional rate on offer and, as far as I could have possibly known at the time, there WAS such a promotion available. They refuse to take responsibility for promises made by their own representatives, on two different occasions. And now I am stuck with only bad options in terms of the fees and interest Ive already had to pay and will continue to have to pay whether I stay with USAA or transfer the balance elsewhere.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with non-monetary relief