Consumer complaint received 2023-03-17
Company: UNITED SERVICES AUTOMOBILE ASSOCIATION
State: TX
Product: Checking or savings account
Sub-product: Checking account
Issue: Managing an account
Sub-issue: Problem using a debit or ATM card

Complaint:
I am requesting a formal investigation into how USAA handles disputed transactions. I disputed a transaction in XX/XX/XXXX. This transaction involved a cleaning service that I used regularly. This particular service was for a move-out clean which includes many services which I outlined in the dispute. I provided pictures of items that were not cleaned and I spent 6 hours myself cleaning as much as I could. When you use this service, you do so to leave the apartment in good standing, but also to avoid a cleaning fee billed by the apartment complex. I also provided the emails and text messages that I sent to the merchant advising of their error that were never responded to. I was still charged the cleaning fee from the apartment complex which reiterates the apartment was not cleaned and services I paid for were incomplete. I provided that as well. 

In XXXX, I received a letter from USAA requesting more information. Specifically when I asked the merchant for a credit. The merchant failed to respond to any of my correspondence ; however, asking for a credit or refund is not a requirement of the dispute process. In any regard, I reached out to a USAA rep who advised that I needed to type everything out in a document ( tell the story ) and put it in a way that an elementary student could understand it if reading it. I did just that and sent it over to USAA. 

In XXXX, I received an identical letter requesting the exact same information as if I had not already provided this information twice. At that point, I decided it was time to file a complaint with the Office of the Comptroller 's office. They referred me to CFPB. 

On XX/XX/XXXX, I received another letter from USAA advising that my dispute was not approved and in this letter, they stated that they did a thorough investigation and found there was no error. This couldn't be further from the truth. After receiving the letter, I reached out again to the merchant using the same email address and text contact. This morning ( XX/XX/XXXX ) I received a call from XXXX ( owner ) who stated that they completely dropped the ball on this one and that I did not have to pay for services. XXXX went on to state that she was aware of the dispute and that they intentionally didn't argue the dispute because they wanted me to get my money back. Their failure to respond to my initial complaint was due to their systems going down for their email server. They missed the text message as well. Because it was a move-out, they were out of time to send anyone back out since I no longer had access to the apartment and she confirmed that no one from USAA reached out or they would've advised to refund. That doesn't sound like a thorough investigation. 

This is not the first time USAA has denied a valid dispute. I disputed fraudulent activity in XXXX of XXXX in the amount of {$320.00}. I again documented everything and sent it in, and they protected my scammer despite my reporting it to the police and advising who it was. 

Prior to that in XXXX, I disputed an ACH payment to XXXX because I no longer had the vehicle the payment was for and the company violated our payment agreement. They found some random reason to deny that ; therefore, I submitted a car payment for a car that I no longer owned which was over {$700.00}. 

USAA is comfortable allowing their members to pay for services they did not receive. They are comfortable violating our rights when it comes to fraud. They are comfortable not really doing an investigation but claiming that they did. There is something truly wrong here and they are not complying with the VISA requirements as it pertains to disputes ad upholding the protections we are provided when we experience fraud or do not receive the services that we paid for. 

I believe that USAA has implemented its own risk measures which make it difficult for members to successfully utilize their right to dispute transactions. I believe these additional layers include a threshold -- meaning if it's over a certain dollar amount, they will deny the dispute. Or if the likelihood of them getting the funds back from the merchant after providing a temporary credit is low, they deny it. That is their investigation, not actually reaching out to the merchant to get their side of the story. Now, this is all speculation ; however, when I've disputed items under {$100.00} or so, I haven't had any issues. I won't even start on my rental claim that they have completely tried everything to not pay and in order to find out the status I have to reach out. This has been open since XXXX as well. I will report that one to the Department of Insurance.

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