Consumer complaint received 2019-04-18
Company: UNITED SERVICES AUTOMOBILE ASSOCIATION
State: TX
Product: Money transfer, virtual currency, or money service
Sub-product: Traveler's check or cashier's check
Issue: Problem with customer service

Complaint:
In XX/XX/XXXX, I requested a cashier 's certified check from USAA via their phone-in service. The check was for {$15000.00} to repay my previous employer ( XXXX ) for payroll overpayment. The USAA member service representative ( MSR ) on the phone indicated they had a service that would send the check on my behalf directly to XXXX from USAA. I asked to use this service. Time was of the essence and the MSR indicated this would make it. In XX/XX/XXXX, I received a cashier 's certified check from USAA in the amount of {$15000.00}. The check had been returned to USAA by XXXX because the USAA MSR failed to list my name on the check prior to sending it. As a result, XXXX could not apply it to my account. Also, because of USAA 's error, XXXX indicated I would incur a cross-year tax penalty in the amount of {$5800.00}. Because the check, with no personal information included, wasn't able to be applied. Therefore, the {$5800.00} would be due, in addition to the {$15000.00}. I contacted XXXX  and the IRS to confirm this was correct. Later, I contacted USAA to request redress, since the error was committed by their MSR, and it caused a {$5800.00} tax bill. After initially saying they would help if I sent them the information, they subsequently failed to resolve the issue. Either the MSRs didn't document the issue or they failed to document it correctly or their process was broken. So, I had to repeatedly call and re-explain. It was as if they didn't have a standard complaint resolution process, or it wasn't understood by their team. This went on for months. I finally spoke to an MSR who documented everything. Unfortunately, USAA accepted no-fault, and I asked to elevate my concern to the CEO 's office for resolution. After a lengthy period, with weeks of long lapses between follow-up from USAA, an employee called to say USAA was not at fault and would not provide redress. Essentially the employee said it was my fault because I didn't tell them to list my name on the cashier 's certified check that they made for me, although their service is marketed as a process that sends it on behalf of the account holder. The initial MSR, in XX/XX/XXXX, never said I needed to ask to have my name on the check. If she would've said it was needed, I would've asked her to include it. She was put forth by USAA as a banking professional, I'm just the customer. I trusted her to know what should and should not be done and explain the difference. Also, I find it hard to believe that any financial institution or competent banker would ever send a check to a company on behalf of their account holder from their personal account, without including their personal information as the payor. Which is basically what happened. I tried to explain this to the resolution person in the CEO 's office, to no avail. She simply indicated I should've told them that I wanted to use their service to send a check on my behalf but then also remind them to say it was on my behalf. She intimated the error was mine. I asked to speak to a supervisor and she said I could not because she was the final decision maker. A few weeks later I went to the bank, at the main campus, to withdraw my savings. I requested a cashier 's certified check. To my surprise, when I received the check, it looked almost exactly like the one I requested back in XXXX, except it automatically had my name listed ( re : XXXX XXXX ). My name was not in the memo section, and I didn't have to request it be listed at all. I asked the cashier if names were automatically listed and she said they always list the name of the requestor. It didn't matter if I was in-person or on the phone. She said the requestor never has to ask for it because they know it's for the requestor and on their behalf. Again, according to her, I'm not required to request it. I asked how long she worked at USAA and she said two years. It has always been that way. This is the opposite of what the resolution specialist in the CEO 's office told me weeks prior when examining my case and rejecting my request. This issue has been going on for over a year now. Please help.

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