Consumer complaint received 2017-10-27
Company: UNITED SERVICES AUTOMOBILE ASSOCIATION
State: TN
Product: Checking or savings account
Sub-product: Checking account
Issue: Closing an account
Sub-issue: Company closed your account

Complaint:
I have discussed this issue at length with USAA. I was told on XXXX XXXX that they would review the closure of my account and that I would hear a decision within 3-5 business days - but today is business day 10 with no word from USAA, and my account is scheduled to be closed tomorrow, so I do n't know what else to do other than to file a CFPB complaint and hope that that compels USAA to do the right thing. 

The story : I have had a checking and savings account with USAA for about 1.5 years. In addition to using it for my direct deposits, I also used the checking account for credit card rewards churning. Put very briefly, this means that I bought XXXX gift cards with my credit card ( to earn the rewards points ), used the XXXX gift cards to purchase money orders, deposited the money orders in my USAA checking account, and then paid off the credit card bill with my USAA checking account - this process generates credit card rewards. 

Shortly after opening my account, I got a call from USAA ( from XXXX, phone number XXXX ) to verify that the activity on the account was legitimate. I explained the process in detail to XXXX, and she said that it was not a problem to use the account in this way. So, I continued to do so for 1.5 years without any issue. 

Then, on the evening of XXXX XXXX, I received a voicemail from XXXX asking me to call her about my USAA account. I did that on XXXX XXXX, and she said that USAA had changed their policy on using their accounts for credit card rewards churning and asked me to stop. She explicitly said my accounts would be fine as long as I stopped using them for credit card rewards churning. I responded that that was no problem, and that I would stop using my accounts for credit card rewards churning immediately, and I did so - USAA can verify that there were no more money order deposits in my account after XXXX XXXX. 

I then left the country for a couple weeks on vacation. When I returned, I was extremely surprised to find a letter waiting for me ( dated XXXX XXXX, and attached to this complaint ) stating that my USAA accounts would be closed on XXXX XXXX, since XXXX had specifically told me that would n't happen. 

I immediately called USAA ( on XXXX XXXX ) and talked to a banking supervisor ( I did not think to write down her name ) and explained all of the above to her and asked her to submit the closure of my accounts for review to have the closure overturned, seeing as how I only ever used the account in ways that USAA explicitly said was allowed, and that I complied with USAA 's requests in regards to how to use the account. The supervisor said she would submit the request and that I should hear back ( via mail ) in 3-5 business days as to the results of the request. 

I was further shocked when, on Monday, XXXX XXXX ( perhaps earlier, but Monday was the first time I noticed it ) when I logged into my USAA account and found the funds in my accounts frozen. This caused me further problems because I had payments scheduled to be paid out of the account that week ( that could n't be stopped - I called my credit card companies to ask them to stop the payments, but the payments had already been batched out ), but those payments were denied due to the account being frozen. I called USAA on XXXX XXXX to ask if my funds could be unfrozen ( the answer was no ), since the letter I received about the account closure only says that my accounts would be closed on XXXX XXXX - the letter says nothing about the funds in my account being frozen for two weeks prior to the account closure, which has now caused me significant cash flow problems. Though the supervisor I spoke to on XXXX XXXX ( I did n't write down her name either ) was apologetic and said she 'd take my concerns to management, she said there was nothing she could do at this point, and that I would just have to wait for the results of the account review. 

I have tried to be patient and wait for the account review and survive without access to my frozen funds, but seeing as how it has now been 10 business days ( instead of 3-5 as promised ) and USAA still has not contacted me, I do n't know what to do other than file a CFPB complaint to try to get this situation resolved.

Company public response: Company believes complaint is the result of an isolated error
Company response to consumer: Closed with explanation