Consumer complaint received 2015-11-28
Company: UNITED SERVICES AUTOMOBILE ASSOCIATION
State: WA
Product: Credit card
Issue: Other

Complaint:
I opened the Secured Platinum Visa with USAA in XXXX 2015. This credit card was secured with the purchase of a {$1500.00} 2-year CD issued by USAA. 

I made a payment of {$1000.00} XX/XX/XXXX with no issues. I made a second payment of {$500.00}, which bounced. I was not informed of the payment being returned. When I became aware of the bounced payment, I noticed ( to my horror ) that the payment had been taken from a XXXX XXXX account that I had had to close due to fraudulent activity. I logged in to my USAA account and verified that in the drop down box that while the name of the account read " family XXXX '' the bank account information had defaulted back to the old bank account number. I re-added the new XXXX bank account information on XX/XX/XXXX and using the new XXXX bank account information, I made a payment of {$800.00}. Which bounced. 

Again, USAA had attempted to take money from the old bank account even though I had updated my bank account information. I spoke with a USAA agent who informed me they had fixed the problem. I made a payment of {$500.00} ... and, you guessed it, it bounced. 

I believe that as a result of these errors, my payments are now being frozen for EIGHT DAYS. While I appreciate the sentiment that my payments may be suspect, I also believe firmly that the errors lie on the plate of USAA, not me. I went through the mechanics of verifying an outside bank account, per their recommendation, only to have payments bounce again. To add insult to injury, I was charged a bounced payment fee, which put the account over the credit limit, which was reported to credit agencies, which knocked XXXX points of my credit score. 

So now, every time I make a payment, USAA is " holding '' the payment for EIGHT DAYS ... rendering the card useless. I made three payments successfully in XX/XX/XXXX and yet was unable to use the card from XX/XX/XXXX XXXX through XX/XX/XXXX XXXX. The eight day hold is in violation of the stated terms of the account which says : " payments much be made in US dollars and draw on funds on deposit at financial institutions insured by the FDIC. Payments received by XXXX central time will be credited as of the same day if the payment is in US dollars. " Repeated phone calls to USAA have only muddied the waters. The reps have stated that my payments of {$150.00} and {$300.00} were " too small to count. '' One rep said that if I made a " serious payment '' of {$900.00} that the freezing-of-payment would stop. When I made a {$900.00} payment on XX/XX/XXXX XXXX, that payment was frozen until XX/XX/XXXX XXXX. 

While I did receive an email and phone call from XXXX in the office of the USAA president expressing her desire to resolve this situation, I have been unable to speak with her due to both time zone issues ( they are based in XXXX XXXX ) and my current work schedule at XXXX. 

It has been a consumer nightmare, frankly. 

Perhaps it is my XXXX background at play, but I am also most fascinated with the underlying balance sheet aspect of this issue. For over one week, that {$900.00} payment was in limbo. I was n't allowed to use it ( since the card was frozen ), so the {$900.00} was n't in my possession. Does that mean, then, that USAA can utilize that {$900.00} to their benefit while it is in limbo? If so, then how does that go on their balance sheet? Just curious. 

I am attaching a copy of my account statement that shows the problem in black and white. As of XXXX/XXXX/2015, USAA shows, on a statement, that I have a balance of {$83.00}, available credit of {$1300.00}. And yet, in reality, I was unable to use my card until XX/XX/XXXX. 

At the end of the day, though, USAA is in violation of the terms of this credit card and their bald, repeated refusals to explain to me why that is and how much longer they plan on keeping up this violation ... their refusal to provide clarity is both frustrating and bordering on malicious.

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