Consumer complaint received 2017-08-21
Company: UNITED SERVICES AUTOMOBILE ASSOCIATION
State: TX
Product: Checking or savings account
Sub-product: Checking account
Issue: Closing an account
Sub-issue: Company closed your account

Complaint:
This is a response to USAA 's explanation of CFPB complaint XXXX which they closed and seemed to gloss over a few things. USAA 's response was dated XX/XX/XXXX.
In their response USAA states the following : '' Our records show that in XX/XX/XXXX you reported XXXX unauthorized transactions between your two credit card accounts. You advised you were a victim of identity theft, fraud cases were opened, and provisional credits were applied to your accounts. In XX/XX/XXXX, your accounts were forwarded for review due to the history of reported fraud claims. Our review determined that the charges from XX/XX/XXXX were valid, and the charges were assessed back to your account. When fraud claims are filed for unauthorized charges, USAA does not send letters stating that credits for the fraud charges are permanent ; a letter is only provided for credit card disputes, which are different than fraud. " 1. ) XXXX unauthorized transactions between your two credit card accounts I assume is correct as I am unable to view the account. However in the process of processing this fraud claim USAA re-entered the same claim 4+ times and is now stating I have a history of reporting unauthorized charges. This statement is in fact false. In this case it is USAA who has a history of erroring and submitting multiple fraud claims.
2. ) Stating credit card disputes are different from fraud is incorrect. FCBA applies : Billing errors that are covered by the FCBA include : Fraudulent or unauthorized use of your credit card, whether the card was stolen or the merchant charged unapproved items to your account. Charges that list the wrong date or amount. Charges for goods or services you either did not accept or that werent delivered as agreed. Math errors, such as being charged twice for a transaction.
Failure to post payments or other credits ( like returns ).
So An assertion that a transaction resulted from " unauthorized '' use of a credit card can be both a " defense '' and a billing error.
During the dispute. According to the FTC, you may withhold payment of the disputed amount ( and related charges ) during the investigation.
FCBA rules to remember : The card issuer may not take any legal or other action to collect the disputed amount and related charges ( including finance charges ) during the investigation.
While your account can not be closed or restricted, the disputed amount can be applied toward your credit limit. The card issuer also may not threaten your credit rating, report you as delinquent or restrict or close your account because your bill is in dispute or you have used your FCBA rights. However, they may report that you are challenging your bill. In addition, its against federal law for creditors to discriminate against credit applicants who exercise their rights in good faith under the FCBA.
USAA has restricted and closed my accounts as well as damaged my credit rating because my bill was in dispute. In fact, USAA stated the dispute was resolved while reporting damaging information the CRA 's in clear violation of FCBA. These actions have been direct discrimination against me for exercising my rights in good faith.
If it turns out that your bill contains a mistake, the creditor must explain, in writing, the corrections that will be made to your account. In addition to crediting your account, they must remove all finance charges, late fees, or other charges related to the error. Yet in USAA 's response to the original complaint they state they do not send out these required statements.
However, if the card issuers investigation determines that you owe part or all of the disputed amount, they must promptly provide you with a written explanation. You may request copies of documents proving you owe the money. At this point, youll owe the disputed amount, plus any accumulated finance charges. You also may have to pay the minimum amount you missed paying because of the dispute.I still have yet to receive any written explanation of how or why USAA determined I am responsible for the unauthorized charges. I have not received any documents relevant and used during the investigation by USAA despite many requests and FCBP laws requiring the creditor to provide them.
Finally any creditor who fails to follow the settlement procedure may not collect the amount in dispute, or any related finance charges, even if the bill turns out to be correct. For example, if a creditor acknowledges your complaint in 45 days 15 days too late or takes more than two billing cycles to resolve a dispute, the penalty applies. The penalty also applies if a creditor threatens to report or improperly reports your failure to pay during the dispute period. There have been numerous errors in following the settlement procedure by USAA, thus USAA has no right to collect any amount in dispute or finance charges.

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