Consumer complaint received 2022-07-15
Company: UNITED SERVICES AUTOMOBILE ASSOCIATION
State: MA
Product: Checking or savings account
Sub-product: Checking account
Issue: Problem with a lender or other company charging your account
Sub-issue: Transaction was not authorized

Complaint:
I previously submitted a complaint to the CFPB ( # XXXX ) regarding USAA 's XXXX of my notice of an unauthorized transaction error on my account. This original complaint is attached to this complaint. USAA did not properly respond to my original complaint. 

USAA exceeded the CFPB 's complaint handling timeframes, and their eventual response did not actually address the complaint it merely indicated that they had " initiated another review, '' which was never, in fact, completed. They further stated in the response that they are We are currently researching to ensure that the correct resolution is provided to you. Our Bank XXXX XXXX team will contact you with additional details. '' However, USAA never responded and completed the review. 

I called on XX/XX/XXXX, and spoke to staff of the XXXX XXXX team, who confirmed that they had identified a criminal who processed the unauthorized transactions on my account. This staff member stated that they would submit an affidavit for further review, and that a resolution would be a refund by priority mail checks from USAA, by XX/XX/XXXX. On XX/XX/XXXX, I called again and was told that there was " no update '' and the " account is still being investigated. USAA failed to complete any of the steps it promised to do, including those required by Reg. E to provide an investigation of the unauthorized transaction, despite my multiple attempts to call and work with them, and despite submitting my original complaint through the CFPB. 

It is particularly concerning that USAA has not addressed my rights under the Electronic Fund Transfer Act and Regulation E, which were explicitly explained in my original complaint. Under Reg E, I am not liable for unauthorized transfers on my account which are timely reported. I reported the fraud within a few days of the occurrence. In an initial response to me, USAA indicated that i was liable because i had participated in a phone call where the criminal fraudulently obtained access to my account. As i stated in my original complaint, Regulation E is clear that USAA is required to limit my liability for this transaction under these circumstances. 

Regulation E is extremely clear that A TRANSACTION IS UNAUTHORIZED EVEN IF A CONSUMER PROVIDES AN ACCESS DEVICE TO A FRAUDSTER, IF THE ACCESS DEVICE WAS PROCURED THROUGH FRAUD. See 12 CFR 1005.2 ( m ), Comment XXXX ( An unauthorized EFT includes a transfer initiated by a person who obtained the access device from the consumer through fraud or robbery ). Here, the passcode was clearly procured by fraud because a fraudster lied and posed as USAA, and told me I could not get help with my account unless I gave them a passcode, and subsequently engaged in a fraudulent takeover of my account. Since the passcode was procured by fraud, it is an unauthorized transaction. In addition, even if USAA finds that i was in some way negligent while being defrauded by the criminal, consumer negligence is not a reason to hold a consumer liable for an unauthorized transaction. See comment 2 to 12 CFR 1005.6 ( b ). Therefore, USAA can not hold me liable under 12 CFR 1005.6 and is legally obligated to refund my account for the unauthorized transactions and associated fees within 1 Business Day, pursuant to 12 CFR 1005.11.

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