Consumer complaint received 2023-01-04
Company: UNITED SERVICES AUTOMOBILE ASSOCIATION
State: HI
Product: Debt collection
Sub-product: Other debt
Issue: Took or threatened to take negative or legal action
Sub-issue: Sued you without properly notifying you of lawsuit

Complaint:
Per my previous CFPB complaint, I would like to rescind XXXX as I did not discover enough information to make a proper complaint. 

Based on discovery of relevant information to the inquiry from speaking to XXXX at USAA Automobile Coverage, I believe I now know enough information about this issue to presently re-submit another inquiry. 

I believe USAA has cancelled USAA Automobile Coverage Policy # XXXX XXXX XXXX ( XXXX XXXX ) based upon an unreasonable circumstance. I was informed the policy was officially cancelled because a discounted service that tracks vehicle movememt was not complied with and because that discount no longer applied and the insurance company was not able to collect around {$12.00}, the entire policy was cancelled and the difference was refunded to me in the mail. I have not yet received the refund for the duration of coverage. 

When I initially established the policy, I remember establishing auto-renewal/ auto-pay to pay from an external checking account when the policy would expire. I prepaid the policy in full to cover 6 months of coverage. I would have expected such a small amount to be deducted during active coverage and I could have contacted the insurance company then and established understanding. The company did not bill the bank account. They sent one written notice of cancellation that must have been easily overlooked due to it being around {$12.00}. Apparently, I was also sent emails, but they may have been categorized as spam. 

I am rated as XXXX  and totally XXXX by the XXXX  XXXX XXXX XXXX, yet they now indebted me with no possible repayment option first to the remaining balance of this policy as the policy has been canceled. Additionally, I must now pay the remaining balance of this policy and the next policy in full before starting coverage again. 

The fact is that the insurance company and USAA in general makes darastic decisions over small monetary amounts that could potentially devastate peoples ' lives through many of their services and products. They provide no recourse or remediation. 

Should I have been in an accident, which I was not, devastating consequences would have occured with no financial recourse for myself, my XXXX  wife, or my XXXX small children. USAA made me look like a criminal who did not abide by XXXX XXXX Laws by failing to provide actual motor insurance coverage. I personally had no idea coverage was cancelled until I read a notice of cancellation letter yesterday. At first, I thought USAA canceled the policy to cover a XXXX XXXX credit card debt. After discovery, I found that it had not been due to that, but rather this issue over one of the discounts. 

When enrolling, I notice USAA pre-selects the option for the " safe driver pilot program ''. If they are pre-selecting options, USAA should not allow for such a vague process if one fails to download the application and have his driving movements to be tracked. This seems unconstitutional to place this as an option for a pre-selected discount and then have your whole policy cancelled should you fall out of compliance over small techinical issues and very small monetary matters. 

Until yesterday, I was not aware my policy was cancelled nor the actual reason. 

Again, should an accident have occured or I have been stopped by a law enforcement officer, the consequences would have been much more serious and darastic. 

USAA claims to serve the servicemember, yet they try to intentionally find loop holes in disclosure statements to punish servicemembers and veterans. 

USAA could care less under any circumstance of distress, damage or duress unless it complies with their established policies. They never usually make any exceptions.

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