Consumer complaint received 2019-07-19
Company: UNITED SERVICES AUTOMOBILE ASSOCIATION
State: TX
Product: Checking or savings account
Sub-product: Other banking product or service
Issue: Managing an account
Sub-issue: Problem accessing account

Complaint:
XX/XX/2019 Customer : XXXX XXXX XXXX CR XXXX XXXX XXXX, Texas XXXX USAA Customer # XXXX Company : USAA XXXX XXXX XXXX XXXX XXXX, TX ( XXXX ) XXXX Complaint : On XX/XX/2019 I received a letter from USAA indicating that I had a late payment on my auto insurance. I was threatened that if I submitted another late payment I would not have access to my accounts ( checking, savings, policy, products, etc. ). In addition, I would not have access to additional services and/or products from USAA. My payment was made within the grace period, and my insurance has never been cancelled due to non-payment in 28 years. 

On XX/XX/2019 I called USAA to inform them that I made all auto insurance payments within the due dates and/or grace periods. My insurance has never been cancelled or reinstated in the 28 years I have been banking with USAA. The employee confirmed that my insurance has never been cancelled and all payments have been received within the time dates and/or grace periods allowed. 

1 ) I received a threatening letter indicating that future late payments would result in punitive actions such as no access to accounts, policy 's, and/or products.

2 ) USAA does not specifically stipulate what is considered as a punitive payment time period. When is a payment considered late with punitive measures ( no access to accounts and/or products )?

3 ) Is a payment beyond the grace period, such as a cancellation of auto policy equal no access to accounts, products and services ; and deem that a customer does not have access to their checking/savings accounts or USAA products?

4 ) Is a late payment within the grace period still terms for cancellation of auto policy, no access to accounts, products and services ; and deem that a customer does not have access to their checking/savings accounts or USAA products?

The attached letter from USAA was offensive. My payments have always been made within the payment date and/or grace period of payment. If USAA is going to submit such offensive, threatening, oppressive, and harassing letters ; it is important that USAA clearly defines such punitive measures to their customers.

Resolution : Without retaliation upon this customer, USAA needs to define punitive measures and at what point punitive action will be taken. Further, do these punitive measures follow the state law and regulations with the FDIC, State Board of Insurance, and the Consumer Financial Bureau? Are punitive measures fair  practices or discriminatory practices? Is it fair to ban a customer from an insurance policy or cancel a policy, lose access to checking and savings accounts, lose access to usaa.com, lose access to automated voice response system, and unable to acquire new products and services on the basis that the customer is late, however has made payments within USAAs stipulated grace period? 

It seems that left undefined by USAA is discriminatory to the customer, especially if the customer has paid within the grace period criteria and the customer has never received a cancelation in a purchased policy. 

I do believe USAA needs guidance in defining punitive customer exclusionary practices and measures. This should be approached without retaliatory measures to the customer. After complaining on XX/XX/2019 at approximately XXXX my account was locked and I have no access to my accounts. This seems a bit suppressive, oppressive, and discriminatory to the customer. I would like it resolved promptly. 


XXXX, XXXX XXXX USAA Customer # XXXX

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