Consumer complaint received 2020-09-15
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — 
Company: UNITED SERVICES AUTOMOBILE ASSOCIATION (WA)

This complaint is in conjunction with a previous successful complaint filed against USAA violated the Electronic Fund Transfer Act and Regulation E by failing to properly honor consumers stop payment requests on preauthorized electronic fund transfers, and by failing to initiate and complete reasonable error resolution investigations ( XXXX XX/XX/XXXX ). USAA also violated the Consumer Financial Protection Act of  2010. 
On XXXX XX/XX/XXXX I received a delinquent tax notice for my property taxes. I contacted my mortgage company. I sent the notice via PDF to the mortgage company. I was advised that the escrow account that is maintained by my mortgage company was established for the purpose of paying the property taxes and the homeowners insurance. At the time in order to be able to satisfy the complete tax bill of {$1400.00}, I would transfer {$250.00} to my escrow account. I was informed that the person on the Escalation Team ( XXXX ) would get back with me to provide feedback on the XXXX of XXXX. XXXX did not call on the XXXX. On the XXXX of XXXX I went online with the XXXX County Treasures office to pay my taxes ( to include penalties ) using my credit card. On the XXXX of XXXX XXXX did call. I informed her that since she did not return my call on the XXXX I went ahead and paid the entire tax bill until XX/XX/XXXX. We discussed the transaction and I sent her invoices clearly depicting that I had in fact paid the tax bill. I was told by XXXX that she would be reaching out to the Tx Team to ensure that no money was to be taken out of my escrow account to pay taxes and that she would look into getting me a refund. I was promised again XXXX would provide follow up/feedback on XXXX XXXX. 
The morning of XX/XX/XXXX I contacted XXXX XXXX and spoke with a person by the name of XXXX. He informed me that XXXX had a call back scheduled for XXXX XXXX that day. I asked to make sure XXXX was in and I was told she was. At XXXX I called XXXX and requested to speak with XXXX. I was subsequently placed on hold for 5 minutes. I was told that the receptionist was trying to get a hold of XXXX or a manager. After another 5 minutes of being on hold, I was told that neither XXXX or any of the other managers were available at this time. 
Supporting this complaint is the assertion that USAA has failed to provide any legitimate documentation six times requested by XXXX XXXX XXXX supporting the statement that USAA has paid fines/penalties in the matter of the mortgage for property at XXXX XXXX XXXX XXXX XXXX WA, XXXX. Mr. XXXX had initially requested documentation for receipts, invoices, or any other valid proof of payment that USAA had made from Mr. XXXX XXXX XXXX escrow account beginning from the date XXXX XX/XX/XXXX. Failure to provide documentation is tantamount to Misappropriation of Funds. When prosecutors bring a charge of misappropriation, they must convince a judge or jury that the following happened or is true : Control but not ownership. The prosecutor must show that the owner of the property, whether it's a person ( Mr. XXXX XXXX ), organization, or group, entrusted or gave the money to the defendant ( USAAXXXX. XXXX ), or otherwise allowed the defendant control over it. In short, the defendant rightfully had possession, but not ownership. 
Intent. First, a person must knowingly misappropriate the money, and can not commit the crime by making a mistake or error. A person who misappropriates funds doesn't have to intend to actually physically take the money. It can be enough for a prosecutor to show that the accused intended to take any action that results ( or would likely result ) in the misappropriation of funds. In some states, the accused must know the  action is illegal ; while in others, the accused only has to act intentionally and does not need to know that the conduct is criminal. 
Conversion. In order to commit misappropriation of funds, a person must not only take the money but must use it for his own purposes. However, this doesn't require that the accused actually take the money and use it to buy something or otherwise spend it. Courts have held it's enough to transfer the money to a bank account or even to refuse or fail to hand over the owner 's money when the owner demands it. 
Return. A person who misappropriates funds with the intent to later return the money to the rightful owner is still guilty of misappropriation. It also doesn't matter if the misappropriation only lasted for a short amount of time In attached letters USAA has asserted that : USAA contacted XXXX County Treasurers Office and were informed of the delinquent tax notice ( repudiated by previous USAA letters ) USAA asserts they have paid fines/penalties. Several requests for documentation have been made on several dates. The following are a list of responses : 1 ) We are referring this to our Tax Team and when we have the documentation, we will forward it to you 2 ) RESPA states that USAA has to provide a response to you within 30 days 3 ) USAA utilizes a third-party contractor ( no name provided ) 4 ) XXXX County has not processed the payment sent 5 ) It can take up to 30 days for XXXX County to process said payment 6 ) The payment is lost in the mail 7 ) I can request a refund from XXXX County Treasurers Office On XXXX XXXX I received a PDF letter from USAA mortgage in response to my inquiry dated XXXX XX/XX/XXXX. In this letter USAA acknowledges that I made initial contact with them via e-mail notifying them of the delinquent tax notice. On XXXX XX/XX/XXXX I received a PDF letter from USAA clearly stating that USAA had made initial contact with XXXX County Treasurers Office to find out about the delinquent tax notice. USAA further asserts that they had paid the penalty for late taxes. This assertion is as well false as the property taxes and the penalty were paid with my credit card. 

It is very difficult to sort through the excuses and partial truths USAA has offered up. Documentation ( or lack thereof ) leans toward the hypothesis that no funds were sent to a third-party contractor or XXXX County Treasurers office, and yet {$700.00} was stolen from Mr. XXXX XXXX XXXX escrow account, alleging misappropriation of funds/fraud. RESPA Real Estate Settlement Procedures Act. The Act requires lenders, mortgage brokers, or servicers of home loans to provide borrowers with pertinent and timely disclosures regarding the nature and costs of the real estate settlement process. The Act also prohibits specific practices, such as kickbacks, and places limitations upon the use of escrow accounts. USAA has failed in every aspect of these laws. They have failed to provide legitimate documentation in the form of receipts, cancelled checks, wire transfer or electronic funds transfer. They have however, failed to refund me {$1600.00} due to me. They have claimed that they paid a third-party contractor to pay {$700.00} in property taxes without providing the third-party contractors  name. They further assert that the money was paid to XXXX County Treasurers Office. The XXXX County Treasurers Office has been contacted an no payment has been received. USAA claimed that they paid the taxes on the XXXX of XXXX and that it is XXXX County Treasurers Office that is slow and inept in processing the payment. 

USAA was already found guilty on XXXX XX/XX/XXXX of failing to complete reasonable error resolution investigations.