Consumer complaint received 2024-06-26 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Problem with a company's investigation into an existing problem — Problem with personal statement of dispute
Company: UNITED SERVICES AUTOMOBILE ASSOCIATION
State: CA

Complaint narrative:
This complaint is in regard to the following companies : USAA Bank XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, TX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX PA XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, GA XXXX XXXX XXXX XXXX XXXX XXXX, TX XXXX Please note that your section, add another company for the complaint, did not allow me to submit the complaint as to XXXX. They also need to be included in this complaint process. 

In my statement below, I have Exhibits noted where I provided supporting documentation to all credit agencies who discussed my dispute with USAA Federal Savings Bank ( hereinafter USAA ). I disputed the late mark on my credit on XX/XX/XXXX with all credit bureau agencies. I could not directly discuss my issue with USAA because their agents state that there is no one to direct my call to and no one can discuss or fix the issue. I gave USAA the opportunity to fix the violation of Federal Law through the credit dispute process, but USAA chose not to fix the issue. Likewise, the credit bureaus did not correct the issue with the approximate 100 page submission I sent them documenting that Federal Law was violated. I was notified within the 30 days that my dispute was denied by all credit bureau agencies. Considering there was a violation of Federal Law, this should have automatically been corrected by the credit bureau agencies. Equifax said : " We verified that this item belongs to you. '' ( Exhibit 17 ) That was not the issue at all and I question how the investigation was conducted.

I am submitting this complaint against USAA for violation of The Fair Debt Collection Practices Act ( FDCPA ) which prohibits a debt collector from telling a credit reporting agency about a debt before either speaking to the consumer or sending a debt validation notice and ensuring it's delivered. USAA did not speak with me and I received no mail. USAA has no evidence anything was ever delivered to me because I was in the XXXX XXXX and could not receive mail. USAA has violated federal law by not providing me notice and an opportunity to correct the issue as documented herein.

Further based upon the facts I will provide herein, USAA is liable and I am submitting this complaint for Breach of Contract, Interference of Contract, Unfair or Deceptive Acts or Practices ( UDAP ) under Section 5 of the Federal Trade Commission Act ( FTC Act ) as well as Unfair, Deceptive, or Abusive Acts or Practices ( UDAAP ).

I am on on-line banker with USAA. ( Exhibit 3 ) All of my account information is sent to me via email in accordance with the USAA Online Agreement which has been breached by USAA. I have been XXXX to XXXX in the XXXX XXXX since XX/XX/XXXX. ( Exhibit 4 ) As of XX/XX/XXXX, I am back in the United States and can receive mail and phone calls. 

Prior to my departure from the XXXX, I informed USAA that I would be in the XXXX XXXX by completing their XXXX option on my online banking account. ( Exhibit 5 ) I additionally have a Power of Attorney on file with USAA to act on my behalf, which contains a valid phone number that is accessible for my account. ( Exhibit 6 ) I do not have cellular access in XXXX and wanted to ensure my account was properly flagged in the event something was needed. In addition, I can not receive vital pieces of mail to transitory locations in the XXXX XXXX. I have been moved several times due to security issues in the XXXX XXXX and there is no stable address. Mail is not readily accessible being on XXXX, which is why I have my account set for email notifications. ( Exhibit 7 ) In regard to the loan payment in issue in this case, I issued a payment on XX/XX/XXXX for {$8000.00} to pay a portion of the loan. ( Exhibit 8 ) I failed to note that the payment was to be applied to the principal. USAA subsequently stopped my automatic payments and scheduled the payments to resume in XXXX of XXXX. My intent was not to stop the monthly payments, however, I was not able to change that in talking with USAA after the fact. USAA would not apply the {$8000.00} to principal when I called to correct the issue. I never authorized USAA to stop my monthly payments. It was this act by USAA that caused the issue. Had USAA not shut down my automatic payments, payments would have still been coming out while in the XXXX and this would have never happened. This is also a violation of federal banking laws. 

Prior to the unauthorized stay on automatic payments being placed by USAA, my Career Starter Loan was being paid from funds taken out of my checking account and have never been delinquent in payment prior to this incident. At the time of the delinquent payments, my checking account did not have sufficient funds to pay the loan as my pay was now shifted to be deposited into my savings account.

I have overdraft protection on the checking account, which was never used by USAA. ( Exhibit 9 ) An overdraft notice would have noticed me that the loan was being paid from the checking account. I have statements from XX/XX/XXXX to XX/XX/XXXX, which provides absolutely NO notice that there was an issue with a payment from my checking. There is no overdraft protection noted being used. ( Exhibit 10 ).

I was never notified by USAA that I was delinquent in loan payments for XXXX months and I was never given the opportunity to correct the discrepancy before being reported to credit agencies. Moreover, I was in the states in XX/XX/XXXX and I spoke with USAA and was never notified then of any issue. I had no idea there was an issue. In total, from XX/XX/XXXX to XX/XX/XXXX, I spoke to USAA over the phone approximately 3 times ; I was not notified about any issues with my account or payments during these calls. ( I was able to have my parents make a call for me to USAA and place me on the line via a separate web based phone line. I was calling about separate matters. ) I do not check my bank accounts often as of recent due to being on XXXX in the XXXX XXXX during an ongoing heightened force posture and being constantly out at sea with little access to the outside world. If I was notified of the improper funds through an overdraft notice, I would have noticed my payments were coming from my checking account and would have switched that to my savings. If I would have been noticed via an email that there was a delinquent account, I could have immediately corrected the issue. I have bank statements from XX/XX/XXXX to XX/XX/XXXX that shows no notice and or overdraft charges were attempted from my checking account. ( Exhibit 10 ) I was the one that discovered the issue myself. I looked at my bank account and noticed the loan amount was the same amount it was XXXX months prior. When I clicked on the loan, that is when the delinquent notice showed on the account. From the face page and home screen of my account, there is no notice that there is a delinquency. I never go into the loan to check it because it was on automatic payment historically. Only when I went into the loan account did I see there was an issue. I then immediately corrected the delinquency with USAA. 

XXXX. I was never notified there was an issue with the loan payment being made. I received XXXX email communication about this. While I am XXXX and am at sea a majority of the time, I can receive email communication. USAA could have reached me was via email knowing I was XXXX. At a bare minimum, USAA should have notified me of the delinquent account and allowed me to correct it via my account preference for communication, which is email. 

XXXX. By federal law, I should have been given notice and an opportunity to correct the issue, again, something that did not happen. The Fair Debt Collection Practices Act ( FDCPA ) prohibits a debt collector from telling a credit reporting agency about a debt before either speaking to the consumer or sending a debt validation notice and ensuring it's delivered. USAA has violated federal law by not allowing me notice and an opportunity to correct the issue.

3. USAA stated to me that they tried to call me via my cell phone, however, my account is on notice and flagged that I am on XXXX to the XXXX XXXX. I did not have cellular service while I was XXXX and subsequently never received a phone call from them. USAA then stated that because they could not reach me by phone, they assumed I could not receive any form of electronic notification and is why they did not email me. This is a false assumption and goes against my account preferences, which USAA is on full notice regarding.

USAA at a minimum, knowing I was XXXX to the XXXX XXXX, should have sent an email or phone contacted my Power of Attorney to inform him of the issue so it could have been corrected. Again, this is why I noticed USAA I was out of the country and why I filed the Power of Attorney with them. USAA failed to send an email and failed to contact my Power of Attorney and was wholly negligent in how they handled any notice requirements in this matter.

4. USAA did not issue me mail notice of this incident. First, I can not receive mail at my mailing address listed on my account because I am out of the XXXXXXXX XXXXXXXX in XXXX, XXXX. USAA is aware that I am not at my mailing address in California, again, because my account is on XXXX notice. In preparation for mail addressed to me being sent to the mailing address on my account, my mother regularly checks for and receives my mail. Her statement was submitted under penalty of perjury to all agencies involved stating that she did not receive any delinquent loan payment notification from USAA. Exhibit ( 11 ). In that document, there is also an exhibit showing that my mom regularly receives other people 's mail in her mail box and she showed an example from the mail she received in early XXXX, which is not hers. 

5. USAA indicated in their letter dated XX/XX/XXXX that any debt collection communications will be sent to my email address. ( Exhibit 12 ) I did not opt out of this notice because my wish was and still is to be notified if anything is wrong with my account. USAA failed to follow their own written policy and procedures as I received no notice via email about the loan being in a delinquent status.

6. This entire situation could have been easily corrected with a simple email notification for the on-line account where the account preference/normal mode of communication is email. Even a notice on my statement that a payment was rejected would have alerted me to the problem, but there is nothing. As far as I could tell, everything looked normal.

7. USAA historically has communicated with me via email as evidenced by the correspondence with me confirming in XX/XX/XXXXr 2023, that the loan was on an autopayment schedule. ( Exhibit 13 ) Again, I should have been given an opportunity to correct this.

I had plenty of funds available to pay the loan. I have never been late on a loan payment. The late payments on the loan have ended up on my credit report. ( Exhibit 14 ) I was denied my home loan with USAA because of this on XX/XX/XXXX. ( Exhibit 15 ) I have been damaged because of USAAs actions.

When I learned of the problem, I paid the delinquent balance immediately. I have attached proof that the delinquent amount was paid immediately from my savings on XX/XX/XXXX. ( Exhibit 16 ) I feel strongly that USAA Federal Savings bank was grossly negligent in their handling of this issue. I am invoking all rights under federal law pursuant to 50 U.S.C. App. 531, the Servicemembers Civil Relief Act ( SCRA ) that may be applicable to my circumstance.

Should this not be corrected, I do plan on filing a lawsuit against USAA Federal Savings for violation of Fair Credit Reporting Act, Breach of Contract, Interference of Contract, Unfair or Deceptive Acts or Practices ( UDAP ) under Section 5 of the Federal Trade Commission Act ( FTC Act ) as well as Unfair, Deceptive, or Abusive Acts or Practices ( UDAAP ). Further causes of actions will also be filed against USAA Federal Savings for the damage they have caused me. My credit is tarnished and I also suffered damage by having to obtain a higher interest rate for my home loan that they denied.

Again, I have tried to rectify this directly with USAA Federal Savings, but they stated that there is no one I can speak to within their organization who can correct the reported delinquency. I appreciate your assistance in getting this negative reporting off of my credit report.

This is the only negative item I have on my credit report. I had perfect credit before USAA did this to me while I was protecting my country.

I have attached all exhibits in the attached documents.

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