Consumer complaint received 2025-09-27 00:00:00
Product: Checking or savings account — Checking account
Issue: Problem caused by your funds being low — Overdrafts and overdraft fees
Company: UNITED SERVICES AUTOMOBILE ASSOCIATION
State: FL

Complaint narrative:
USAAs explanation is inconsistent and illogical. They told me the reason for holding my check for 5 business days ( 7 calendar days ) is that I have had overdrafts in the past. But USAA themselves created those overdrafts by allowing transactions through, even though my account was set to Auto-Decline. Now they claim to be protecting me from overdraft by holding my funds longer than ever before.

In prior years, USAA released partial funds immediately and the balance in 3 days or less. This new 7-day hold is punitive, discriminatory, and unjustified under Regulation CC. It is not protection ; it is punishment, and it makes no logical sense. The bank is using its own system-caused overdrafts as a permanent penalty against me, while denying me access to my own funds. 


Summary of Complaint USAA has placed an extended hold of {$1400.00} until XX/XX/XXXX on my account. This hold was applied automatically, without valid justification, and is preventing me from paying bills and maintaining credit. 

I have spoken with four separate USAA representatives. In the most recent call, the rep explicitly told me we can not override the algorithm. This confirms that decisions on my account are being made by an automated system, not a human review, and that I am effectively trapped without due process or remedy.

Details : I am a VA-disabled veteran ( 100 % service-connected, permanent & total ). USAA is aware of my hardship status.

The account is set to Auto-Decline for overdraft, meaning transactions are blocked rather than reviewed or covered but I am still subject to overdraft-related consequences.

The hold and auto-decline system amplifies small issues into major penalties : Denied access to my own funds.

Forced overdrafts due to withheld deposits.

Inability to pay bills on time credit damage.

I have made prior complaints to USAA about algorithmic amplification and abusive application of funds-availability rules.

Legal / Regulatory Concerns : Regulation CC ( 12 CFR Part 229 ) requires banks to provide written justification for extended holds. USAA has not provided a valid exception reason.

The refusal to provide human review or override constitutes unfair and abusive practice under CFPB authority. 

The targeting of a XXXX veteran for algorithmic exclusion raises concerns of discrimination and disparate impact. 

International precedent : In XX/XX/XXXX, Vietnams central bank closed XXXX XXXX accounts for failure to comply with new digital ID rules. USAAs system reflects the same automated exclusionary practices. Examples / Public Complaints & Regulatory Actions Against USAA OCC Order Unsafe and Unsound Practices ( XXXX ) In XX/XX/XXXX, the Office of the Comptroller of the Currency ( OCC ) ordered USAA Federal Savings Bank to correct longstanding regulatory deficiencies in areas including technology, consumer compliance, information systems, and risk governance.

Reuters This shows USAA has been flagged by regulators for weaknesses in tech, control, and consumer-protection oversight.

Use this to argue that algorithmic or app-based abuse is consistent with known systemic issues.

User Complaints About USAA Mobile / UI Changes I have also had many cases of algorithmic manipulation on how payments go out and what is allowed to go through even on auto decline. They create a situation in which I have problems- and then I have to accept their poor decision making on future issues.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation