Consumer complaint received 2025-10-14 00:00:00
Product: Checking or savings account — Checking account
Issue: Closing an account — Company closed your account
Company: UNITED SERVICES AUTOMOBILE ASSOCIATION

Complaint narrative:
USAA Federal Savings Bank abruptly restricted and closed my accounts without prior notice, leaving me without access to my VA benefits and FAFSA refund deposits while preparing for overseas military deployment. This caused immediate financial hardship, prevented me from purchasing required gear and medication, and appears to violate federal consumer-protection and servicemember-relief laws.

Detailed Statement : On or about XXXX XXXX XXXX, USAA Federal Savings Bank restricted and subsequently closed my accounts without any prior notice, written explanation, or opportunity to respond. When I called USAAs general customer-service line to ask about applying for a furlough-relief loan, my call was automatically rerouted to the Fraud Department. I spent about XXXX hour on this call, incurring significant international phone charges since I was calling from XXXX during pre-deployment training. 



During that call, the fraud representative disclosed that there had been login attempts from XXXX  and XXXX  in XX/XX/year>, which directly contradicts USAAs official CFPB response denying any suspicious activity. If such attempts were detected, USAA was obligated to notify and assist me at that timenot months later while closing my accounts as I prepared for overseas deployment. 



USAA representatives also stated that my accounts would remain frozen for XXXX  days and that any remaining funds would be mailed by check. This is impractical because I am mobilized for deployment to XXXX and will not have a reliable mailing address. By the time any check is sent, I will likely be deployed to an undisclosed location, making receipt and deposit impossible. 



Further, USAAs furlough-loan eligibility requirement mandates that an account have a direct deposit within the previous XXXX  daysa requirement I could not meet because USAA itself froze my accounts, blocking all incoming deposits. This circular policy effectively disqualified me from the only relief option offered to affected members. 



After the restriction, I could barely meet the {$20.00} minimum required to open a new account elsewhere. Despite multiple written requests, USAA refused to unfreeze or release my VA benefits and FAFSA refund deposits, which I rely on for essential needs, XXXX  medication, and deployment gear. This situation caused me to fail the XXXX financial-readiness certification I had recently completed. 



We have since begun receiving cancellation notices for our USAA insurance policies due to non-payment, even though the inability to pay was directly caused by USAAs own account restrictions. XXXX USAA representative even advised me to cancel all my insurance policies until I could pay again. Not having auto insurance jeopardizes my ability to commute to and from work and training, creating yet another hardship. 



In addition, in USAAs CFPB reply, the bank made false statements regarding alleged negative balances on my account. These balances were caused solely by USAAs internal failure to properly route supporting documentation I submitted for transaction disputes. I had provided all relevant evidence through USAAs secure document-upload system, but the materials never reached the dispute department. USAA was aware of this issue, as confirmed by chat transcripts and screenshots showing that my submissions were marked in route but never delivered. If USAA had conducted a proper and thorough investigation consistent with 12 CFR 1005.11 ( error-resolution procedures ), the outcome would have been materially different. 



USAAs conduct has caused severe financial hardship, emotional distress, and direct harm to my deployment readiness. The combination of sudden account closure, denied access to essential funds, inaccurate dispute handling, and subsequent insurance cancellations reflects systemic negligence and disregard for regulatory obligations under 12 CFR 1005.11, 1030, and the Servicemembers Civil Relief Act ( 50 U.S.C. 3901 et seq. ).

Desired Resolution : I request that the CFPB require USAA to : Immediately release all frozen deposits, including my VA benefits and FAFSA refund ; Provide a complete written and documented explanation for the account restriction and closure ; Reopen and properly review all prior dispute claims, including those impacted by document-routing errors ; Cease enforcing the XXXX freeze policy for servicemembers preparing for or on active deployment ; Reinstate or extend all canceled insurance policies without penalty ; and Provide compensation for financial losses, international call costs, and the emotional and logistical distress caused by these actions. 



USAAs mishandling of my accounts and disputes has directly undermined my financial stability and military preparedness. I respectfully request the CFPBs urgent review and enforcement action.

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