Consumer complaint received 2026-04-30 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Getting a loan or lease — Changes in terms mid-deal or after closing
Company: UNITED SERVICES AUTOMOBILE ASSOCIATION
State: TN

Complaint narrative:
Issue : Fraudulent auto loan / funds disbursed to non-existent dealership Company : USAA Federal Savings Bank Complaint : On XX/XX/year>, I entered into what I believed to be a legitimate vehicle purchase through an online dealership operating as XXXX XXXX XXXX XXXX. After agreeing on terms, I completed a USAA auto loan application on their app platform and the dealership provided a purchase agreement. The purchase agreement listed a different entity name ( XXXX XXXX XXXX XXXX ). This discrepancy was not explained, and no verification or clarification was provided by USAA prior to disbursement of funds. I believed this company to be a parent company or financial arm of XXXX XXXX XXXX XXXX. On XX/XX/year>, I was informed by the dealership that an XXXX transfer had been requested. On XX/XX/year>, I was notified that USAA disbursed the loan funds via XXXX. I was told the vehicle would be delivered on XX/XX/year>. The vehicle was never delivered. On XX/XX/year>, all attempts to contact the dealership, delivery driver, and representatives failed, including the delivery driver 's phone number that was " no longer in service '' when I called. I immediately contacted USAA to report suspected fraud. As of XX/XX/year> : - I have not received the vehicle. - The seller appears to be a fraudulent or non-existent entity. I conducted a business entity search on XX/XX/year> for XXXX XXXX XXXX XXXX in Minnesota ( and Colorado which was a second address listed in the documents sent to me for signature with the purchase agreement ) secretary of state website returned no registered records/entities under that name. Despite reporting this as fraud, I have been informed that I remain responsible for repayment of the loan. This situation raises serious concerns about USAAs underwriting and fraud prevention controls. Specifically : - Funds were disbursed via ACH without verification of a legitimate, registered business entity. - No independent validation of the seller was performed. - A discrepancy in entity names was not flagged or resolved prior to funding. - Funds were released without confirmation of title, delivery, or asset existence. Additionally, customer service responses have been inadequate. I was advised to file a police report and research my own options. I was informed on XX/XX/XXXX that my complaint with this loan had started in internal investigation of the fraud. I was contacted yesterday by USAA, they stated that the application was done on the USAA app, they received the purchase agreement, they did recognize the company names did not match from my application and the purchase agreement but said they verified the account the ACH transfer was going to. They stated their conclusion of their investigation ( 2 day investigation ) was that I am responsible for the loan. Failure to verify the dealer was a legal entity prior to transferring funds This transaction represents a clear failure on the part of USAA to protect me from this fraud. From what I have read since I believed this dealer to be a fraud, an ACH request from a dealer should automatically increase USAA 's verification process. As such, I dispute any assertion that I am responsible for repayment of the loan as USAA failed to verify the dealer as a legal entity prior to the ACH transfer.

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