Consumer complaint received 2025-12-16 00:00:00
Product: Checking or savings account — Checking account
Issue: Managing an account — Deposits and withdrawals
Company: UNITED SERVICES AUTOMOBILE ASSOCIATION

Complaint narrative:
USAA restricted and froze SCRA-protected federal funds belonging to XXXX XXXX XXXX, refused to honor a valid power of attorney, and then closed accounts and issued paper checks that could not be deposited due to security clearance restrictions. USAA now claims my concerns are without merit, but its own timeline, transcripts, and actions show ongoing SCRA violations and serious harm to my children, XXXX and XXXX XXXX. 

Full Complaint Narrative USAA has stated to me that USAA refused to apply or acknowledge the SCRA protections for XXXX or XXXX is without merit, and that it proceeded with closing the accounts and issuing the account balances via check prior to the originally advised XXXX period, as USAA was notified of SCRA-protected funds. 

I believe this statement is both legally and factually incorrect, for the reasons below.

1. USAAs business model creates heightened SCRA obligations USAA is not a typical commercial bank. Membership is based on military affiliation, including : Active-duty servicemembers Reservists Dependents Veterans As a result : A large percentage of USAA members are covered by SCRA in some way.

Federal funds such as DFAS military pay, VA benefits, SSDI, FAFSA, and SSA benefits are routinely deposited into USAA accounts.

Given this membership structure, it is both foreseeable and routine that SCRA applies to many USAA depositors. In my view, USAA therefore has heightened responsibility, not less, to : Proactively identify SCRA-protected funds, and Handle any restrictions, freezes, or closures with SCRA compliance and urgency in mind. 

XXXX. USAA had actual knowledge of SCRA-protected funds by XXXX XX/XX/year> According to XXXX own chat transcripts and call recordings from XXXX XX/XX/year>, USAA was XXXX that : XXXX active-duty XXXX belonging to XXXX servicemembers ( XXXX and XXXX XXXX XXXX was XXXX XXXX XXXX account restrictions. 

XXXX XXXX had XXXX orders in effect. 

XXXX XXXX was on active-duty status at XXXX with a field exercise beginning XXXX XXXX. 

Multiple federal fund sources ( XXXX, VA, XXXX, XXXX ) were being captured by the restriction. 

Therefore, USAA was aware that : XXXX applied, and XXXX funds belonging to active-duty servicemembers and a dependent were being restricted well before the dates referenced in their response letter to me. 

XXXX. Freezing federal funds without a court order Regardless of XXXX, federal benefits such as : XXXX XXXX VA benefits XXXX XXXX benefits XXXX federal funds are highly protected. USAA restricted access to these federal funds : From approximately XXXX XX/XX/year> through XXXX XX/XX/year> for my son XXXX XXXX And continues to restrict access for my daughter XXXX XXXX I believe USAA did so without any court order, relying instead on its internal Depository Agreement and policies. Internal agreements can not override federal law or SCRA protections. 

From my perspective, this prolonged freezing of federal funds without legal authority is unlawful and violates XXXX obligations and other banking regulations designed to protect servicemembers and beneficiaries. 

XXXX. Substantial and ongoing impact on XXXX active-duty soldiers For XXXX XXXX XXXX XXXX, XXXX, Alaska ) : His XXXX pay was inaccessible XXXX a field exercise and TDY to Hawaii. 

He was forced to rely on family for financial support while on duty. 

His funds were not made available until XXXX XX/XX/year>, and only after outside intervention. 

The check allegedly mailed to his Alaska address on XXXX XXXX never arrived. 

For XXXX XXXX ( active-duty, XXXX orders starting XXXX XX/XX/year> ) : Her funds were frozen before XXXX and throughout pre-deployment training. 

She opened a new USAA account, but due to restrictions, she could not receive XXXX transfers or instant deposits. 

The account closure deprived her of needed funds while preparing for and entering XXXX. 

Her funds are now supposedly represented by a paper check located in XXXX. 

Because of my U.S. security clearance, I am prohibited from opening foreign bank accounts and therefore can not deposit her check on her behalf. 

USAA has refused to recognize her valid power of attorney ( POA ), which would allow me to act for her. 

These facts directly contradict USAAs claim that my allegation about SCRA protections is without merit. 

XXXX. Refusal to honor Alinas POA and resulting SCRA harm USAA was informed of XXXX XXXX dates in advance. Despite this, USAA has refused to honor her POA and allow me to manage her accounts and insurance while she is XXXX. 

As a result : XXXX XXXX XXXX lapsed on or about XXXX XX/XX/year> because of the account freeze. 

She can not resolve this issue from her XXXX location. 

I can not resolve it for her, solely because USAA will not accept or apply her POA. 

Her vehicle in the United States remains uninsured, not through any fault of her own, but because USAA restricted her account and then refused a POA workaround. 

This is causing ongoing harm and, in my view, constitutes an SCRA violation and an unreasonable interference with a XXXX servicemembers financial affairs. 

If USAA intends to correct this, it must immediately reinstate or repair her auto insurance coverage and correct the status of her accounts. 

XXXX. Lack of urgency and failure to mitigate hardship USAA claims that, once it was notified of SCRA-protected funds, it closed accounts and issued checks prior to the originally advised XXXX period. 

However : The final dispute was resolved on XXXX XX/XX/year>. 

USAA waited until XXXX XX/XX/year> just to initiate closure. 

Instead of promptly providing accessible funds ( e.g., via wire transfer ), USAA issued paper checks and mailed them, including internationally, without tracking. 

No wire transfers were offered at that time. 

A wire transfer was suddenly possible on XXXX XX/XX/year> for my XXXX  XXXX, contradicting the earlier stance that wires could not be processed.

Nothing about this timeline reflects the urgency, hardship mitigation, or proactive SCRA compliance that should apply when active-duty servicemembers funds are restricted.

7. Conclusion USAAs assertion that my SCRA-related allegations are without merit is contradicted by : USAAs own transcripts and call recordings The documented timeline of restrictions and delayed access The ongoing inability of XXXX XXXX XXXX to access their funds The prolonged freezing of federal deposits The refusal to honor a valid POA during XXXX The lapse of essential auto insurance as a direct result of account restrictions The fact that checks were issued in a form that could not reasonably be deposited due to security-clearance restrictions For these reasons, I believe USAAs position is unsupported by law, unsupported by the factual record, and inconsistent with its statutory obligations under SCRA and federal banking rules.

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