Consumer complaint received 2025-11-05 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Problem with a purchase shown on your statement — Credit card company isn't resolving a dispute about a purchase on your statement
Company: UNITED SERVICES AUTOMOBILE ASSOCIATION
State: CA

Complaint narrative:
This complaint concerns USAA Federal Savings Banks handling of a prior credit-card fraud dispute and its subsequent CFPB response , which failed to provide investigation evidence as required under Regulation Z ( 12 C.F.R. 1XXXX ). 
In USAAs prior response, the bank stated that the disputed transactions from XXXX XXXX XXXX were authorized because the chip was read and because I had the card in my possession. These statements are not a regulatory basis for assigning cardholder liability. Regulation Z does not permit denial of a billing-error claim solely on the basis of physical card possession or chip usage. 
More importantly, USAA failed to provide any investigation evidence, including : Merchant timestamps Merchant location data Transaction sequencing/velocity Physical feasibility analysis Internal communications or merchant documentation I specifically requested these documents. None were provided. The absence of timestamp review is significant because the transactions occurred within approximately two hours across multiple distant merchants ( XXXX, XXXX, XXXX, XXXX, and XXXX ) , making them physically impossible for a single individual to complete under normal travel conditions. USAA did not address this physical-impossibility argument at all.

USAAs response instead cited internal policies and procedures and Visa guidelines. Visa network rules do not supersede Regulation Z requirements. Under 12 C.F.R. 1026.13 ( f ), a reasonable investigation must be conducted using relevant evidence. Merely asserting chip usage and card possession does not satisfy this standard. 
Additionally, on XX/XX/year>, USAA issued a {$320.00} internal remediation payment tied to prior dispute handling. This action contradicts its claim that all procedures were followed correctly and indicates that an internal control issue or error existed. 
Finally, my attempt to obtain written communication from the executive-office email address provided was unsuccessful, and the email bounced. This prevented me from receiving timely written acknowledgment as contemplated under 1026.13 ( d ) ( 1 ).

Requested Regulatory Action I respectfully request that the CFPB : Determine whether USAA met its obligations under 12 C.F.R. 1026.13 ( f ) to conduct a reasonable investigation, including review of time, location, and merchant-sequencing evidence.

Determine whether denial based on chip read and post-event card possession constitutes a compliant liability assignment.

Require USAA to produce : Merchant timestamps Merchant location data Internal investigation notes Any communications with merchants or processors Require full remediation of the remaining disputed amount ( {$440.00} ), including any related interest and fees.

Review whether USAAs internal remediation event suggests systemic dispute-handling deficiencies.

USAA : Did not provide timestamp/location evidence, Relied on non-regulatory rationales, Did not produce requested investigation documentation, Issued partial remediation inconsistent with its denial, Failed to acknowledge physical impossibility, And relied solely on internal policy/verbal assertions.

This appears to constitute a failure to perform the reasonable investigation required under Regulation Z.

I request supervisory review and remediation.

Thank you.

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