Consumer complaint received 2025-10-16 00:00:00
Product: Checking or savings account — Checking account
Issue: Managing an account — Deposits and withdrawals
Company: UNITED SERVICES AUTOMOBILE ASSOCIATION

Complaint narrative:
MASTER COMPLAINT USAA Federal Savings Bank Subject : USAA Account Restrictions and Closures Servicemember & amp ; Family Financial Hardship / Request for Oversight Summary I am filing this complaint regarding USAA Federal Savings Bank, headquartered in XXXX XXXX, XXXX. 
On the night between XX/XX/XXXX and XXXXXXXX XXXX USAA abruptly restricted and subsequently closed all accounts belonging to * * me and my XXXX adult childrenboth XXXX XXXX XXXX servicemembers XXXX * without prior notice, explanation, or opportunity to respond. 
This action instantly froze all of our funds, including military pay, VA benefits, and other deposits. USAA later informed us that the accounts would remain restricted for 60 days, after which funds might be issued by check. No immediate financial remedy or access option was provided. 
The restrictions have caused severe and ongoing hardship to three individuals who bank exclusively with USAA and hold no other accounts or credit cards. 
Because all our funds were frozen simultaneously, we were unable to send or receive money among each other, pay bills, or access essential goods, medication, and transportation. 

Individual Impact XXXX XXXX : I rely on USAA for all of my monthly income and for access to medication and daily living expenses. The sudden freeze left me without the ability to pay for food, prescriptions, or travel. I will be caring for my daughters home and pets during her deployment. 
We are also in the process of establishing me as her dependent with XXXX, since she provides more than 50 % of my financial support. This freeze now prevents her from ( 1 ) providing that support and ( 2 ) submitting the required financial proof to XXXX for dependency approval. 
In addition, we began receiving insurance cancellation notices from USAA citing non- paymentdespite the fact that payments could not process due to the account freeze. When I called for assistance, a USAA agent suggested I cancel all of our policies myself until we can pay again, which would leave us uninsured through no fault of our own. 
XXXX XXXX : She is an XXXX  XXXX XXXX XXXX XXXX currently mobilized for pre- deployment  in XXXX and preparing to move to XXXX XXXX XXXXXXXX XXXX She depends on USAA for her pay, XXXX, and deployment expenses. Because her accounts were frozen, she could not purchase uniforms, transportation, or gear required for mobilization. In addition, we had intended to have a Power of Attorney in place for me to assist with her finances during deployment, but that can not be implemented because USAA no longer allows me to maintain membership or access. This creates additional hardship for both of us while she serves overseas. 
XXXX XXXX : He is an XXXX XXXXXXXX stationed in XXXX, XXXX. His checking account was restricted the same night as mine and his sisters. Two military paychecks have since been deposited into his frozen account, leaving him unable to access his income while in the field. He was also not able to properly prepare for his field exercise by not being able to purchase new uniforms and additional gear. 
Further, both servicemembers were unable to apply for USAAs own furlough or hardship assistance programs, and other banks denied them as well, because : New accounts require an established banking history and direct deposit within the past 30 days. 
Being in training or deployment made new account setup impossible. 
New accounts can not receive XXXX or account-to-account transfers for several weeks. 
Because all three of us exclusively bank with USAA, this freeze effectively paralyzed an entire military family and prevented any internal financial support among us. 

Systemic Issues and Misconduct USAAs CFPB response contained multiple false statements. I can provide screenshots, chat transcripts, and dated records showing that : USAA failed to forward supporting documentation to its dispute department due to known internal system errors. 
USAAs online document-upload portal was malfunctioning for weeks, causing critical evidence for disputes to remain in route and never reach investigators. 
USAA was aware of these failures, as confirmed by its own representatives in chat logs. 
Following the account freezes, USAA issued automated insurance cancellation notices for alleged non-payment, even though the inability to pay resulted from the banks own restrictions. 
When contacted, USAA agents advised affected members to cancel their own insurance policies until they could pay again, compounding financial and legal risk for deployed servicemembers and dependents. 
Because of these unresolved documentation and system issues, USAAs internal system created artificial negative balances, triggering fraud alerts that escalated to account closures and family- wide restrictions. 

If USAA had processed our dispute evidence correctly, the supposed fraud pattern would never have existed, and this hardship would not have occurred. 

Applicable Laws and Concerns The conduct described appears to violate the following : 12 U.S.C. 5531 ( DoddFrank Act ) Unfair, deceptive, or abusive acts or practices.

50 U.S.C. 39014043 ( Servicemembers Civil Relief Act ) Failure to protect servicemembers financial access and dependents.

Electronic Fund Transfer Act ( Regulation E ) Failure to provide notice or conduct reasonable investigation of reported banking errors.

State consumer-protection and insurance laws Improper policy cancellation and denial of coverage resulting directly from a bank-initiated freeze. 
USAA has previously been sanctioned for similar misconduct ( CFPB Consent Order XXXX XXXX ; OCC Cease-and-Desist Order XXXX ). This situation shows those practices persist. 

Requested Action Conduct an immediate investigation into USAAs mass account restrictions impacting active-duty servicemembers and dependents. 
Verify whether these actions violate prior consent orders or federal consumer-protection statutes. 
Require USAA to restore access to funds or provide expedited relief to affected members. 
Compel USAA to reinstate or protect affected insurance policies that were canceled or placed at risk due to the banks own restrictions. 
Enforce restitution or compensation for damages caused by prolonged account freezes, policy cancellations, and false internal fraud designations.

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