Consumer complaint received 2026-01-27 00:00:00
Product: Checking or savings account — Checking account
Issue: Closing an account — Company closed your account
Company: UNITED SERVICES AUTOMOBILE ASSOCIATION
State: UT

Complaint narrative:
USAA closed a personal checking and savings account based on an incorrect determination that the account was being used for business activity. The transactions cited by USAA were owner distributions ( dividends ) from a wholly owned XXXX paid to the account holder personally. These transfers are lawful, routine, and do not constitute operating a business through a personal account. The XXXX maintains a separate business bank account, and no customer payments, vendor receipts, payroll, or other operating activity occurred in the personal USAA account . 

USAA issued a single electronic notice dated XX/XX/year>. The account holder had elected to receive electronic notices. No notice was received by mail. 
That notice stated that the account may be closed following a future review and suggested that there would be time to make alternative banking arrangements. After issuance of the XX/XX/XXXX electronic notice : ( i ) No follow-up communications were sent, ( ii ) No notice was provided that the account would be closed, ( iii ) No notice was provided that the account had been closed, ( iv ) The account holder discovered the closure only after funds became inaccessible and an ATM withdrawal failed. 

Upon contacting USAA to inquire why funds were unavailable, the account holder was informed, after the fact, that the account had already been closed. USAA has since stated that there is no recourse because the account is closed and that a check will be mailed for the remaining balance. 

The sudden loss of access to funds has caused significant personal financial disruption, including : ( i ) Immediate inability to access household funds while awaiting receipt of a mailed check, ( ii ) Urgent and unplanned transition of direct deposits, bill payments, mortgage payments, utilities, insurance, and other essential financial obligations to a new financial institution, ( iii ) Risk of missed payments, late fees, and cascading financial harm. This harm was foreseeable, substantial, and avoidable, particularly given that the account action was based on a factual misclassification and that no notice of actual closure was provided prior to loss of access to funds. 

The account was closed based on a material factual error ( owner distributions from an XXXX do not constitute business account usage ). USAA did not follow the process described in its own notice, which contemplated a future review and time to make alternative arrangements. Access to funds was terminated without notice of closure and without a meaningful opportunity to clarify or correct the record. The process appears inconsistent with reasonable consumer-banking standards and good-faith application of account policies. These facts raise concerns under the Dodd-Frank Acts prohibition on Unfair, Deceptive, or Abusive Acts or Practices ( UDAAP ), particularly with respect to notice, access to funds, and procedural fairness.

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