Consumer complaint received 2022-11-01 00:00:00
Product: Money transfer, virtual currency, or money service — Virtual currency
Issue: Fraud or scam — 
Company: UNITED SERVICES AUTOMOBILE ASSOCIATION
State: TX

Complaint narrative:
My wife, who does XXXX XXXX XXXX, was contacted by a client requesting her services. An amount of {$1200.00} was agreed upon, and the client said she would mail my wife a check for the amount. A few days later, the client told my wife that she accidentally sent the money for the photographer in the same check sent to my wife. The client asked my wife if she could send her the difference upon cashing the check. On XX/XX/XXXX, I received a cashiers check in the amount of {$3200.00}. I called my bank, USAA, and asked them if I could mobile deposit my wifes check. They said since she was not on the account it could not be done. However, I was told that if my wife endorsed the back of the check and signed it over to me then it could be done. I was skeptical the whole time however, i figured if USAA accepted the check then it must be good. I mobile deposited the check on XX/XX/XXXX. The funds were immediately available. I thought that to be odd since I only had {$320.00} in the account. Nevertheless, I trusted USAA and figured the check must be good if they accepted it. I then agreed to send the client a total of {$2000.00} as a refund. In two separate XXXX transactions, I sent {$1000.00} each to an XXXX XXXX. The XXXX payment went thought without a problem. 

Two days later on XX/XX/XXXX, I noticed that my USAA account was negative over {$2400.00}. I called USAA and they told me the check I deposited was fraudulent and the funds were rejected. I was told by the USAA call taker, XXXX, to file a police report. I filed police report # XXXX with the XXXX Police Department ( XXXX XXXX, TX ) for Fraud. On that day, I told the call taker about how I was scammed through XXXX. I expected a Regulation E complaint to be generated and I then waited for USAA to contact me with their investigation findings. 

Ten business days came and went and no word from USAA. I found that odd since under regulation E, the banking institution has to have a finding within 10 business days if they have to temporarily refund the money. I called USAA on XX/XX/XXXX and spoke with call taker XXXX. XXXX told me that there hadnt been a Regulation E complaint filed by XXXX. XXXX told me that that was an error on XXXX part. XXXX said she would then start the Regulation E complaint for me. 

On XX/XX/XXXX, USAA notified me that I was at fault for sending the XXXX money. They said the investigation was closed and that I was on the hook for the money. On XX/XX/XXXX, I called USAA and requested documents on how USAA came to that conclusion. I asked for a supervisor to call me regarding it. 

On XX/XX/XXXX, a specialist from USAAs fraud department, XXXX, called me. She told me that there had not been a Regulation E violation and that Regulation E does not cover this. She told me in this case because I sent the money on my own, even thought I was induced to do so, it was my fault. I questioned her on why USAA accepted that mobile check even though I didnt have the funds to cover it. XXXX told me that because I was a loyal customer and that my account was in good standings, they honored the check. Furthermore, when I asked XXXX why a Regulation E complaint wasnt filed on XX/XX/XXXX, she told me that it was an error on XXXX part. 

I believe that Regulation E applies to this case and that USAA is violating the law in not agreeing with it. I have tried to resolve this with them and they refuse to refund me my money. 

For your consideration, XXXX XXXX

Company public response: Company believes complaint represents an opportunity for improvement to better serve consumers
Company response to consumer: Closed with explanation