Consumer complaint received 2026-03-19 00:00:00
Product: Checking or savings account — Checking account
Issue: Managing an account — Problem making or receiving payments
Company: UNITED SERVICES AUTOMOBILE ASSOCIATION
State: NY

Complaint narrative:
I am filing a complaint against USAA regarding the handling of my checking account, lack of proper notice, and the application of funds through charge-off recovery. On XX/XX/XXXX, a {$230.00} temporary credit issued in connection with a debit card dispute was reversed, along with an additional reversal of {$68.00}. These reversals caused my account to become negative. While I understand that dispute outcomes may result in reversals, I was not clearly informed that these actions would place my account at risk of charge-off or that future deposits could be applied toward the balance. On XX/XX/XXXX, I contacted USAA via chat to inquire about the status of my account and a pending deposit. During that interaction, I was explicitly told that my account was fine and was not informed of any negative balance, risk of charge-off, or need for immediate action. I relied on this information. On XX/XX/XXXX, I contacted USAA again and was informed for the first time that my account had been closed that same day due to being overdrawn. I was told that a notification had been sent that day, meaning I was not provided advance notice prior to closure. During that same interaction, I was informed that any incoming deposits would be applied to the overdrawn balance. This is especially concerning because I had already contacted USAA the day prior regarding a pending deposit and was not warned that my account was at risk of closure or that funds would be subject to offset. Had I been properly informed, I would have immediately taken action to resolve the balance and prevent the charge-off. Subsequently, deposits made into the account were taken through charge-off recovery without meaningful prior notice or a reasonable opportunity to act. My most recent student financial aid refund, approximately {$350.00}, is also being applied in this manner, causing immediate financial hardship. While USAA may claim that notice was provided through an internal portal, I did not have timely or reasonable access to such notice prior to the account being closed and funds being applied. I was informed of the closure only after it had already occurred and had to request access to the documentation. I am not requesting that the account be reopened or maintained. I am requesting a fair resolution, including a refund or adjustment of the funds taken, based on the lack of timely and meaningful notice and the misleading information provided when I proactively contacted USAA. Additionally, I request documentation showing when and how I was notified of the negative balance, the pending charge-off, and the application of incoming deposits toward the balance. I was later informed that I could have continued disputing transactions that contributed to the negative balance ; however, this information was not provided at the time my account was at risk of charge-off, when it would have been most useful.

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