Consumer complaint received 2021-10-07 00:00:00
Product: Checking or savings account — Checking account
Issue: Problem with a lender or other company charging your account — Transaction was not authorized
Company: UNITED SERVICES AUTOMOBILE ASSOCIATION
State: KY

Complaint narrative:
On Tuesday, XX/XX/XXXX, I received an email notification from a subscription called XXXX XXXX advising a credit was detected in my checking account. The refund was from XXXX. I have not shopped nor returned anything to XXXX in recent months. Curiously, I happened to check our bank account, where I was quickly able to confirm a fraudulent charge from XXXX, as well as five other charges from XXXX, that were also fraudulent. 

I immediately contacted USAA, I noted the time was XXXX est. 
I spoke with a representative named XXXX, who began the fraudulent investigation process. While speaking with her, an additional charge from XXXX was processed. This totaled {$430.00} in unauthorized, theft purchases. XXXX did return the charge for {$55.00}, leaving a total of {$380.00} fraudulently deducted from our account. XXXX then terminated my debit card, to prevent any further charges. 

We have been USAA members for 10+ years. I believe this incident with mark the fifth time our checking account has been compromised in that time. Each of the previous occurrences, a provisional credit was issued in the amount of the missing funds, to protect us as consumers and to re-establish that USAA can be entrusted with the management and safety of the funds we entrust in them. If for some reason the results of their investigation reveal the charges were not fraudulent, that provisional credit would be deducted back from our account. 

This time, we were told it would be up to 10 days before any provisional credits would be issued. However, before an investigation can even begin, the pending fraudulent charges would have to actually post to our account. ( Even in pending status, the amounts were already deducted from our available balance. ) On Wednesday, XX/XX/XXXX, I checked our bank account again and noted the charges were still pending. I contacted USAA again, this time around XXXX  est. I spoke with a representative named XXXX, who advised there was nothing more to be done, we just had to wait for the process to complete. This is unacceptable, so I requested to have the issue escalated. After XXXX made multiple attempts to reach an account executive, she returned to the call and suggested the option of waiting for a call back. I insisted multiple times that I needed someone to call me back that same day, to which she confirmed each time, that I would receive a call by the end of the business day. 
No calls were received. 

Today, Thursday XX/XX/XXXX, I contacted USAA for a third time, at XXXXXXXX. I again reached XXXX. I advised that no one had called me regarding the issue, and she quickly transferred me to an account executive named XXXX. 

XXXX advised the same process and XXXX and XXXX, including the waiting period and the steps taken by the fraud department at USAA. She explained unlike in years past, USAA had a policy change in XXXX of XXXX that they no longer offer provisional credits until after an investigation is complete, or at by the maximum allotted time, ( 10 days ). However, that is ten days from the time the charges post, which depending on the merchant can be anywhere from 3-5 business days. She questioned about our debit card practices and safety, which was rather insulting. She also mentioned signing us up for their fraud protection program. XXXX quickly realized and acknowledged that we were already signed up for that service, and confirmed that the contact information set up was accurate and up-to-date. 

She offered to defer payments to other vendors, to stop payment on ACH payments, to essentially tarnish our finances and good standing with other accounts, because funds were stolen from us through no fault of our own. XXXX explained the new regulation, and that it was by law they abide, but also advised that it is up to the discretion of each financial institution whether they adopt that regulation or not. Meaning, that USAA has chosen to no longer protect the funds and assets they advocate to protect. 

XXXX also advised that it was noted in her system, that an account executive had attempted to contact me twice the previous day and left a voicemail. This is also false. I offered to provide my XXXX phone records as proof. She escalated that issue to the manager of the representative who left that notation. 

After an hour and a half conversation, and hearing USAA 's new policy and procedure repeatedly, nothing more was done. 

In this instance, USAA failed us. They failed in every possible way. Not only does fraud seem to be a prevalent issue in regards to our account specifically, USAA 's fraud alert system has still not notified us either through text or email of any suspicious activity, to which I have repeatedly complained about and received nothing more than apologies and confusion on why their system didn't " flag '' the charges. While they recognize that their system failed, they refuse to issue any provisional credits until the completion of their investigation per their new policy/regulations. 

We have entrusted USAA as our financial institution for multiple lines of business ; banking, credit cards, insurance, car loans, and homeowners insurance. The basic fundamentals of a financial institution of any kind, is to protect the consumer. We give them our money, our accounts, and our business, we expect even a basic level of protection should any fraud or suspicious activity occur. Money directly from our account has been stolen. We are victims of theft in this situation and USAA refuses fulfill their duty as they have in the past, multiple times, while they complete their " investigation ''. An investigation of which the results, we are not privy to. 

Why are we forced to wait to receive OUR money back into our account? Do we not have rights to our own capital? What if I didn't happen to check the bank account when i received the third party email from XXXX XXXX and our bank account was completely drained? XXXX advised we would be in the same situation, with zero protection, until the charges posted and USAA still had ten days to issue that provisional credit. She also noted that she " hoped '' their fraud system would've " eventually '' caught the issue and notified us, but either way, we would still be left unprotected, being essentially punished for USAA 's lack of security and communication. 

Our rights have been directly violated by USAA, and continue to be every day we are still missing the funds from our account. No one should ever be put in a position to financially suffer in any capacity, no matter the amount, at the hands of a financial institution. The very institutions built on protecting those very consumers. 

Fraud is inevitable. However, it is the responsibility of the financial institution to stand behind their clients and ensure they experience the lowest possible hardship, which USAA has always done, until now. 

Along with this report, I have filed a complaint with the XXXX XXXX XXXX, the Federal Deposit Insurance Corporation, the Federal Reserve, and I have submitted a letter to congress.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation