Consumer complaint received 2025-02-12 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: VA

Complaint narrative:
On XX/XX/XXXX, {$3500.00} was garnished from my USAA checking account from XXXX XXXXXXXX XXXX regarding an alleged unpaid car tax. After speaking with XXXX XXXX ( XX/XX/XXXX ), I was informed that this garnishment was made in error and that we do not owe any back taxes. This error was linked to the XXXX XXXX car tax exemption, despite all necessary paperwork being on file with XXXX XXXX. Additionally, the garnishment demand was submitted to and executed by USAA despite my name being incorrect on the paperwork. 

We were further advised that it could take XXXX weeks to return the funds, even though this mistake was entirely on the XXXX part. As we live on a fixed budget, the loss of nearly {$4000.00} has placed a severe financial burden on us. I was notified by XXXX, the third-party, for-profit credit collection agency who answers when a resident is calling the Department of Tax Administration XXXX XXXX XXXX for XXXX XXXX XXXX XXXX listed on my official XXXX XXXX paperwork, that my account was closed and that the check from my bank ( USAA ) was returned on XX/XX/XXXX. My bank ( USAA ) continued to tell me they could not issue a refund until they received a return check. I asked if they could stop payment and reverse charges, a common bank practice, and USAA refused, even though they received official paperwork from XXXX XXXX stating the garnishment was an error. I escalated my concern to the USAA president and, while I did receive XXXX phone calls from a woman XXXX XXXX XXXX in his office, she was never available to actually speak with me and help resolve this. 

In XXXX, I contacted my XXXX XXXX representative, XXXX XXXX, who forwarded my concern to the XXXX XXXX Department of Tax Administration, XXXX XXXX XXXX XXXX XXXX XXXX. I spoke with XXXX XXXX XXXX, who was very helpful, reviewed my account, and confirmed that the garnishment was an error on the XXXX part. She reached out to USAA to correct the issueand confirmed that USAA received all necessary paperwork ; however, despite my nearly daily attempts to resolve the issue with USAA, it took almost XXXX weeks for my money to be returned. During this time, I was preparing to transition off of XXXX XXXX XXXX XXXX, and this error caused me to miss bill payments, as I had carefully budgeted my finances ahead of XXXX. 
I have two major concerns : 1. USAA executed the garnishment despite the incorrect spelling of my name on the paperwork. Initially, I thought I was the victim of identity theft. 
2. I was forced to fix the errors made by both XXXX XXXX and USAA, with little to no accountability on their part. I worry that this could be happening to others who may not have the ability or persistence to fight back. 
I realize that, in the grand scheme of things, this was a relatively small amount of money. But the impact on me was significant, and I believe the behavior of both XXXX XXXX and USAA was, at best, negligent and, at worst, unscrupulous.

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