Consumer complaint received 2025-12-04 00:00:00
Product: Checking or savings account — Checking account
Issue: Managing an account — Banking errors
Company: UNITED SERVICES AUTOMOBILE ASSOCIATION
State: NY

Complaint narrative:
USAA : Allowed fraudulent activity on My account Admitted fault, acknowledging deficient security controls Closed his account due to fraud THEY permitted Refused to reopen the account Provided only {$320.00} as resolution to a {$75000.00} failure Failed to remedy adverse credit consequences Failed to comply with federal law governing consumer financial protections USAAs actions meet every legal requirement for : Negligence Breach of contract Wrongful dishonor Failure to maintain commercially reasonable security procedures Failure to investigate errors FCRA violations Unfair and Deceptive Acts and Practices ( XXXX/XXXX  ) Banking liability for fraud losses admitted by the institution The law entitles Me to significant restitution, credit corrections XXXX account restoration, and other compensatory damages. 


XXXX XXXX XXXXXXXX FACTUAL SUMMARY OF USAAS WRONGDOING XXXX. USAA Allowed Fraudulent Activity to Occur Through Security Failures USAA permitted a fraudulent {$75000.00} check to be deposited and processed under XXXX XXXX identity, without : Proper verification Commercially reasonable authentication Compliance with security standards This violates : XXXX XXXX Duty to Maintain Commercially Reasonable Security Procedures Banks must prevent unauthorized or fraudulent transactions ; failure renders them liable. 

Case Law XXXX XXXX XXXX XXXXXXXX XXXX XXXXXXXX, XXXX Bank liable where deficient security controls allowed unauthorized withdrawals. 

XXXX XXXX XXXX XXXXXXXX XXXX XXXX XXXXXXXX, XXXX XXXX XXXX ( XXXX XXXX. XXXX ) Bank liable for failing to detect fraudulent checks due to inadequate verification procedures. 


USAA admitted fault when it issued a small reimbursement check and assigned a claim number. 
Legally, this admission : Establishes negligence Establishes liability Eliminates any defense based on customer responsibility XXXX XXXX XXXX Wrongful Account Closure After a Fraud THEY Caused Closing a customers account after the bank itself allowed fraud is : Retaliatory Improper Legally actionable Under : XXXX XXXX Wrongful Dishonor A bank is liable when it refuses to honor a customers ability to access funds due to internal error or negligence. 

Case Law : XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX  ) Wrongful dishonor creates liability for damages, including credit and reputation harm. 



XXXX XXXX XXXX. Mishandling Negotiable Instruments and Reversing Acceptance The check at issue meets the definition in XXXX XXXX XXXX  Negotiable Instrument Once a bank accepts a negotiable instrument, obligations are governed by : XXXX  XXXX Payment Discharges Obligation XXXX  XXXX Tender of Payment XXXX  XXXX Dishonor Reversing payment after acceptance is a dishonor, creating full liability. 

Case Law : XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Reversing accepted funds without lawful justification constituted wrongful dishonor and negligence. 



XXXX XXXX XXXX Mishandling Fraud, Failing to Investigate, and Violating Federal Law Under the Electronic Fund Transfer Act ( EFTA ) and Regulation E ( 12 CFR 1005 ) : Banks MUST investigate consumer fraud claims Banks MUST correct unauthorized activity Banks MUST restore funds if the institution failed in its duties USAA failed in : Timeliness Completeness Accuracy Restoring the account Case Law : XXXX XXXX XXXX XXXX, XXXX Bank liable for inadequate fraud investigation and delayed restitution. 



XXXX XXXX XXXX. FCRA Violations for Failure to Correct Adverse Reporting If USAA reported or allowed continued derogatory reporting after admitting error, this violates : 15 U.S.C. 1681s-2 ( a ) Duty to furnish accurate information 15 U.S.C. 1681s-2 ( b ) Duty to investigate disputes Case Law : XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX  ) Furnisher is liable for failing to correct inaccurate reporting. 

XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Reporting disputed information without investigation is unlawful. 



XXXX XXXX XXXX. RESULTING DAMAGE ( FULLY COMPENSABLE ) Because of USAAs failures and admitted security breach, that I suffered : Severe credit damage Inability to open new accounts Loss of access to essential financial tools Financial instability Emotional distress Reputational harm Economic loss due to denied opportunities All are compensable under : Contract law damages Tort law damages FCRA statutory and punitive damages UCC wrongful dishonor damages XXXX  remedies

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