Consumer complaint received 2026-05-06 00:00:00
Product: Debt collection — Medical debt
Issue: Written notification about debt — Notification didn't disclose it was an attempt to collect a debt
Company: UNITED SERVICES AUTOMOBILE ASSOCIATION
State: SC

Complaint narrative:
I am filing this complaint against USAA regarding the mishandling of my auto insurance claim following a serious motor vehicle accident that happen on XX/XX/year>. At the time of the accident, I was operating my sons insured with USAA vehicle, and me and my other son who has special needs and is XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX was a passenger. Both of us sustained injuries. USAA determined that I was at fault and denied my medical claims. However, USAA representatives explicitly stated that my sons medical expenses would be covered under the policy. Despite this clear representation, USAA has failed to pay any of my and my sons medical bills. I have been getting calls from the billing department about our medical bills. My son bill total is {$16000.00}, and my total bill is {$18000.00}. My son policy includes Medical Payments ( XXXX ) coverage, which applies to passengers regardless of fault. As an injured passenger, my son is entitled to these benefits. USAAs failure to process and pay his medical claims is a direct violation of the policy and constitutes improper claims handling. Furthermore, USAA has failed to properly evaluate and apply first-party benefits, including XXXX and any applicable XXXX XXXX XXXX ( XXXX ). Instead, they have relied solely on a disputed liability determination to delay or deny benefits that should be paid regardless of fault. USAAs actions demonstrate a pattern of conduct that raises serious concerns, including : * Misrepresentation of policy coverage and benefits * Failure to honor contractual obligations under the policy * Unreasonable delay and failure to pay valid medical claims * Failure to conduct a fair and thorough investigation * Lack of transparency and failure to provide adequate written explanations * Causing financial and emotional hardship, particularly given my sons severe disabilities I have made multiple attempts to resolve this matter directly with USAA, including requests for clarification, documentation, and claim status updates. These efforts have not resulted in a meaningful response or resolution. I have all phone recorded with each rep. I have issued a formal demand letter providing USAA an opportunity to cure these violations. Their continued failure to act raises further concerns of bad faith claim practices. Additionally, USAA has failed to properly evaluate and apply first-party benefits, including Medical Payments coverage and any applicable Personal Injury Protection ( PIP ). Instead, they have relied on a disputed liability determination to delay or deny benefits that should be paid regardless of fault. Specifically, USAAs actions appear to violate the XXXX XXXX Unfair Claim Settlement Practices Act, including but not limited to XXXX XXXX XXXX. XXXX, which prohibits insurers from engaging in unfair claim settlement practices. Based on the handling of my claim, USAAs conduct appears to include the following violations : XXXX ( XXXX ) : Failing to adopt and implement reasonable standards for the prompt investigation of claims XXXX ( XXXX ) : Failing to affirm or deny coverage within a reasonable time after proof of loss XXXX ( XXXX ) : Not attempting in good faith to effectuate prompt, fair, and XXXX settlement of claims in which liability has become reasonably clear XXXX ( XXXX ) : Compelling insureds to institute litigation to recover amounts due by offering substantially less than what is ultimately recoverable XXXX ( XXXX ) : Misrepresenting pertinent facts or insurance policy provisions relating to coverages. This conduct has caused significant financial and emotional hardship, particularly given my sons severe medical conditions and ongoing care needs. EVIDENCE IN MY POSSESSION XXXXAudio recording of all conversation with all reps. XXXX. The insurance policy establishing the true {$25000.00} per person coverage limit. XXXX. XXXX, which permits recording when XXXX party to the conversation consents.

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