The Consumer Financial Protection Bureau (CFPB) has fined USAA $12 million for failing to honour consumers' requests to stop payments and undertake reasonable error resolution investigations.
As well as violations of the Electronic Fund Transfer Act, the consumer watchdog also found USAA in contempt of the Consumer Financial Protection Act of 2010 by reopening deposit accounts consumers had previously closed without seeking prior authorisation or providing adequate notice.
Under the terms of a consent order, USAA must pay an estimated $12 million in restitution to customers who didn’t get a reasonable error resolution investigation, as well as pay a $3.5 million civil money penalty.