May 2017 Complaints Against USAA

Compiled from Public Data by FairShake

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In 2017, the CFPB received 1093 complaints against USAA. USAA ranked Number 31 among all financial companies for the most complaints.

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Complaint Details:

Date of Complaint: May 23, 2017


State: VA

Product: Payday loan, title loan, or personal loan
Sub-Product: Personal line of credit

Issue: Getting a line of credit

Full Complaint:
On Saturday, XX/XX/XXXX I spoke with XXXX , USAA representative ( USAA rep ) to apply for a {000.00} debt consolidation loan. The USAA rep explained that USAA does not offer debt consolidation loans, but instead just a loan, which I may disburse to my creditors at my discretion. My response was I wanted to move forward and apply for {000.00} loan. Although I have never been offered or applied for a consumer loan with USAA, I am an established insurance customer of USAA for several years. I started out insuring XXXX vehicle and I now have XXXX vehicles and XXXX family members under my policy. My XXXX product was the secured USAA XXXX XXXX Card to help re-build my credit which I was able to deposit the maximum {00.00} and after several years, I closed the accou nt for two reasons 1 ) I was declined for an unsecured USAA XXXX XXXX Card-after being approved for a Platinum Card by XXXX XXXX 2 ) because my credit had been established well enough to be approved for generous amounts of credit by multiple entities including a USAA Visa which was the lowest amount of {00.00} until a few months ago I asked for an increase and is now {000.00} ( which lags behind other lending institutions ). In addition to access to unsecured bank credit cards, high end department store cards, and personal loans from XXXX credit unions, car purchases/leases, and last but not least I qualified for a VA Jumbo Home Loan for {0000.00} which I began to build in XX/XX/XXXX and closed XX/XX/XXXX which is solely in my name. Also, seemingly going through the grueling process of purchasing a home and verifying income and providing supporting documentation from the IRS, bank statements, employment verificatio n, 100 percen t on time payment history on all accounts for many years, and etc. Which all speaks volumes to my employment history, credit worthiness, stability, and income model. However, I sensed that after I stated my annual access income is {0000.00} and the tonality and posturing in the USAA reps voice began to change and become condescending and the profiling began as if it was a ridiculous amount of money for someone like me ( XXXX XXXX Woman ) to have access too. The USAA rep began to demonstrate implicit bias and by the time she ran my credit, placed me on hold, and came back to the phone it was full-blown explicit bias that I felt, which is properly termed in this incident as disparate treatment which induced disparate impact. So, I then broke the income down for her and explained that my income is {0000.00} per year and the income that I have access from my husband is {00.00} per month, which is {0000.00} per year for a total of {0000.00} per year. USAA rep went on to discourage me from using my husbands income because Id stated this would be an individual application, not a joint application. It was then stated that if the {00.00} was alimony or child support I could use it, but since it was my husband it had to be a joint application. Sounds like Im being penalized for having a husband and not an ex-husband-discrimination based on marital status. I began to explain to USAA rep that the stated income has been used on all of my credit applications and lending institutions from car buying/leasing, to credit cards, and consumer loans from other banking institutions without fail and most recently as a compensating factor for home purchase. The only lender that Ive had to verify income was for building/purchasing a home in XX/XX/XXXX , increments during that time and right before closing recently in XX/XX/XXXX . USAA rep stated that the application would need to be reviewed by the Underwriter which came back requiring income verification with XXXX recent pay check stubs. My response was thats not a problem, but why? My credit application/report supports my income model, and my stated income. I also asked if USAA required all applicants to submit these documents for consumer loans because nothing was ever mentioned about my credit score, credit worthiness, or the fact that I had again paid off over {00.00} on my USAA credit card just days prior to the loan request which they held the check for seven ( 7 ) busi ness days endorsed by my credit union. There is a disparate treatment which is causing disparate impact based on my race, sex, and marital status. I asked to speak with the Underwriter, but I was told there was onl y one of duty for the day. Then I asked for my call to be escalated to a USAA supervisor, and thats when XXXX announced herself and she began to explain that USAA is a conservative lender and there are triggers as to whom to ask for verifiable information because the bank wants to protect itself from fraud. I explained to her that this level of conservativeness is beginning to look more like discrimination. She went on to give the disclaimer that USAA does not discriminate based on race, religion, etc. I told her shes paid to say that, but just like XXXX XXXX , XXXX XXXX XXXX , XXXX , and so many other institutions, they were still found to be in violation of the fair lending practices. By now, Im sure I am a victim of USAA by means of comparative evidence of disparate treatment and disparate impact requiring additional documentation that is required for triggers. USAA please define triggers as to be sure not to discriminate certain groups of people from the standard for fair lending practices without exceptions or discretion of reps and underwriters profiling deserving applicants. I wanted to know if USAA is conducting lending practices with a different set of rules beyond Equal Credit Opportunity Act ( ECOA ), abiding by Consumer Financial Protection Bureau ( cfpb ). Since that time I have receive d two mailings, one dated XX/XX/XXXX stating that before they can make a decision on my application I need to submit XXXX Most Recent Paystubs with XXXX Most Recent XXXX Form, this is more than what was initially asked for during the phone call, which further lets me know that USAA is guilty of Disparate Treatment and Impact which explicit discrimination. Since when does someone submit XXXX forms for a consumer loan? The second letter dated XX/XX/XXXX signed by XXXX XXXX , Vice President, Loan Experiences, USAA Federal Savings Bank states Notice of Decision for {000.00} Consumer Loan was not approved because Insufficient or lack of income. If there was true justification for closing the loan, it should have been for incomplete application or an issue with my credit score XXXX ( which declined since I purchased home ), or additional information required. Overall, the consumer loan application process with USAA rep, Underwriter, and Supervisor left a lot to be desired. It appears that USAA has no problem with me paying them insurance money and paying high interest on their credit cards, but there is disparity in loaning money to deserving customers all while using the money that is paid to them for their conservative loan applicants. My credit profile is a testament to my discipline, hard work, stability, and efforts to obtain and maintain the American Dream, but institutions that continue to redline XXXX XXXX is the core reason there is disconnect with achieving these very things. If anything, USAA needs to be courting me with various products to increase my portfolio with their services.

Complaint Tags: Servicemember

Company response:

Response Type: Closed with explanation

Public Response:
Company believes it acted appropriately as authorized by contract or law

FairShake accessed this complaint from the public archives of the Consumer Financial Protection Bureau (CFPB). You can file your own complaint with the CFPB here.