Compiled from Public Data by FairShake
The US government’s Consumer Financial Protection Bureau (CFPB) collects complaints against financial companies.
In 2018, the CFPB received 1126 complaints against USAA. USAA ranked Number 32 among all financial companies for the most complaints.
Date of Complaint: September 20, 2018
Company Official Name: UNITED SERVICES AUTOMOBILE ASSOCIATION
State: SC
Product: Payday loan, title loan, or personal loan
Sub-Product: Installment loan
Issue: Charged fees or interest you didn’t expect
Full Complaint:
I initially applied with USAA in regard to a loan to purchase a boat. I received approval and went boat shopping. Upon finding a boat with a dealer in Florida I set about finalizing the financing with USAA. The boat dealer required a wire transfer from USAA for the purchase of the boat. USAA refused to wire the money ( per their policy ) and suggested I find another boat dealer. My conversation at this point was that I was buying this boat and perhaps I should find another lender. The representative at USAA had a solution for this. The solution was that rather than go to another lender, I should simply acquire a personal loan from USAA for the same amount as the boat loan. I was told that I would be sent a personal check that I could deposit and in turn wire the funds to the boat dealer directly from my account. I was told that once I had possession of the boat I needed simply to call USAA and have the personal loan transferred into the initial boat loan for which I applied because the interest rate on the personal loan was much higher. I was quoted 7.94 % apr on the boat loan, the personal loan which I only intended to have for a weekend was at something around 13 %. Upon taking possession of the boat I called USAA and set about the process of transferring the loan to the boat loan that I was previously quoted. This is where the problem began. I was told by a new representative that I could not transfer to the boat loan that I was already approved for but had to apply for a new boat loan ( this time for a boat refinance rather than a purchase ). I was disgruntled at this point but went ahead with the application as I was told I did not have a choice. I went ahead with the application and was approved. The rate however, since this was a now a boat refinance rather than a purchase was at 11.94 % apr which was a full 4 % higher than what I was initially quoted. I this point I was upset and asked for a supervisor. After a 5 minute wait I was speaking a manager. The manager could not help but said I could speak to the escalation department ( they handle complaints ). After a wait of at least 30 minutes I was on the phone with an escalation specialist and formally logged a complaint. I was told that my call recordings would be pulled and there would be a resolution reached in 2 to 3 weeks. I called back in 5 weeks after not hearing from them and asked for an update to which I was told there was none to give. Please keep in mind that I am paying over 13 % interest at this time ( the wait for this resolution has cost me an additional {0.00} in interest compared to the loan I was initially promised ). It has now been almost 60 days since I have been forced to accept the terms of USAA ‘s loan and still no call back or resolution reached. I have been a residential mortgage lender for the past 9 years and a USAA customer for the past 8. I have never experienced nor imagined such blatant bait and switch activities. I am well versed in consumer finances and aware of the laws in regards to quoting interest rates etc due to my career. I can only imagine the offenses committed by USAA toward consumer with less financial knowledge. I would like a resolution to this in the form of receiving the initial loan I was offered ( USAA somehow is ” having issues ” retrieving the recorded phone calls ) and a credit towards the balance for every penny of additional interest I have paid on this high rate product that I would have never agreed to if not for the promise of an easy transfer to the initial loan terms that I agreed to. My payment is almost double with this loan as what it was with the loan that I was quoted.
Response Type: Closed with non-monetary relief
Public Response:
Company believes complaint is the result of an isolated error
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.