Compiled from Public Data by FairShake
The US government’s Consumer Financial Protection Bureau (CFPB) collects complaints against financial companies.
In 2019, the CFPB received 1354 complaints against USAA. USAA ranked Number 23 among all financial companies for the most complaints.
Date of Complaint: December 10, 2019
Company Official Name: UNITED SERVICES AUTOMOBILE ASSOCIATION
State: PA
Product: Mortgage
Sub-Product: VA mortgage
Issue: Trouble during payment process
Full Complaint:
To Whom It May Concern : The purpose of this letter is to inform you of my grievance with USAA Bank and to have this be settled in a proper timeframe. In XX/XX/XXXX, I received a letter from the VA stating that as a service connected veteran at the time that I took out my mortgage with USAA on XX/XX/XXXX, I did not need to pay the VA home loan funding fee, and therefore I was having that funding fee be returned to me. I contacted the VA and spoke with XXXX XXXX, and informed him that not only did I have to pay that funding fee, but since I did not have that unexpected {00.00}, I had to not only take out an additional loan to roll that amount into my mortgage, but I also had to accept a higher APR in order to do that. I very specifically remember originally qualifying for a 3.25 % APR, but because I did not have that extra {00.00} for the funding fee, I was told that I could roll that amount into my mortgage as an extra loan, but in order to do this, I would have to increase my APR to 3.75 %. Due to life circumstances at that time I very distinctly remember having to increase my APR from 3.25 % to 3.75 % due to not having that additional {00.00}.
I am very grateful that the VA after six and a half years realized that their service connected veteran paid a funding fee that she was not supposed to pay and refunded me directly, but I am quite outraged by USAAs handling of this situation since I brought this to their attention. I first contacted USAA around XX/XX/XXXX and tried explaining my situation to them. To me, this is not only about a {00.00} refund. My time value of money has been greatly compromised, and as a service connected veteran I was defrauded by a USAA bank representative. If I wasnt entrapped by that USAA representative to have to pay that {00.00} funding fee, my mortgage loan would have been {0000.00} at 3.25 % APR, which would have been a monthly mortgage payment of {0.00}, and my loan amount today would be {0000.00}. But as it is, my loan amount was {0000.00} at 3.75 % APR which has been a {0.00} monthly payment and currently has a balance of {0000.00}.
Through my conversations with USAA, I have spoken with XXXX XXXX, who back on XX/XX/XXXX told me that USAA would only pay me {0.00}, representative of the interest that I paid on that {00.00} funding fee, which they have now acknowledged that they did receive notification from the VA on XX/XX/XXXX that I did not need to pay, when again, my closing date was XX/XX/XXXX, and I was not notified of this until the VA letter XX/XX/XXXX. This settlement amount does not represent my time value of money, and does not account for the fact that my loan amount should have only been {0000.00} and not {0000.00}, thereby making my monthly payment {0.00}, even if you do not count the discrepancy in my APR. In my last email communication with XXXX XXXX on XX/XX/XXXX, I discussed that even if USAA does not endorse my claim that one of their employees defrauded me of that lower APR, the {.00} monthly overpayment for a loan that should have never included that {00.00} funding fee should also be considered in their settlement. I have yet to receive any reply.
I hope that you take the time to consider my grievance, and you also consider my time value of money in all of this and I am reimbursed accordingly.
Warm regards,
Complaint Tags: Servicemember
Response Type: Closed with 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.