The US Consumer Financial Protection Bureau has reached a settlement with USAA Federal Savings Bank, a federally chartered savings association based in San Antonio, Texas.
Image: The USAA office in Colorado Springs, Colorado. Photo: courtesy of David Shankbone/Wikipedia.org.
As described in the consent order, the Bureau found that USAA violated the Electronic Fund Transfer Act and Regulation E by failing to properly honor consumers’ stop payment requests on preauthorized electronic fund transfers, and by failing to initiate and complete reasonable error resolution investigations.
USAA also violated the Consumer Financial Protection Act of 2010 by reopening deposit accounts consumers had previously closed without seeking prior authorization or providing adequate notice.
Under the terms of the consent order, USAA must, among other provisions, provide approximately $12 million in restitution to certain consumers who were denied a reasonable error resolution investigation, and pay a $3.5 million civil money penalty.
Source: Company Press Release