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USAA Federal Savings Bank Settles with CFPB

USAA Federal Savings Bank Settles with CFPB

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On January 3, 2019, the Consumer Financial Protection Bureau (“CFPB”) announced a settlement with USAA Federal Savings Bank, a federally chartered savings association headquartered in San Antonio, Texas.

As described in the consent order, the CFPB 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 Federal Savings Bank must, among other provisions, provide approximately $12 million in restitution to certain consumers who were denied a reasonable error resolution investigation, in addition to paying a $3.5 million civil money penalty.

Source: CFPB

Kehoe Law Firm, P.C.