Why did USAA get sued?
Asked by: Jettie Lakin | Last update: January 7, 2026Score: 4.5/5 (18 votes)
What did USAA get in trouble for?
The order alleges the bank has engaged in “unsafe or unsound practices, including those related to management, earnings, information technology, consumer compliance and internal audit; suspicious activity reporting violations; and noncompliance with guidelines establishing heightened standards applicable to the bank.”
What went wrong with USAA?
The order against USAA, made public Wednesday, directs the bank to fix “a range of deficiencies,” after the regulator found unsafe or unsound practices related to management, earnings, information technology, consumer compliance and internal audit and suspicious activity reporting violations.
What are the legal issues with USAA?
The San Antonio-based USAA, which provides a range of financial services to U.S. military members and their families, has been faulted for weak anti-money laundering controls, charging military members higher interest rates than allowed under federal law, poor customer service, and more.
What is the USAA interest lawsuit?
The lawsuit, filed in 2021, argued that USAA continually failed to reduce the interest rates service members paid on loans to 6% — a low rate they're eligible for when they're preparing for active duty. Lenders can't charge higher interest rates on that loan after military customers leave active duty.
What US Insurance Companies Aren’t Telling You | Informer
Why does USAA have an F rating?
A check of the BBB website provides a few answers. The failing grade is due to two stated reasons. The first is that the company agreed this year to a $15 million settlement with the U.S. Consumer Financial Protection Bureau over how USAA's banking arm mishandled thousands of personal checking accounts.
How is USAA doing financially?
USAA reported a net income of $1.2 billion and improved its net worth by $1.7 billion, or 6% year over year, ending the year at $29.1 billion. Additionally, revenues increased by 17% in 2023 for a total of $42.5 billion, driven by strong product revenue performance across all three lines of business.
Is my money safe with USAA?
Yes. Funds in a USAA FSB F S B savings account are insured up to the limits that the Federal Deposit Insurance Corp. (FDIC) set (F D I C) set (Opens in a new window). That means that the FDIC F D I C protects the money against loss in the unlikely event that the bank fails.
Is there a problem with USAA right now?
No, we are not detecting any problems with USAA right now.
The last outage detected for USAA was on Friday, January 17, 2025 with a duration of about 2 hours.
Is USAA being bought out?
On July 26, 2019, the Charles Schwab Corporation announced it would acquire USAA's investment management and brokerage accounts for $1.8 billion. The deal with Charles Schwab closed on May 26, 2020.
Is USAA laying off employees in 2024?
USAA continues to hire across the company in line with changing business needs, including more than 8,300 jobs filled so far this year, and remains focused on providing our members with exceptional products and service," Wildermuth told MySA in an email. This would be the second round of layoffs in 2024.
What are the disadvantages of USAA?
- Not all homeowners can qualify for USAA.
- Customer service hours are limited.
- May not offer as many discounts as some carriers.
Who is over USAA?
Wayne Peacock is the president and chief executive officer of USAA. Founded in 1922 as an insurance association serving military families, USAA is one of America's leading financial services companies, offering insurance, banking, and investment and retirement solutions to nearly 14 million members.
What is the lawsuit against USAA?
USAA overcharged some customers during and after active-duty periods and “illegally” raised rates on some veterans, the plaintiffs said. Additionally, the lawsuit spotlighted two USAA products — “extended vehicle protection” and “debt protection” offerings – that plaintiffs called “useless.”
Can veterans still use USAA?
Military Eligibility for USAA Insurance
The target eligible group for USAA is current and former military members. Current embers from any branch of service may be eligible for coverage. These branches include the following: Air Force.
Does USAA have financial problems?
Significant Issues Abound at USAA
The bank subsidiary has also been struggling to turn a profit in recent years, reporting a pretax loss of $398 million in 2023. S&P Global Ratings in May said it does not expect the bank to return to profitability until 2025.
What is going on with USAA bank?
WASHINGTON—The Office of the Comptroller of the Currency (OCC) today issued a comprehensive cease-and-desist order (order) against USAA Federal Savings Bank (bank) to require the bank to correct a range of deficiencies. This order replaces prior cease-and-desist orders issued against the bank in 2019 and 2022.
Why did USAA move its headquarters?
USAA Federal Savings Bank has about 4,300 employees in San Antonio and about 775 in Phoenix, and it says no bank services, operations or employees are moving to Arizona as a result of changing headquarters. A spokesman described the change as administrative, calling it a “paper move” meant to “simplify our operations.”
Is USAA hard to deal with?
USAA can be a surprisingly difficult insurance company to deal with after a car crash. However, this company continues to have a respected reputation and a growing number of policyholders.
Where is the safest place to put money if banks collapse?
Federal bonds are considered to be very safe. However, returns can be low. Real estate investments can produce income but may be risky. Precious metals, especially gold, offer an alternative to stocks and bonds.
How financially strong is USAA?
The military insurer reported a net income of $1.2 billion and increased its net worth by $1.7 billion, or 6% year over year, ending the year at $29.1 billion. Additionally, revenues rose by 17% in 2023 to $42.5 billion, driven by strong product revenue performance across all three lines of business.
Why are USAA premiums so high?
High Standards of USAA
They provide an exceptional range of coverages that protect against numerous perils, often surpassing the standard offerings of other insurance companies. This excellence, while attracting many homeowners, contributes to the higher cost of their insurance policies.
Where does USAA rank in banking?
Over the past eight years, USAA Bank has raked in the No. 1 spot in terms of bank reputation, scoring highly with both members and non-members of the military-serving institution. Regardless of leadership turnover and data breaches plaguing the San Antonio-based company, national faith in the banker remains strong.
How much does USAA CEO make?
USAA President and CEO Wayne Peacock was paid at least $8.1 million in 2023, an increase of more than two-thirds of his 2022 compensation of $4.8 million.