More Bad News for USAA Bank

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SueG5123
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More Bad News for USAA Bank

Post by SueG5123 »

From The Houston Chronicle this morning, federal regulators have taken action against USAA Federal Savings Bank for “engaging in unsafe or unsound banking practices.”

USAA seems to be violating the trust with its clientele.
linenfort
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Re: More Bad News for USAA Bank

Post by linenfort »

My parents had a lot of problems with them in 2018. Very disappointing.
I think their insurance arm is still ok.
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Frobie
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Re: More Bad News for USAA Bank

Post by Frobie »

cheezit
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Re: More Bad News for USAA Bank

Post by cheezit »

linenfort wrote: Sat Feb 16, 2019 7:46 am My parents had a lot of problems with them in 2018. Very disappointing.
I think their insurance arm is still ok.
At least for auto insurance, I find their current rates terrible. My premium for two cars went down >45% for identical coverage by switching, wish I'd rate-shopped a couple of years sooner.
mouth
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Re: More Bad News for USAA Bank

Post by mouth »

Interesting. I just went to make a mobile check deposit today, I do them about weekly, and they had me agree to new terms of service for how I have to endorse the check or it might be rejected. Basically enforcing the need to write, "For mobile deposit USAA FSB [account number]" They always wanted you to do it but didn't enforce it and I've been lazy some times.

I've been using USAA banking since Bank of America lost my business for life, and I was with them before they merged with NationsBank. I still have no complaints with their banking but I know people out there have had problems. No bank is perfect [shrug]
mouth
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Re: More Bad News for USAA Bank

Post by mouth »

cheezit wrote: Sat Feb 16, 2019 8:37 am
linenfort wrote: Sat Feb 16, 2019 7:46 am My parents had a lot of problems with them in 2018. Very disappointing.
I think their insurance arm is still ok.
At least for auto insurance, I find their current rates terrible. My premium for two cars went down >45% for identical coverage by switching, wish I'd rate-shopped a couple of years sooner.
I admit it has been a minute since I comparison shopped. Maybe I'll give it a look. That said, I can say without a doubt the times I've had to file a claim for auto or my homeowners insurance ... and my umbrella coverage when I was sued ... I have had stellar service. Never pushback, always responsive, never pushing me to cheaper options. I'm not sure how much I'd be willing to "save" for the risk of lower quality of service.

Full disclosure, I was an officer and I know that USAA bluntly charges enlisted troops and dependents higher rates.
THY4373
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Re: More Bad News for USAA Bank

Post by THY4373 »

mouth wrote: Sat Feb 16, 2019 8:44 am Full disclosure, I was an officer and I know that USAA bluntly charges enlisted troops and dependents higher rates.
There was a thread here where somebody posted the different tiers of USAA. The lower the tier the more like kely you are to pay more. As the child of an officer I am in the second tier. My ex who qualified through me was dropped to the third tier (USAA Garrison) post divorce and her costs went up 20-30% for same house and car. She is with Amica now.
rooms222
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Re: More Bad News for USAA Bank

Post by rooms222 »

According to one of my credit unions that gave a clear explanation about the mobile deposit change, there has been a recent change to the banking regulations to explicitly allow putting mobile deposit endorsements on checks. Expect this change with most institutions. Some were requiring it previously, but there may not have been the backup in the regulations to force doing so until now.
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White Coat Investor
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Re: More Bad News for USAA Bank

Post by White Coat Investor »

THY4373 wrote: Sat Feb 16, 2019 9:44 am
mouth wrote: Sat Feb 16, 2019 8:44 am Full disclosure, I was an officer and I know that USAA bluntly charges enlisted troops and dependents higher rates.
There was a thread here where somebody posted the different tiers of USAA. The lower the tier the more like kely you are to pay more. As the child of an officer I am in the second tier. My ex who qualified through me was dropped to the third tier (USAA Garrison) post divorce and her costs went up 20-30% for same house and car. She is with Amica now.
It's best for officers. Membership has its privileges.

I have heard that GEICO often beats their insurance rates. I'm willing to pay a little more for the service I've had for claims in the past and not sure how GEICO's would be, but haven't gotten around to really switching around. Inertia and all that. I get the sense that there is A LOT of inertia among USAA clients.
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Stoic9
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Re: More Bad News for USAA Bank

Post by Stoic9 »

Very disappointed, been with them for 30+ years strictly out of loyalty and ease of service. I hope to see some heads role and some new talent that places mission and customers first.
mouth
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Re: More Bad News for USAA Bank

Post by mouth »

rooms222 wrote: Sat Feb 16, 2019 10:06 am According to one of my credit unions that gave a clear explanation about the mobile deposit change, there has been a recent change to the banking regulations to explicitly allow putting mobile deposit endorsements on checks. Expect this change with most institutions. Some were requiring it previously, but there may not have been the backup in the regulations to force doing so until now.
"explicitly allow" ??? Are you saying it wasn't allowed before and/or they just didn't care? And either way, "allow" isn't the same as require. The change in terms of service I read today when I went to deposit were pretty clear that now I HAD to do it, not that I could.

I'm just fishing for the precise wording because what you said seems not quite right to what I think / guess you actually mean ... but I don't want to assume and I'm just curious.
mouth
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Re: More Bad News for USAA Bank

Post by mouth »

White Coat Investor wrote: Sat Feb 16, 2019 10:24 am
THY4373 wrote: Sat Feb 16, 2019 9:44 am
mouth wrote: Sat Feb 16, 2019 8:44 am Full disclosure, I was an officer and I know that USAA bluntly charges enlisted troops and dependents higher rates.
There was a thread here where somebody posted the different tiers of USAA. The lower the tier the more like kely you are to pay more. As the child of an officer I am in the second tier. My ex who qualified through me was dropped to the third tier (USAA Garrison) post divorce and her costs went up 20-30% for same house and car. She is with Amica now.
It's best for officers. Membership has its privileges.

I have heard that GEICO often beats their insurance rates. I'm willing to pay a little more for the service I've had for claims in the past and not sure how GEICO's would be, but haven't gotten around to really switching around. Inertia and all that. I get the sense that there is A LOT of inertia among USAA clients.
You nailed it on inertia. But on top of that, is also the lack of an impulse (to keep the physics analogy ;) ) to move me like poor service or jump in rates.
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Re: More Bad News for USAA Bank

Post by birnhamwood »

I'm in my 63rd year at USAA, beginning in 1958 with automorile insurance and adding banking and investments as they have grown. I have never had a single complaint, but I do believe the culture and operations are slowly changing from a duty-honor-country business and ethical code (in the beginning) to something a little more modern, a little more Wallstreety. Small changes so far but I do believe they are there.
rooms222
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Re: More Bad News for USAA Bank

Post by rooms222 »

mouth wrote: Sat Feb 16, 2019 4:29 pm
rooms222 wrote: Sat Feb 16, 2019 10:06 am According to one of my credit unions that gave a clear explanation about the mobile deposit change, there has been a recent change to the banking regulations to explicitly allow putting mobile deposit endorsements on checks. Expect this change with most institutions. Some were requiring it previously, but there may not have been the backup in the regulations to force doing so until now.
"explicitly allow" ??? Are you saying it wasn't allowed before and/or they just didn't care? And either way, "allow" isn't the same as require. The change in terms of service I read today when I went to deposit were pretty clear that now I HAD to do it, not that I could.

I'm just fishing for the precise wording because what you said seems not quite right to what I think / guess you actually mean ... but I don't want to assume and I'm just curious.
The change to the regulations explicitly allows them to require you to put that on the check. Some institutions already required it, but it was not clear if the regulations allowed them to do so. It is now clear they can make you do it.

It's on page 4 of the newsletter- https://www.psecu.com/-/media/pdf/newsl ... 00A6B9B064
02nz
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Re: More Bad News for USAA Bank

Post by 02nz »

This explains the phone call I got a few months ago from USAA, asking about ACH transfers in/out of my checking account. The transfers in question predated the call by 3-6 months, so I found it rather strange at the time. They probably realized they were behind on their risk management/due diligence.

I've generally been satisfied with the banking and insurance side of USAA. (Investments are a different story - I left them a long time ago.) But that strange letter from the CEO late last year did prompt me to start thinking about moving my business elsewhere. I have a savings account with Ally and have been very happy with them, so that's a possibility.
wootwoot
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Re: More Bad News for USAA Bank

Post by wootwoot »

As an officer I've had great service and pricing from USAA. They get an undeserved bad rep on this forum. Also the title says "more bad news", what was the original "bad" news?
Anon E. Moose
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Re: More Bad News for USAA Bank

Post by Anon E. Moose »

I like USAA, and use them as my primary checking account which all the pays go into and all bills get paid from. Never an issue, and I like their web interface much more than Navy Federal.

Having said that, their insurance rates are outright terrible, I've had my insurance elsewhere for the last 10 years.
nix4me
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Re: More Bad News for USAA Bank

Post by nix4me »

Been with them my entire adult life. Their insurance rates are now officially terrible. I pulled all my insurance from them and got twice the coverage for half the price. Their banking is still ok but I’m holding my breath.
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TheTimeLord
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Re: More Bad News for USAA Bank

Post by TheTimeLord »

cheezit wrote: Sat Feb 16, 2019 8:37 am
linenfort wrote: Sat Feb 16, 2019 7:46 am My parents had a lot of problems with them in 2018. Very disappointing.
I think their insurance arm is still ok.
At least for auto insurance, I find their current rates terrible. My premium for two cars went down >45% for identical coverage by switching, wish I'd rate-shopped a couple of years sooner.
Until you try to make a claim. No one handles claims better or more smoothly with few preconditions from my experience. People with discount insurance might be disappointed if they ever actual need their insurance to cover something.
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wootwoot
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Re: More Bad News for USAA Bank

Post by wootwoot »

TheTimeLord wrote: Sun Feb 17, 2019 10:18 am
cheezit wrote: Sat Feb 16, 2019 8:37 am
linenfort wrote: Sat Feb 16, 2019 7:46 am My parents had a lot of problems with them in 2018. Very disappointing.
I think their insurance arm is still ok.
At least for auto insurance, I find their current rates terrible. My premium for two cars went down >45% for identical coverage by switching, wish I'd rate-shopped a couple of years sooner.
Until you try to make a claim. No one handles claims better or more smoothly with few preconditions from my experience. People with discount insurance might be disappointed if they ever actual need their insurance to cover something.
This x1000. USAA and Amica are consistently ranked as having the best customer service in auto insurance and it makes all the difference when something happens to you. About 6 months ago I reached out to Amica after reading how bad USAA rates are on this forum. It turns out that Amica wanted 10% more for slightly lower coverage, no thanks I'll stick with the best for less.
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I am in the same boat White Coat

Post by Socrates »

I have heard that GEICO often beats their insurance rates. I'm willing to pay a little more for the service I've had for claims in the past and not sure how GEICO's would be, but haven't gotten around to really switching around.
Been a USAA member through my father for 25 plus years. The few claims I have had, have been handled very quickly with no hassles - outstanding customer service. I am reluctant to leave, but I don't know if I am missing out as service/rates may have changed over the years.
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Re: More Bad News for USAA Bank

Post by LadyGeek »

This thread is now in the Personal Finance (Not Investing) forum (bank).
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ma2jo
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Re: More Bad News for USAA Bank

Post by ma2jo »

Does anyone have feedback for me about USAA medigap insurance. Should I take the negative comments above to avoid this?
tj
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Re: More Bad News for USAA Bank

Post by tj »

ma2jo wrote: Sun Feb 17, 2019 5:56 pm Does anyone have feedback for me about USAA medigap insurance. Should I take the negative comments above to avoid this?

If usaa is competitive on medigap, no reason not to use it.
Noalani
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Re: More Bad News for USAA Bank

Post by Noalani »

My husband and I had both been with USAA since we were teenagers. Both of our fathers served in military/ foreign service. We were loyal for decades and then one day I compared premiums with my friend who uses a local State Farm agent. I was floored at how much more we had been paying over the years. I dropped USAA that month and have never looked back.
magister
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Re: More Bad News for USAA Bank

Post by magister »

We left USAA’s bank several years ago after suffering very serious and repeated problems with the online bill pay feature. We also had perhaps the worst customer service experience of our lifetimes when one of our term life premiums was misdirected to our auto policy. After 6+ hours on the phone and weeks of waiting, the problem still hadn’t been corrected, and we feared the policy would lapse. In the end we had to apply for term policies with another firm. To this day I am astonished by how incompetently the issue was handled.

We still have auto and renter’s insurance with USAA, but only because our credit card is billed directly. I would never trust USAA to correctly credit a payment received by check or electronic transfer. I should say that if it were up to me, I would have pulled all my business from USAA long ago. But DW has a sentimental attachment to them, so we retain auto and renter’s insurance. Hopefully we won’t regret it if we ever have a claim.
Last edited by magister on Sun Feb 17, 2019 10:36 pm, edited 1 time in total.
nix4me
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Re: More Bad News for USAA Bank

Post by nix4me »

Noalani wrote: Sun Feb 17, 2019 10:27 pm My husband and I had both been with USAA since we were teenagers. Both of our fathers served in military/ foreign service. We were loyal for decades and then one day I compared premiums with my friend who uses a local State Farm agent. I was floored at how much more we had been paying over the years. I dropped USAA that month and have never looked back.
Yep - me too - went to Progressive.
And they forced all Floridians out of home insurance after the 04 hurricanes.
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Re: More Bad News for USAA Bank

Post by talzara »

nix4me wrote: Sun Feb 17, 2019 10:34 pm Yep - me too - went to Progressive.
And they forced all Floridians out of home insurance after the 04 hurricanes.
That's not true. USAA is the only large national homeowners insurer that stayed in Florida after the 2004-2005 hurricanes.

Of the ten largest homeowners insurers in Florida today, eight are single-state companies. This includes State Farm Florida, which was created for the purpose of going bankrupt if a severe hurricane makes a direct strike on Miami. The real State Farm left Florida after 2004.

The other two are USAA and Progressive, which are large national companies. USAA is the only top-10 company in 2004 that's still a top-10 company today. Progressive bought a homeowners insurer in 2014.
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Re: More Bad News for USAA Bank

Post by nix4me »

talzara wrote: Mon Feb 18, 2019 12:20 pm
nix4me wrote: Sun Feb 17, 2019 10:34 pm Yep - me too - went to Progressive.
And they forced all Floridians out of home insurance after the 04 hurricanes.
That's not true. USAA is the only large national homeowners insurer that stayed in Florida after the 2004-2005 hurricanes.

Of the ten largest homeowners insurers in Florida today, eight are single-state companies. This includes State Farm Florida, which was created for the purpose of going bankrupt if a severe hurricane makes a direct strike on Miami. The real State Farm left Florida after 2004.

The other two are USAA and Progressive, which are large national companies. USAA is the only top-10 company in 2004 that's still a top-10 company today. Progressive bought a homeowners insurer in 2014.
What I said is true, happened to me. They raised rates every year but said they wouldn’t cancel. Basically grandfathered those that had insurance but continued raising rates. Then they suspended all new policies in Florida unless the person was active duty. Otherwise, no policy. So by raising rates to unrealistic levels, they “forced” us to go with a new company that actually cares about people in Florida. When I moved in 2015, forced to get new policy with someone else.

It is true.
talzara
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Re: More Bad News for USAA Bank

Post by talzara »

nix4me wrote: Mon Feb 18, 2019 12:56 pm What I said is true, happened to me. They raised rates every year but said they wouldn’t cancel. Basically grandfathered those that had insurance but continued raising rates. Then they suspended all new policies in Florida unless the person was active duty. Otherwise, no policy. So by raising rates to unrealistic levels, they “forced” us to go with a new company that actually cares about people in Florida. When I moved in 2015, forced to get new policy with someone else.
Refusing to write new policies is not the same as "forced all Floridians out of home insurance." It makes sense for USAA to give priority to active-duty personnel, since the military doesn't always give you a choice of where to move.

USAA did not raise rates "to unrealistic levels." It was the pre-2004 rates that were unrealistically low. Other homeowners insurance companies also raised their rates after the 2004-2005 hurricanes. Florida now has the highest homeowners insurance rates of any state, higher than even Texas.

Insurance is individually priced. The highest-priced company for one person may be the lowest-priced company for another person. Despite writing no new policies for several years, USAA's market share went from 5.1% in 2004 to 4.3% in 2017. To maintain their market position, USAA's rates must be competitive with the rest of the market.
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Re: More Bad News for USAA Bank

Post by krafty81 »

Been with USAA since 77. They have handled some unusual claims for our family. Very happy with USAA Federal Savings Bank as well. I'm not going anywhere.
Golf maniac
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Re: More Bad News for USAA Bank

Post by Golf maniac »

Sorry USAA is underwriting in Florida. I just moved to Florida for retirement and USAA underwrote my policy at a very competitive rate and even provided sinkhole insurance. I agree with others, I don’t mind paying a few hundred more each year to ensure any claims will be processed with minimal hassle.
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rocket354
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Re: More Bad News for USAA Bank

Post by rocket354 »

I'm surprised to read about all the people who get charged a lot from USAA. I do all my insurance (home, rental, auto) through them. For home and rental they were slightly better than my next best option. For auto they were less than half as much--I pay less than $30/mo. I've had no issues with them, but also haven't had to use their services yet; knock on wood. I appreciate not having to make shopping for insurance into an annual event.
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Re: More Bad News for USAA Bank

Post by mouth »

rooms222 wrote: Sat Feb 16, 2019 5:38 pm
mouth wrote: Sat Feb 16, 2019 4:29 pm
rooms222 wrote: Sat Feb 16, 2019 10:06 am According to one of my credit unions that gave a clear explanation about the mobile deposit change, there has been a recent change to the banking regulations to explicitly allow putting mobile deposit endorsements on checks. Expect this change with most institutions. Some were requiring it previously, but there may not have been the backup in the regulations to force doing so until now.
"explicitly allow" ??? Are you saying it wasn't allowed before and/or they just didn't care? And either way, "allow" isn't the same as require. The change in terms of service I read today when I went to deposit were pretty clear that now I HAD to do it, not that I could.

I'm just fishing for the precise wording because what you said seems not quite right to what I think / guess you actually mean ... but I don't want to assume and I'm just curious.
The change to the regulations explicitly allows them to require you to put that on the check. Some institutions already required it, but it was not clear if the regulations allowed them to do so. It is now clear they can make you do it.

It's on page 4 of the newsletter- https://www.psecu.com/-/media/pdf/newsl ... 00A6B9B064
ahhhh i got ya now. Thanks for the clarity.
spooky105
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Re: More Bad News for USAA Bank

Post by spooky105 »

OCC Consent Order: https://www.occ.gov/static/enforcement- ... 19-001.pdf

Would be interesting to peak behind the curtain to know what the actual problems are. The above is pretty generic. Giving it a quick read and skimming the cited statues (not a lawyer) I can picture a few [somewhat humorous] possibilities:

1) Much like a unit inspection in the military, someone from OCC came by and asked to see the risk management / internal controls / audit management master plans. The guy / gal working in the office pointed at the thick binders on a shelf and the inspector took a gander. "These are five years old...you've gotta be kidding me...your company is XYZ larger since these were written" -- ding on the inspection report. Meanwhile, the four years before when someone from OCC came by and asked to see the above, the binders were pointed at and the inspector responded "great" while checking the relevant box on the inspection form.

2) Similar to the above, the bank does everything right but doesn't have a "plan" documenting it all. What the institution does or does not actually do is not the issue, best practice dictates a massive document laying out all of the policies, responsibilities, etc. covering risk management / internal controls / audit management...the absence of said document is a huge foul from the inspector's perspective.

3) You've got folks like this running around: https://www.armytimes.com/news/your-arm ... -colombia/ -- maybe some of them are bright enough to deposit their cash in their USAA bank account. Once they get caught and the investigation ensues, I imagine the bank gets a knock on the door with plenty of hard questions about why drug money flowing through the bank wasn't flagged.

Admittedly, all of the above gives USAA the benefit of the doubt. I could be wrong / surprised. But my gut feeling is that USAA has expanded to the point where it is under more scrutiny than before. And that scrutiny is highlighting regulatory / compliance queep that previously wasn't a factor when the organization had a smaller footprint.
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SueG5123
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Re: More Bad News for USAA Bank

Post by SueG5123 »

Love reading all the testaments of loyalty to USAA. I was there, baby: 40 years association, deeply entwined with banking-home loan-insurances-mutual funds-retail services. Then I noticed that customer service was crap and the rates were exorbitant. Got tired of USAA hiking my auto insurance thru the stratosphere (no accidents and 7 year old vehicles driven less than 5K per year). The banking is egregious. Quit the mutual funds years ago, as they were obscene.
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Re: More Bad News for USAA Bank

Post by BolderBoy »

talzara wrote: Mon Feb 18, 2019 12:20 pm This includes State Farm Florida, which was created for the purpose of going bankrupt if a severe hurricane makes a direct strike on Miami. The real State Farm left Florida after 2004.
This is a common business model for lots of insurance companies. I have personal knowledge that The Hartford and Chubb both are umbrella entities for perhaps a dozen or more little, wholly owned, insurance companies which you've likely never heard of. When you sign up with The Hartford or Chubb your policy has one of these sub-entities names on it.

And truly, it is a good business plan for them to do this.
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Re: More Bad News for USAA Bank

Post by mortfree »

rooms222 wrote: Sat Feb 16, 2019 5:38 pm

The change to the regulations explicitly allows them to require you to put that on the check. Some institutions already required it, but it was not clear if the regulations allowed them to do so. It is now clear they can make you do it.

It's on page 4 of the newsletter- https://www.psecu.com/-/media/pdf/newsl ... 00A6B9B064
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birdog
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Re: More Bad News for USAA Bank

Post by birdog »

The stories I hear from my friends who file claims with companies other than USAA and the experiences I've had when filing claims with USAA make me very willing to stay with USAA instead of switching to a lower cost company.
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TimeRunner
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Re: More Bad News for USAA Bank

Post by TimeRunner »

Happy with USAA Banking (small checking, small savings, primary CCs) and USAA home insurance. (Geico has the vehicles and umbrella.) I thought I needed a local bank, but after using one for a year, I closed those accounts and moved back to USAA. It works well for bill auto-payment, pension auto-deposit, etc. No need to use any of their other services. Never had an issue except when I tried to do a mortgage through them a couple of decades ago, which in retrospect was not the best choice as they were somewhat difficult to work with at that time.
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Isabelle77
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Re: More Bad News for USAA Bank

Post by Isabelle77 »

Also happy with USAA banking and insurance. And I'm one of those Garrison USAA members that supposedly get such a bad deal. Quote from Geico last month was $500 more a year for car insurance and our homeowners has barely budged in the 11yrs we've owned our home.

Honestly, they've always been so easy to deal with that I would pay a small premium just for the customer service. I certainly don't mind endorsing checks...
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Re: More Bad News for USAA Bank

Post by talzara »

BolderBoy wrote: Mon Feb 18, 2019 10:10 pm This is a common business model for lots of insurance companies. I have personal knowledge that The Hartford and Chubb both are umbrella entities for perhaps a dozen or more little, wholly owned, insurance companies which you've likely never heard of. When you sign up with The Hartford or Chubb your policy has one of these sub-entities names on it.
That's a very different risk profile.

In most cases, the insurance subsidiaries participate in an intercompany insurance pool. The companies pay 100% of their net premiums to the pool, and they cede 100% of their business to the pool. The subsidiaries cannot go bankrupt unless the whole pool goes bankrupt, because the reinsurance treaty provides unlimited coverage.

State Farm Florida is not a member of an intercompany pool. It has a reinsurance treaty with State Farm Mutual, but there is a coverage limit. When it hits the limit, State Farm Florida goes bankrupt. State Farm Mutual does not. They can rescue State Farm Florida voluntarily, but they can also walk away if the losses are catastrophic.

USAA doesn't do this. If you insure a house in Florida with USAA, you're covered by the same USAA as a house in Alaska. The same goes for Garrison and the other subsidiaries. The only single-state insurance company that USAA operates is in Texas.
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Re: More Bad News for USAA Bank

Post by Ketawa »

I had some serious issues with my USAA checking account. My main checking is done with NFCU. I used the USAA account for once monthly ACH transfers in and out of external accounts (prepaid cards earning 5% FDIC insured) that needed to show activity to avoid fees, keeping things separate from my main checking account. USAA's system for managing external transfers is...not great. After some issues, I cancelled everything to have a clean slate, confirmed through multiple means, and rescheduled them later. Everything worked correctly for 1 month, then randomly, the system reinstated the original transfers, and several accounts were overdrawn and charged fees. USAA restricted my external transfer ability (I can't blame them), so I switched to Ally, and I couldn't be happier with their system and interface. Of course, this a niche case. After stopping the external transfers, my USAA checking account was automatically closed due to lack of activity. I had no reason to keep it.

I am an officer and switched away from USAA auto & umbrella insurance after my rates increased substantially despite no claims or tickets. It always makes sense to price shop. In my case, I went with GEICO for over 50% off, and Amica was in the same ballpark as GEICO.
bayview
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Location: WNC

Re: More Bad News for USAA Bank

Post by bayview »

SueG5123 wrote: Sat Feb 16, 2019 7:36 am From The Houston Chronicle this morning, federal regulators have taken action against USAA Federal Savings Bank for “engaging in unsafe or unsound banking practices.”

USAA seems to be violating the trust with its clientele.
wootwoot wrote: Sat Feb 16, 2019 7:18 pm As an officer I've had great service and pricing from USAA. They get an undeserved bad rep on this forum. Also the title says "more bad news", what was the original "bad" news?
I agree with wootwoot. OP, what prompted the "more" in your thread title? I'm not saying that USAA is perfect by any means, but this title seems quite misleading.
The continuous execution of a sound strategy gives you the benefit of the strategy. That's what it's all about. --Rick Ferri
nix4me
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Joined: Sat Oct 13, 2018 9:32 am

Re: More Bad News for USAA Bank

Post by nix4me »

Read the article - link is in the 3rd post of the thread.
andypanda
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Location: Richmond, Virginia

Re: More Bad News for USAA Bank

Post by andypanda »

"not sure how GEICO's would be"

My parents always had Geico insurance and I've had it since 1967. I've had a few claims and never had a reason to change companies. The last one was a tree limb falling on my Highlander two years ago.

The adjuster tried to steer me to some Geico-affiliated repair shop and get me to agree to Bondo patches. I took it to a big outfit that advertises and they did it the correct way - cutting the roof off and putting a new one on. It cost Geico twice as much as the adjuster predicted and Geico never complained. The body shop handled every detail and cost increase and all I had to do was pick it up when it was ready. My rates did not go up either.
Altron
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Joined: Fri Aug 19, 2016 3:51 am

Re: More Bad News for USAA Bank

Post by Altron »

I don’t bank with USAA but I know many people who do and they have a good reputation. They are struggling with compliance issues right now and have been hit with a few fines, hence the “more” in the original post.

My hope is that their compliance issues are symptomatic of growing pains and not some Wells Fargo-esque cultural problem that harms their customers. They will continue to be scrutinized because of the military clientele they serve.
Topic Author
SueG5123
Posts: 173
Joined: Fri Jan 01, 2016 8:41 pm

Re: More Bad News for USAA Bank

Post by SueG5123 »

bayview wrote: Tue Feb 19, 2019 12:35 pm
SueG5123 wrote: Sat Feb 16, 2019 7:36 am From The Houston Chronicle this morning, federal regulators have taken action against USAA Federal Savings Bank for “engaging in unsafe or unsound banking practices.”

USAA seems to be violating the trust with its clientele.
wootwoot wrote: Sat Feb 16, 2019 7:18 pm As an officer I've had great service and pricing from USAA. They get an undeserved bad rep on this forum. Also the title says "more bad news", what was the original "bad" news?
I agree with wootwoot. OP, what prompted the "more" in your thread title? I'm not saying that USAA is perfect by any means, but this title seems quite misleading.
The title is not misleading. In December, barely 60 days ago, USAA was slapped with $15 million in fines and restitution from the feds due to sketchy banking practices, some of which appeared to target lower ranked military personnel for banking fees. It was in the newspapers at the time, and was also cited in a post to BH (not by me). Presumably, this was why USAA members received “the apology letter” in December.

I am a retired officer married to a retired officer. My association with USAA goes back 37 years. In the last year I moved my auto insurance, and intend to do likewise with home and umbrella. I have recently moved my banking as well. USAA is not the same organization I started with as a young ensign in 1982.
Daddio1949
Posts: 5
Joined: Sun Feb 17, 2013 6:25 am

Re: More Bad News for USAA Bank

Post by Daddio1949 »

I have checking accounts with several banks, in particular USAA and Schwab. Overall, I prefer Schwab checking over USAA. Both banks are operate only online and provide similar services:
  • free checking, no minimum,
  • ATM fee reimbursement,
  • interest on balances
I rarely contact Schwab or USAA about my checking, so I can't address personal contact.

Schwab's online interface is easier to use than USAA's. Schwab pays a higher rate of interest on checking even if the balance is less than $1,000. All ATM fees were reimbursed, even when we traveled in Europe. Schwab does not have a $5,000 limit on bank transfers.

USAA has many ATMs in our area. The only reason I have the USAA is due to the their 2.5% credit card. To receive 2.5% cash rewards, you needed to open a USAA checking account. Though I rarely need to transfer more than $5,000 between banks, I did need to move money to pay for college tuition.
nix4me
Posts: 859
Joined: Sat Oct 13, 2018 9:32 am

Re: More Bad News for USAA Bank

Post by nix4me »

I will consider Schwab if USAA continues to disappoint. They wouldn’t insure my new home in Florida so no more home insurance. Their car insurance increased so much that I got twice the coverage for half the price somewhere else. Their IRA fees are terrible so I moved that to Fidelity. They sold my mortgage to another lender. So all I have left there is banking.

I see no benefit in being a member anymore. We didn’t even get a member share check this year.
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