USAA fraud closing accounts... Options

[belleama]

This sucks.

If you don't mind me asking, what were the ballpark figures of the amounts that were deemed suspicious? Did they claim you were kiting, by any chance?

I called USAA again today. They are saying it is official my accounts will be closed on the 14th and there is nothing that can be done.

I spoke to a woman at OTS, as Heg suggested, and they are saying that banks can just place your funds on hold and close them as they see fit. But they will do an investigation after I send in a letter with all the details. Not sure how it will help but I will send the letter.

So its over. Three years of working with this bank are over because someone didn't like something in my account and didn't want to tell me what it is. Fantastic.

So does anyone know if they will now be putting me in chex under account abuse or fraud or something?

Kiting wasn't an issue. The majority of my deposits are basically cash so there is nothing to kite. I've only put maybe three checks in my account in the last year. I don't write checks. Its pretty much all debit card and bill pay. Thats it.

Monthly between $3-5k from DH sometimes he gets paid earlier in the month so when he makes the deposit it looks like $6-10k a month. I also got about $6k in CS payments earlier this year.

This month he made that deposit. I had my tax refund $3k. I borrowed $6k from GM. $2k came in from my paypal account.

All and all not alot but they decided they didn't like the deposits. Then after they got my identification docs they didn't like something. I'm wondering if it has something to do with my CRs being frozen. I don't know. They wont tell me at all.

This post has been edited by belleama: Jul 3 2008, 01:54 PM

[Googie]

[belleama]

I don't know if you'll end up in Chex for anything .......... but I'd open another account somewhere ASAP just incase.

I'm trying. I need to unlock my EQ report to apply with Navy Fed and DCU. *sigh*

Sorry this is happening to you Belle. I think the more burning question is when will they be cutting you a check....

14 July or later.

[persevering]

From your earlier post, it sounds like the remote deposit ("deposit at home") feature might be a low priority. But in case you need it, Chrisitian Community Credit Union and DCU offer it.

There are also a few other credit unions offering the service:
http://www.netbanker.com/2008/04/digital_f...it_union_a.html


I'm so sorry that this happened to you. This experience makes all the praise about USAA's dedication to its customers sound like a load of crap. You were never even given a chance to defend yourself. This experience makes me feel like the prudent thing for USAA customers to do is to have a constant vigilance of and distrust toward USAA as much as if it were a sub-prime bank.

This post has been edited by persevering: Jul 3 2008, 02:03 PM

[persevering]

I have one other theory about what might have caused this sudden shut-down; what if it was one of or a combination of these three things ?
(1) the number of and the monetary amount of the cash deposits
(2) (large amount of) money being moved into/out of paypal
(3) USAA feeling like its checking account was being used as a "funds hub" / "middle man"

This quote can explain this better. Besides the previous fatwallet thread, in this one a poster named makeinu had his accounts suddenly frozen and then closed.

Here is the discussion that took place:

Date Posted: Jun/27/2006 10:32 AM
Posted By: makeinu
Rank: Thrifty Member

Well, in the long term I used the funds transfer feature generously. It was the primary way I moved money into or out of my USAA account. Same way I do with Emigrant Direct or any other internet bank (although the fraud department specifically told me "We are not an internet bank"...I forgot that part of the single branch in Texas bit). I had one checking account, one regular savings account, and one first index savings account that I opened just before the rapid policy changes.

In the two to three weeks prior to them freezing my account I moved the majority of my money to another bank in three large transfers. One was via funds transfer with a telephone rep, one was via paypal, and the last was via a paper check that I had written to myself. After that there wasn't much activity on my account at all, I was simply waiting for the policy changes to stabilize. I left all my bill payments in place as I didn't think the crisis was as bad as it is. However, except for one or two of them, none of those were due until this week. A paper check also cleared that I wrote to the IRS.

This is one of the reasons I am so pissed. This came straight out of the blue and the fact that USAA fraud called my other bank to tell them to freeze my account just added insult to injury.

[...]

Date Posted: Jun/27/2006 11:15 AM
Posted By: DaveHanson
Rank: Senior Member

That's helpful makeinu. Thanks for posting it.

I see (at least) a couple of "red flags" from USAA's perspective:

-(Recently) having transactions larger than the balances you're keeping with them
-Using paypal for a large funds withdrawal (anything with large paypal transfers will always look risky)

Does this justify the manner in which they reacted to you? No. But it is consistent with what I've heard from supervisors about what they consider to be risk factors for the bank. I'm sure that with the recent crackdown, they decided that figuring out whether you were legit or not was simply more trouble than it was worth. From their POV, they could be left holding a very large bag IF some of the recent moves OUT of the bank turned out to be fraudulent.


I hope other USAA users will keep makeinu's experience in mind. Don't rapidly move money around using USAA as a conduit or intermediary, especially in amounts that exceed the balances that you're keeping on hand at the bank.

Date Posted: Jun/27/2006 11:31 AM
Posted By: GoCowboys
Rank: Happy Member

If you look back at my original post and other posts I have submitted, I emphasize the fact that you should NOT use USAA simply as a "middleman" to transfer funds from one bank to another without actively using the account for your daily banking needs. This has always been something they frown upon, and even more so since the fraud issues.

Date Posted: Jun/29/2006 9:39 AM
Posted By: UncaMikey
Rank: Happy Member

[...]

xrt1, my understanding is that the transfers being discussed here, the ones leading to the paranoia, are those initiated at USAA. If you have the lending institution or creditor "pull" their payment from your USAA account every month, you are fine. I do quite a few transfers in and out of my USAA account every month, but they are all initiated outside USAA. USAA does not even show them on my list of transfers.

[...]

This post has been edited by persevering: Jul 3 2008, 02:32 PM

[belleama]

Perservering, thanks for the links. I'll check those banks/CUs out too. I guess its a good thing I forgot to close my commerce bank checking account last year when I was wittling down my bank accounts. *sigh*

This post has been edited by belleama: Jul 3 2008, 02:32 PM

[belleama]

OMFG!!! I can't believe this stuff you're posting now. If I had any any any idea I wouldn't have leaned on them so heavily! I was putting the bulk of my money IN to the bank not taking it out. Jesus. I feel like a complete fool now. Trusting them. Most of my accounts were there.

2 Checking
1 Savings
1 Mutual fund account
1 Roth IRA
1 Rollover IRA

Then DD had:

1 First start savings
1 prepaid debit card
1 Mutual fund account

I used their bill pay for everything.

[belleama]

Recieved two letters today dated 30 June 2008. Guess this means they had already decided to close my accounts BEFORE they recieved our IDs, BCerts, and SSCards.

Reference Account Closure

Dear Belleama,

Your deposit account ending in XXXX wil be closed in 14 calendar days because of unacceptable account transactions. All items presented for payment against this account after July 14, 2008 will be returned "Account Closed."

We regret that we were unable to help you esolve this matter.

Thank you,
USAA Federal Savings Bank

The latest woman has no idea what "unacceptable account transactions" means. Sees no notes about "suspicious deposits." Does not see any notes about why they needed DD and DH's dox. WTF?? She is going to "look into it" for me too. Whatever.

Meanwhile the accounts are still frozen and will remain frozen until the accounts are closed and funds are sent back to me (at my OLD ADDRESS) via certified check. However, the last deposit will come off hold tonight. Big whoop. What good is that if the account is still FROZEN? Isn't that the samething as keeping the funds on hold? *sigh* Stupid USAA.

[persevering]

Giving this a ^bump^ in case anyone has any suggestions for belleama.

It blows my mind that USAA is treating you like this.

[Steve_]

USAA uses first.last@usaa.com. Some officers are listed on the wikipedia page and other government filings. Also Facebook, MySpace, LinkedIn. E-mail a whole bunch and you should get someone to contact you.



That's how I convinced them I was worthy of a credit card.

This post has been edited by Steve_: Jul 8 2008, 04:13 PM

[persevering]

And in addition to the names listed at http://en.wikipedia.org/wiki/USAA , I found some additional names at a library website that lets you look up business information. I wanted to mention that if you think you want to try Steve_'s suggestion and you need some additional names to try out as far as potential email contacts.

This post has been edited by persevering: Jul 8 2008, 04:56 PM

[persevering]

I researched and found two phone numbers that appear to be executive office phone numbers. I sent you a private message.

Also, another idea is that in the current USAA thread over at fatwallet.com, you could ask if anyone has any contact information worth trying.

"The Ultimate USAA Bank Thread, version 2.0"

This post has been edited by persevering: Jul 8 2008, 05:33 PM

[firefighter 161]

I have made several honest "mistakes" over the years...

transfered funds from my CU account to USAA, using usaa.com but selected the wrong CU and it was returned.

paid usaa bills on usaa.com and selected the wrong local bank off the list and the payment was returned.

had NSF's cause I wrote a check from USAA and shouldn't have.

etc. etc.

granted this has probably only happened about 6 or 7 times since I joined in 1995.

I transfer money around like no tomorrow with there usaa.com transfer service. I deposit checks and cash into my Local CU account then transfer it all to USAA because of there instant credit, and then transfer parts of it out to several other banks, long before the money ever leaves my Local CU account.

They have never batted an eye. its not like them to cancel accounts for no reason, I mean look at all my screw ups and abuses of there transfer service...

Now, I do have Checking, Savings, Credit Card, Auto Insurance, Home Insurance, Life Insurance, IRA S/D, IRA Mutual Fund, and a Cash Brokerage Account with them..but I am not sure that makes them less likely to make an issue...

[mdw2006]

I called USAA again today. They are saying it is official my accounts will be closed on the 14th and there is nothing that can be done.

I spoke to a woman at OTS, as Heg suggested, and they are saying that banks can just place your funds on hold and close them as they see fit. But they will do an investigation after I send in a letter with all the details. Not sure how it will help but I will send the letter.

So its over. Three years of working with this bank are over because someone didn't like something in my account and didn't want to tell me what it is. Fantastic.

So does anyone know if they will now be putting me in chex under account abuse or fraud or something?

Belle I sorry this happened to you. After the 14th can you get your money out? I would keep a copy of everything they send you and you send them so in case Chex tries something you have proof that they closed it for this stupid reason. Let us know what their "reason" is.

[mdw2006]

Recieved two letters today dated 30 June 2008. Guess this means they had already decided to close my accounts BEFORE they recieved our IDs, BCerts, and SSCards.

Reference Account Closure

Dear Belleama,

Your deposit account ending in XXXX wil be closed in 14 calendar days because of unacceptable account transactions. All items presented for payment against this account after July 14, 2008 will be returned "Account Closed."

We regret that we were unable to help you esolve this matter.

Thank you,
USAA Federal Savings Bank

The latest woman has no idea what "unacceptable account transactions" means. Sees no notes about "suspicious deposits." Does not see any notes about why they needed DD and DH's dox. WTF?? She is going to "look into it" for me too. Whatever.

Meanwhile the accounts are still frozen and will remain frozen until the accounts are closed and funds are sent back to me (at my OLD ADDRESS) via certified check. However, the last deposit will come off hold tonight. Big whoop. What good is that if the account is still FROZEN? Isn't that the samething as keeping the funds on hold? *sigh* Stupid USAA.

You think they would want money deposited in their bank.

[prudent]

I find this to be completely outrageous. Unfortunately, it shows a little-discussed drawback to doing all banking electronically - when something like this happens, you can't march into a branch and stand in front of a manager who knows you.

While I doubt you'll get them to change their minds, I hope you can get a satisfactory explanation for their unconscionable actions.

[belleama]

Another very suprising update...

Aparently the woman I spoke to yesterday actually contacted someone who could help. Anyway, I get a call today around 6pm from a woman who is a fraud and anti money laundering investigator. I guess this is VERY serious now. Anywho, she finally tells me what is going on. Basically the problem stems from Wachovia, DH's bank. I'm not sure who initiated contact between the two banks but apparently someone got suspicious of all the cash advances. I'm not on DH's accounts at Wachovia and he is not on my accounts at USAA. So it looks like the transactions might be "unauthorized." Anywho, she says that if DH contacts her directly, even though she can't talk to him about my account, and tells her that the transactions are authorized by him then she will unfreeze my accounts.

This totally sounds like a long shot but we shall see. He's going to contact her tomorrow.

If this really works and they unfreeze my accounts and reopen them I'm sending that first lady a fruit basket or something. Not sure I trust them after this but its something.

[sara21200]

Wow - this is all so crazy. Have DH contact her and leave the IRA's open since they tend to be a bit more difficult to move. As for the other accounts - I am not sure what to say because I use USAA for everything as well and it would be hard for me to continue a relationship with a bank that essentially accused me of money laundering. In fact this kind of freaks me out because I move money between Penfed and USAA due to the timing of my direct deposits. Good luck and I am sorry you are dealing with all of this BS.

[belleama]

Umm... its a miracle. All of my accounts have been unlocked. My funds are availbable to me. They are overnighting new debit cards to me. I'm shocked and now I'm in with rep number 85(or one whichever we wanna call her). I wonder if DH will be mad if I start an affair with her.

[hegemony]

Umm... its a miracle. All of my accounts have been unlocked. My funds are availbable to me. They are overnighting new debit cards to me. I'm shocked and now I'm in with rep number 85(or one whichever we wanna call her). I wonder if DH will be mad if I start an affair with her.

I hope this ends your ordeal!

[firefighter 161]

Umm... its a miracle. All of my accounts have been unlocked. My funds are availbable to me. They are overnighting new debit cards to me. I'm shocked and now I'm in with rep number 85(or one whichever we wanna call her). I wonder if DH will be mad if I start an affair with her.

Congrats, this sounds more like USAA service.

[Lynn37]

WHOA!

How long ago between the deposits and and them telling you this?

I ask b/c I got a large lump sum last month. I have since broken the payment in 4 different accounts? All of which never had large amounts before last month. But the lump sum was from the SSA, would that make a difference?

Thanks

[firefighter 161]

WHOA!

How long ago between the deposits and and them telling you this?

I ask b/c I got a large lump sum last month. I have since broken the payment in 4 different accounts? All of which never had large amounts before last month. But the lump sum was from the SSA, would that make a difference?

Thanks

OP can correct me if I am wrong...

I think her problem was these were Individual Bank account to Individual Bank account transfers and the names didn't match. Sending account in DH name USAA account in OP name...

I think if it had been Employer/Government to USAA or matching names on Individual Bank accounts it might not have been such a large issue, maybe just a verification call or something,

but I could be wrong.

[belleama]

Okay I guess I have to believe that this isn't a dream...

I just got my debit card

[belleama]

I think her problem was these were Individual Bank account to Individual Bank account transfers and the names didn't match. Sending account in DH name USAA account in OP name...

Thats right. The problem is I didn't know thats what it was for almost two weeks. DH and I thought the problem had something to do with the hacker he had. Because he had his yahoo account hacked less than a week earlier. He hadn't made a deposit into my account in well over a month so we didn't even think that was a possibility until the lady said "suspicious deposits."

[philly_mscl]

I would report the incident directly to USAA's public relations unit.

I used to work at USAA many moons ago. They DO take care of incidents like this.


Just let USAA know that you are upset with how you were originally treated and that you have published your experience with them online.


USAA is PARANOID about bad publicity, because their entire business runs off word-of-mouth operations... they don't advertise on television and rarely direct mail. They rely on conversations that they have with prospective members (US Active Duty and Reserve military), who then spread the value of USAA on their own.

By relying on good service, they avoid the huge marketing budgets companies like GEICO and Progressive have in order to keep up new accounts.


So, USAA pays attention to any nasty experience a member has with a USAA employee. I hope you remember the name of the person you dealt with at USAA Federal Savings Bank who was very rude to you.



If that fails, you are more than welcome to send an email directly to the COO of USAA FSB and also the CEO of USAA Corporate.