WASHINGTON, D.C. — USAA Federal Savings Bank will pay approximately $12 million in restitution and a $3.5 million fine to settle charges by the federal government that the bank violated the Electronic Fund Transfer Act.
According to the Consumer Financial Protection Bureau, USAA did not follow customer's "stop payment requests" for electronic transfers and failed to take efforts to resolve the issue. USAA also reopened some accounts without customer consent or notification, the bureau said. The bureau alleges USAA's actions violated the 2010 Consumer Financial Protection Act as well as Regulation E.
The settlement includes USAA, which has headquarters in San Antonio, paying nearly $12 million to customers who "were denied a reasonable error resolution investigation" as well as the $3.5 million civil fine, according to the bureau.