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CFPB orders USAA FSB to pay $12M restitution, $3.5M civil money penalty

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CFPB orders USAA FSB to pay $12M restitution, $3.5M civil money penalty

San Antonio-based USAA Federal Savings Bank settled charges of violation of the Electronic Fund Transfer Act and Regulation E with the Consumer Financial Protection Bureau.

According to the bureau's consent order, USAA failed to properly fulfill consumers' stop-payment requests on preauthorized electronic fund transfers, among other findings of the CFPB. Also, USAA violated the Consumer Financial Protection Act of 2010 by reopening deposit accounts that the account holders had previously closed, without prior permission or notice, as per the CFPB's findings.

As part of the enforcement action, USAA is required to pay $12 million in restitution to certain consumers who were denied a reasonable error resolution investigation. USAA will also pay a civil money penalty of $3.5 million.

USAA consented to the issuance of this order without admitting or denying any of the CFPB's findings.