USAA Federal Savings Bank is in direct violation of Texas state law by denying consumers (and myself) pro-rated refunds of 'Total Loss Protection' - commonly known as 'gap insurance.'
USAA Disclosure states, 'You may cancel Total Loss Protection and receive a full refund within sixty 60 days of the date of the plan agreement. If you cancel after the 60 day period, you will not receive a refund.'
A description of the plan states, 'The plan pays the difference between the amount you owe us and the amount you receive as an insurance settlement less certain refunds and payments.'
Texas Administrative Code, Title 7 Banking and Securities, Part 5 Office of Consumer Credit Commission, Chapter 83 Regulated Lenders and Credit Access Businesses, Subchapter A Rules for Regulated Lenders, Division 9 Insurance, Rule 83.812, states in 'e' (1), 'Upon termination of a gap waiver agreement prior to the scheduled maturity date of a loan, the licensee must provide the borrower a refund or credit calculated using the pro rata method.'
I paid off 4-5 year loans on two vehicles after only one year and was denied a pro rated refund of gap insurance. I attempted to recover the amounts in phone calls to USAA but was denied on all occasions. When I took out the loans the protection was sold with no special distinction from gap insurance - and, by USAA's own description functions the same.
USAA claims their own frivolous definition of the protection allows them not to refund any amounts. This is absurd, in my opinion, and flies arrogantly in the face of Texas law.
On another note, I've been a customer of USAA for nearly 20 years. It seemed as if they really used to care and be helpful. My experience with them over the past few years on several fronts has demonstrated in no uncertain terms that they do care - solely and completely about profit at whatever dishonorable price to their customers (and illegal in this specific case).