Report: #860831

Complaint Review: USAA Bank

  • Submitted: Thu, March 29, 2012
  • Updated: Thu, March 29, 2012
  • Reported By: Pam — Orlando Florida United States of America
  • USAA Bank
    10750 McDermott Pwy
    San Antonio, Texas
    United States of America
  • Phone: 210-456-8000
  • Web:
  • Category: Banks

USAA Bank Customer Service Only A Bunch of Words. Not An Alternative To The Big Banks. Your Bad Policy vs. My Good Money San Antonio, Texas

*Consumer Comment: I Echo The Other Comments.....

*Consumer Comment: My personal experience with USAA

*Consumer Comment: What?

Show customers why they should trust your business over your competitors...

Nearly a year ago I decided to find an alternative to my big bank, BOA, and since my hubby is a vet, I thought I'd try USAA.  Bad move, and thank goodness I kept my BOA account.  USAA has policies that are not conducive to good customer service:

I use a primary checking from one of the big banks to "fund" my USAA account.  Every month, I put in a certain amount of dollars (to pay my USAA-issued credit card and general bills) into the USAA account from this primary account.  Here's what happens -- if I put in $350, they put a hold on $250 of that money for up to SEVEN days.  Can you imagine not having access to your funds for as long as a week?  My income is strictly Social Security as I am a senior.  After they did this twice, I called to try to find out why would there be a hold on a funds that come from a verified funding account -- USAA did the verification.  Explanation: You're a new customer.  Okay, when do I not become a "new customer"?  They did not have an explanation of when my "newness" would wear off.  Now, this isn't my first rodeo.  I've been banking for more than 50 years, and I do not bounce checks or commit any other irresponsible or "accidental" acts when it comes to my banking relationships.  After six months of still being "new" I decided that I need to find another bank that will let me access my funds when I make a deposit.  Mind you, these deposits are considered cash.  If I have to wait for "cash" to clear, Houston, we have a problem!

Secondly, I have a USAA issued credit card:  I never charge more than I can pay in a month.  Each month, (after the hold comes off my USAA deposits) I pay my entire credit card balance.  It's usually in the $200 range.  Here's what happens:  Money to pay the card is sitting in the USAA checking account.  I log on and pay the bill using my own funds.  A few days later, I go to Best Buy to make a purchase.  Card is declined.  I tell the clerk to run it again -- must be a mistake because there is no balance.  Declined again.  I step away and call USAA right there in the store.  I'm told that there is, you guessed it, a hold on my payment.  Of course, I'm reaching for an explanation telling the USAA rep that the payment comes out of my checking account.  Why would you put a hold on a payment that YOU have the funds in my account to pay?  Several reasons are given:  1.  You paid the whole balance; 2. You may have had payments that didn't go through, 3.  It may appear as unusual that you would pay off the entire balance (similar to #1), 4. You may not have had enough in your checking account to pay for your card.  Since none of these reasons applied to me, I tell her so and then ask how long will you people hold my credit card payment?  Her answer was that it could be 10 business days!  

There's something wrong with these business practices -- they are clearly an effort to reap interest on a customer's money at the expense and inconvenience of the customer.  Understandably, they are a for-profit business, but it is ridiculous to implement stupid rules and reasons to prevent someone from having access to their own funds in a timely manner.  In the day and age of electronic transmissions, USAA has chosen to use the horse and buggy method when it's advantageous to them.  Putting a hold on $250 of a $350 deposit for seven business days is a real nickel and dime move.  
Needless to say, I am looking for another alternative for banking.  They are worse than the big boys -- at least the big banks TELL you when they're screwing you.  I absolutely hate this bank, and will be closing my account with them in a few days -- they'll probably put a hold on being able to do that also!

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This report was posted on Ripoff Report on 03/29/2012 05:49 AM and is a permanent record located here: The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year. Ripoff Report has an exclusive license to this report. It may not be copied without the written permission of Ripoff Report. READ: Foreign websites steal our content

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#1 Consumer Comment

I Echo The Other Comments.....

AUTHOR: Jim S - (United States of America)

USAA rocks is probably the most compact way of expressing how good they are.  I teach a class, and anyone who is a veteran...I recommend them go USAA over their own respective armed services credit union.  My experience with their customer service has been nothing short of fantastic.... and for consumers who aren't veterans, they can buy auto insurance with the same great service.  I will tell you this:  if you have trouble with USAA....there is no bank out there that will satisfy you.  Really...Seriously.....
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#2 Consumer Comment

My personal experience with USAA

AUTHOR: coast - (USA)

I have a USAA checking account and a USAA Visa card. When I first obtained those accounts (less than two years ago) part of my deposits were withheld for about a week. After about six months they started withholding a smaller percentage of my deposits. After about one year they made the full amount of the transferred funds available the same business day as the deposit, which is much quicker than any other bank that I have done business with. I can take a picture of a check with my phone, tap a button and presto the money is available almost immediately. I have had a Wells Fargo savings and checking account for fifteen years and they don't make the funds available the same business day that the funds are transferred from within their own system but USAA permits it with a deposit from another bank. I suppose if I had an overdraft history USAA would not make the deposited funds available that quickly.

My Visa card has never been declined. If you are unable to use your card because your $200 payment has not posted then it appears as though you have a $200 credit limit or you are within $200 of your credit limit. That's not a good position to be in.

I am not a wealthy person but USAA has rewarded me for having outstanding credit.

USAA excels in their customer service. USAA rocks!
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#3 Consumer Comment


AUTHOR: Robert - (U.S.A.)

So if I get what you wrote.  You wanted to find an alternative to the "Big Banks", so you opened up a USAA Account.  But you still kept open an account at BofA as your PRIMARY account and only used it to pay your USAA Account and general bills.  If you were reading this, does this sound like someone who is really looking for an alternative?

Banks have specific regulations that they must follow as to when they make the funds available.  I wouldn't take the Teller's response of you being a "new" customer as it is set in stone, as that does not sound correct based on what you wrote.  The hold may be because of HOW you are depositing the funds.  You can search for "Expedited Funds Availability Act" AKA "Reg CC", if you want to see when they need to make the funds available. 

As for the Credit Card hold, there is really nothing you can do about that one.  As long as they credit the payment on the day it was made there is nothing illegal about it.  Remember this is a line of credit they are granting you to use, and it is up to them as to when they are willing to allow you to access their money again.  This is also something that is becoming standard in the situation you described with other cards.  It seemed to start mainly with "Sub-Prime" cards, but is starting to creep into more mainline cards. 
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