Newsroom

USAA Federal Savings Bank will pay $15.5 million to settle a claim from the Bureau of Consumer Financial Protection that it violated the Electronic Fund Transfer Act (EFTA) and Regulation E.

The bureau, in its consent order, said that USAA violated the regulations "by failing to properly stop Preauthorized Electronic Fund Transfers and failing to initiate and conduct adequate error resolution investigations." It also determined that the bank engaged in unfair practices "by reopening closed consumer deposit accounts in certain circumstances without providing timely notice."

USAA has been directed to provide about $12 million of its settlement in restitution to consumers who were denied a reasonable error resolution investigation; it will also pay a $3.5 million civil money penalty.

Credit unions can find compliance resources related to the EFTA and Regulation E on NAFCU's website.