USAA to pay $15.3M for Reg E violations

The CFPB has announced a settlement with USAA Federal Savings Bank, a federally chartered savings association headquartered in San Antonio, Texas. Under the terms of a Consent Order, USAA must, among other provisions, provide approximately $12 million in restitution to certain consumers who were denied a reasonable error resolution investigation, and pay a $3.5 million civil money penalty. The Bureau found that USAA violated the Electronic Fund Transfer Act and Regulation E by failing to properly honor consumers’ stop payment requests on preauthorized electronic fund transfers, and by failing to initiate and complete reasonable error resolution investigations. USAA also violated the Consumer Financial Protection Act of 2010 by reopening deposit accounts consumers had previously closed without seeking prior authorization or providing adequate notice. See "USAA FSB to pay $3.5M fine and make restitution" in our Penalties pages for additional information.