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USAA insurance veterans class action lawsuit overview:
- Who: Five USAA Federal Savings Bank customers hit the bank with a class action lawsuit.
- Why: The plaintiffs say the bank was meant to provide service members with reduced interest rates but did not.
- Where: The case was filed in North Carolina federal court.
Five USAA Federal Savings Bank customers hit the bank with a class action lawsuit claiming the bank promised them lower interest rates but did not deliver them.
In the class action lawsuit filed May 24 in a North Carolina federal court, five USAA customers claim USAA and its subsidiary, USAA Savings Bank, didn’t properly adjust the interest rates on interest-bearing accounts that the customers, who are all current and former service members, had at the bank.
According to the lawsuit, the bank breached its own policies when it failed to give the service members the interest benefits.
It says the bank’s failure to comply with the Servicemembers Civil Relief Act, the Military Lending Act and the Truth in Lending Act, as well as its own military benefits program, resulted in significant wrongful gain based on the improperly high interest rates charged to service members.
The original lawsuit was filed in November 2021 with four of the five plaintiffs.
In the original class action, the service members claimed that they all had interest-bearing obligations at the bank that “legally required reduced interest and/or fees benefits from defendants because of an obligor’s military service.”
USAA class action alleges bank statements inaccurate
In the recent allegations, the customers say they received monthly statements from the bank indicating USAA charged at the correct, reduced interest rate.
However, in reality, the plaintiffs claim USAA charged them at the higher rates.
The USAA customers said say they’d realized this was happening, they would have taken their business to another bank.
Instead, they paid more in interest and fees than they should have.
“The named plaintiffs in this action represented and protected our nation through military service,” the lawsuit states. “They now seek to represent and protect their fellow servicemembers and veterans through this class action.”
They seem certification of the class action lawsuit, damages, fees, costs and a jury trial.
Meanwhile, USAA faces another class action lawsuit alleging it unfairly profited from the pandemic by overcharging customers for auto insurance.
What do you think of the allegations in this case? Let us know in the comments!
The plaintiffs are represented by Knoll D. Lowney and Claire Tonry of Smith & Lowney PLLC and Robert E. Zaytoun, Matthew D. Ballew and John R. Taylor of Zaytoun Ballew & Taylor PLLC.
The USAA Service Member Class Action Lawsuit is Bulls et al. v. USAA Federal Savings Bank et al., Case No. 5:21-cv-00488, in the U.S. District Court for the Eastern District of North Carolina.
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10 thoughts onUSAA class action claims insurance association overcharged service members, veterans
We would love to join this lawsuit. My husband is currently in Korea and USAA is denying his SCRA benefit while he is active duty.
Please add me, they would cancel my insurance and i would have to pay a fee to get it back. When my car was totaled when I was hit by a drunk driver they told me they would not cover all of the damage with my full coverage insurance.
Please add me. USAA is not what they used to be. I have been with them for over 20 years. They didn’t deduct my car payment and never notified me. Tore my credit up. Then when I had a claim for a power outage things started going downhill.
I moved bought a house and had a leak. USAA sent people out who never found a leak or a reason for one. My roof was replaced and I think USAA should own up to the misery and stress they caused. To add insult to injury they canceled my homeowners insurance and filed 7 claims (some for the same thing same date). Causing me to go to GA underwriting because now no one will insure me due to the claims they put out there. Their inspector found nothing but it was indeed something. Chimney was not sealed (builder) at all and USAA never told me that. The bowing and potential mold that has occurred is unsettling.
They raised my car insurance by 800 the following year. This was out of spite. They are rude when you call. How can they service Veterans and Service Members? They used to be good. My investment is at risk and they don’t care. Please add me.
Ready to quit USAA after many years. They have mismanaged our insurance premiums and told us we double paid them last year. So they refunded our $. Now this year they say it’s a computer glitch and they want last years premium! Reporting them to TX Board of Ins.
Been with usaa for 20 years. They raised my car insurance to 1900 amonth when I added my kids . Canceled them . Went back like a nut after my kids got their own insurance. They’re trash 🗑
please add me….They have been doing this for years and don’t have an accident they’ll cancel you ina heart beat even if it’s not your fault
I HAVE BEEN A USAA CUSTOMER FOR 18 YEARS AND JUST LEFT USAA BECAUSE THEY WANTED TO DOUBLE MY AUTO INSURANCE PREMIUMS. I BELIEVE THAT THEY HAVE OVER CHARGED ME FOR AUTO INSURANCE FOR YEARS.
I have been a member for years with USAA. With my car insurance and credit cards, and banking. How do I apply for the law suit?
Add me I’ve been a member for years car and home ins and banking
Add me