WASHINGTON—The Consumer Financial Protection Bureau has announced a settlement with USAA Federal Savings Bank after finding USAA violated the Electronic Fund Transfer Act and Regulation E by failing to properly honor consumers’ stop payment requests on preauthorized electronic fund transfers.
USAA also failed to initiate and complete reasonable error resolution investigations, and further violated the Consumer Financial Protection Act of 2010 by reopening deposit accounts consumers had previously closed without seeking prior authorization or providing adequate notice, the CFPB said.
Under the terms of the 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 said.