CFPB slaps USAA with $12 million fine for EFT violations

CFPB slaps USAA with $12 million fine for EFT violations

The Consumer Financial Protection Bureau (CFPB) has fined USAA $12 million for failing to honour consumers' requests to stop payments and undertake reasonable error resolution investigations.

As well as violations of the Electronic Fund Transfer Act, the consumer watchdog also found USAA in contempt of the Consumer Financial Protection Act of 2010 by reopening deposit accounts consumers had previously closed without seeking prior authorisation or providing adequate notice.

Under the terms of a consent order, USAA must pay an estimated $12 million in restitution to customers who didn’t get a reasonable error resolution investigation, as well as pay a $3.5 million civil money penalty.
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Comments: (1)

Hitesh Thakkar
Hitesh Thakkar - FIS Payments Software and Services India - India 04 January, 2019, 18:26Be the first to give this comment the thumbs up 0 likes

Good example set to build confidence in users. Hope some other part of world also fecth lesson from it.