USAA to Pay $64 Million to Settle Lawsuit Alleging Unfair Fees and Military Protection Violations
According to The US Sun, USAA Federal Savings Bank will pay out $64 million to settle a lawsuit filed by five servicemembers who accused the bank of charging unfair fees and not following military protection laws. Although USAA denies the claims, it agreed to settle to avoid more legal costs.
Some military members could receive up to $20,000 each from the settlement. In addition, $33 million is set aside for members who received but did not cash previous checks, and $17.7 million will go to the attorneys involved. This settlement comes after years of discussions and aims to address issues over how USAA managed military benefits and interest rates.
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64 Million Settlement: USAA Agrees to Pay Military Members Up to $20,000 Each for Unauthorized Fees and Violations (PHOTO: American Banker)
USAA Settles Lawsuit for $64 Million, Aiming to Enhance Service Despite Disputing Claims
USAA says the settlement will help it focus on providing better service to its members, even though the bank disputes the lawsuit’s claims. The case started after federal orders in 2019 and 2020 required USAA to send out checks, revealing concerns about the bank’s handling of military customer benefits.
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