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Although USAA has been a respected financial institution for decades, serving members of the military, veterans and their families, it has recently found itself in hot water with regulators and customers.

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A new joint research from American Banker and the San Antonio Current describes the organization’s many problems and how the bank and insurer are currently “navigating a minefield of their own creation.”

For example, it has been punished for charging military members more interest than federal law allows. Because of these and other violations, regulators have failed the Community Reinvestment Act exam twice in a row, which measures how well banks serve communities.

This is an exam that most banks easily pass, and these failures in 2020 and 2023 indicate “a fundamental breakdown” at USAA, Adam Rust, director of financial services at the Consumer Federation of America, said in the article. “What’s especially shameful is that they are serving service workers who deserve better,” he added.

Even more alarming this year are customers reported losing thousands of dollars of their hard-earned money due to mysterious deposits and withdrawals, according to a report from News 4 San Antonio. Some say they were even asked to cover negative balances on their accounts after their money was stolen.

Here’s what you need to know about what’s happening at USAA and what to do if you have trouble with your bank.

There are many important issues at USAA

Overall, it appears that USAA has not invested enough in safety measures as the company remained in good graces with their long-standing customers and with regulators. It has also struggled to turn a profit in recent years, with a pre-tax loss of $398 million in 2023.

Three former compliance officers who spoke to American Banker and the San Antonio Current on condition of anonymity complained that the department was struggling under pressure, with a lack of cohesion, little openness to make processes more efficient and initiatives that were “by the loopholes fell or just a roadblock.”

In 2023, customers filed 417 complaints with the Consumer Financial Protection Bureau about the bank’s checking and savings accounts, a dramatic increase from 150 in 2018.

As of 2019, USAA also faced a number of fines: $3.5 million for customer-related violations, $85 million for compliance and management issues, and $140 million for weak anti-money laundering protections.

USAA also paid $64 million to settle a class action lawsuit related to overcharging military members who were entitled to certain protections.

Then there are the many changes higher up. It’s not just USAA CEO Wayne Peacock who is leaving (he plans to retire in 2025). Over the past year, several leaders have parted ways with the company, including Bank President Paul Vincent, Chief Audit Executive Gilbert Gitichie, Chief Risk Officer Neeraj Singh and Chief Security Officer Jason Witty.

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Experts say there may be significant disruption at USAA.

“Individually these various violations can be understood, but together they reveal a pattern that raises concerns,” Mark Williams, a professor of finance at Boston University and a former banking regulator at the Federal Reserve, told American Banker and the San Antonio Current . “There is something more fundamental.”

Customers interviewed for the article said they felt the quality of customer service they received had declined and that they wished there was more transparency about security issues.

Handle problems with your bank

If you’re having trouble with your bank and feel like you’re not getting anywhere when you speak to customer representatives, there are other alternatives. When trying to resolve issues, be sure to document any interactions.

You can use social media to draw attention to your problem and express your grievances, or you can send a direct message to the company’s social media profile expressing your concerns.

Speaking to someone from the CEO’s office can help convey how serious you are and how important it is that your concerns are heard. Find the bank’s main phone number and ask to speak to someone who works in the CEO’s office. State your situation and explain your frustrations politely, as your goal is to be heard and hopefully the person on the other line is willing to help you.

If you feel you have been discriminated against, or that the bank has been harmful or misleading in any way, consider filing a complaint with the regulators. The Federal Reserve has one consumer complaint form You can complete this online, or you can call their consumer helpline. This is where all your documentation about your problem comes in handy.

You can also file a complaint about financial products and services with the Consumer Financial Protection Bureau, providing as much detail as possible. The agency will forward the complaint to the company to help you get a response, or forward it to another agency it believes is better suited to help.

You can also file a complaint with the Better Business Bureau if you are concerned about poor customer service. Please note that banks may not provide an answer.

As a consumer you have more freedom of choice than you may realize. If you are not satisfied with your bank, you should seriously consider switching to another bank.

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This article provides information only and should not be construed as advice. It comes without any form of warranty.