Re: USAA denies certain services post bankruptcy

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Posted by: JB on 10/21/06:

In Reply to: USAA denies certain services post bankruptcy posted by: Rose T. on October 20, 2006 at 10:04:04:

: my bankruptcy was finalized a few months ago. USAA is my bank, and I had a CC with them (that was included in the bk).

: suddenly, I am being denied access to all online banking, they state b/c they took a hard loss and were just notified of the finalization of the bk.

: now, to check my accounts, I must call and speak with a teller, and cannot use the automated phone banking either.

: it just became more difficult to bank with them, as they are in San Antonio (and most members are not in San Antonio).

: while I understand USAA's taking a loss, and reacting, I don't understand why I am still allowed to be a "member", or what limiting my access to my accounts accomplishes? I have my auto-insurance through USAA as well (and of course, my paycheck is auto-deposited into my account, etc.).

: anyone have experience with USAA or understand the reason for denying use of certain services? Rose T.

I am not the least surprised about USAA's reaction. We also had a creditcard with them as well as a car loan plus checking and savings account. The credit card was included in our Ch13, while we continued to pay the carloan OUTSIDE the Ch13. On advise of our attorney we opened a checking and savings account with a local bank prior to filing and had all paychecks go into that account.
Our Ch13 was discharged over a year ago and when I pulled our credit reports I saw that USAA still reported the creditcard as past due with the full balance still open and the carloan showed 'discharged thru Ch13' which is incorect since the car was paid off less than a year into the Ch13. USAA, however, to this day refuses to correct the information on the credit reports stating that they took a loss and that is their way of handling it. We are now looking into possibly suing them!!!
Also USAA has done a number on our car insurance. The car insurance jumped 32% this year - we have not had a claim, ticket or anything in over 10 years - and USAA said they somehow had to recover their loss.
USAA used to be run by retired military people but over the years it changed to civilians who had never served at all. These people brought their 'philosophy' with them!!!



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