My unequivocal answer is YES! Next month, I will have been a member of USAA for forty-nine years. USAA has been my only bank, auto and home insurer, my brokerage firm, and until recent years my home loan company since February 1974. I was eagerly looking forward to getting my 50-Year sticker for my car next year, but that will not happen. Why do you ask? Well, bear with me and I will try to explain as briefly as possible. And I ask all those whom I had been responsible for recommending this one-time superb company to you to please read carefully and make your own decision. I am sorry.

As has happened over the years, back in December I had a suspected fraud incident on my rewards credit card, which my bride and I both have a card on that account. First let me explain that we use that card for EVERYTHING, and I do mean everything. Oftentimes I only have a few bucks in my wallet. In fact, I even bought my 2012 Mini Cooper on the card. Anyway, I called USAA and as always, I got a very polite, courteous, and knowledgeable agent who promptly took care of the problem by cancelling my card and issuing another.

I commented about having to notify all the companies that hit that card for monthly debits e.g., utilities, etc. She recommended I get another card and use it for bill paying but put the card in a drawer and not use it to buy anything but continue to use the current card for everyday purchases like gas, groceries, online purchase. That way if a fraud incident happened, I would not have to notify anyone of the card change. I thought WOW, what a great idea. I thanked her profusely. She transferred me to a credit card application agent who, as always, was another very polite, and knowledgeable agent. I explained what I wanted to do, and she agreed stating she does the same thing with two cards. I spent about forty-five minutes having to listen to four disclosures and filling out the application. She put me on hold and submitted it to the Underwriting Department. She came back on and informed me my application was disapproved. WHAT?

She blamed the disapproval on an Experian credit report. I asked for a copy of the letter outlining the refusal, which she forwarded to me. I immediately went to Experian and pulled up my credit report. My credit score was 803, and every comment on every account was favorable. They did mention I had too many inquiries during the last twelve months. I refinanced my house twice during the year to get down to a 1,75%. VA loan. Their last comment was, and I quote, “There are no unfavorable comments on this report”. Was I pissed? You Betcha!

I am an Economist by education and hobby; I understand the banking industry and the FED rules. This disapproval was not a result of a banking industry rule; it was USAA’s. I called USAA asking to speak to a supervisor or manager and was told none were available, but she would make a note and as soon as one became available, I’d get a call, – I never did!  So, as I have done one other time over the years, I wrote the CEO, now Mr. Wayne Peacock, a personal letter knowing full well he would never actually see the letter since he has a department who handles his letters – they are too big for him to be bothered with such trivial matters.

About two weeks later I received an email stating USAA had tried to reach me by telephone but was unable to. I never received a voicemail nor a phone call from them. However, they did provide a link for me to call them back, which I did.  The extension was to the CEO’s grievance department. I was told it was a recorded call. She said she was calling about my problem with a fraud charge on my credit card – she obviously had not understood the reason for the letter; therefore, I had to enlighten her. We spoke for almost an hour, and I got the party line – sorry too many inquiries. I asked if there were any mitigating circumstance considered e.g., longevity with the company, or even some sort of loyalty to a member’s record of NEVER paying a dime in interest charges or late fees. She said no, everyone is treated alike to be “fair.” She understood my frustration, but there was nothing she could do as too much time had passed. My only alternative was to reapply, but there is no way to tell what the result would be.

I asked if the CEO had seen the letter, and she said no. I asked was there any way for her to get him to see it; she said she would try, but there was no guarantee. She did say she would try and contact the underwriting dept and see if there was any way at all for them to relook at it, and she would get right back to me. That was over a week ago and I have not heard from her and won’t.

The fact is USAA has gotten too big. I am simply just another client, one of the masses and my record means nothing to them. Don’t get me wrong, it has nothing to do with my retired rank. Oh yes, they call me Colonel Bathurst when I talk to the nice agents, but that is not the point. I am talking about forty-nine years of an exemplary record.

As I stated in my letter, when I joined USAA, it was for officers only. Then they lowered it to E-7’s and above, which I applauded. Then as I best as I can remember they lowered it to E-4’s and above, Again I applauded that action. Then they lowered the threshold to any Vet with an honorable discharge or a general under honorable conditions. That concerned me! I considered that a mistake. Did they understand who gets a general discharge under honorable conditions? As many of you reading this will surely understand, many of those are not the most favorable vets around. It means they probably had official problems such as a court martial or several Article 15’s, and they just weren’t up to par with their peers. I personally believe that move has caused USAA some problems, which may be why our year-end bonuses are not what they used to be. Granted there were many who were young, wild, and foolish, and may have done something to grant that discharge, but have now grown up and became reliable trustworthy citizens.

One more issue in the letter. My RV was totaled during Ina. My insurer, Nationwide since USAA sends you Progressive because they don’t insure RV’s, paid off the loan. A debit to my checking account was to hit in two days. The loan company, US Bank because USAA’s interest rates are over the top compared to them. I called US Bank asking them to not issue the debit because of the loan being paid off. The agent said she would try but it normally takes two days to stop it, but she would try to expedite it. It was Thursday and the debit was to take place on Monday. She recommended I call my bank and tell them to not accept the debit in case she cannot stop it. I called USAA and was told it takes them three “business days” to execute a stop. I did not know USAA’s computer systems and data updating do not work on weekends. Luckily, US Bank came through and it was not executed. Maybe I will go to US Bank when I leave USAA, they don’t seem to be too big.

Sadly, I am done. I will not get my 50-year sticker. As soon as I get my year-end bonus and my senior bonus in February, I will un-ass USAA and take my business to another financial institution who understands there are exceptions to every rule, and one who recognizes and appreciates longevity and loyalty.

Cavet Emptor,

Jim

PS, Strangely, I have in recent years spoken to several members, even within my own family who also left USAA for a variety of reasons, all of which point to being too big. I do know I can get auto insurance locally for a lot less than USAA even considering their yearly bonuses, but I stayed with them for loyalty reason.

Additionally, in Oct 2017 I posted a letter I had sent to then CEO, Mr. Stuart Parker, about their advertising campaign. And I did get a call, but not from him. You can see my posts should you desire.