USAA Federal Savings Bank has been ordered to pay $12 million in restitution to customers and got hit with a $3.5 million fine for its unusual payment behaviour.
In its consent order, the Consumer Financial Protection Bureau (CFPB) says it found that Texas-based USAA violated the Electronic Fund Transfer Act and Regulation E by failing to properly honour consumers’ stop payment requests on preauthorised electronic fund transfers, and by failing to initiate and complete reasonable error resolution investigations.
