I’ve been very disappointed with both USAA banking and USAA Insurance recently. They’re difficult to get on the phone and the “bot” often fails to get me to the right person. I’m angry by the time I get to a live human out of frustration of being lost in phone menu purgatory for five minutes, talking to a bot that cannot understand my voice.
In 40 years with the company, I’ve had very few claims, but their customer service has become atrocious, and our homeowner claim last year was a huge hassle. Underwriting the policy was a huge hassle on our new house. The worst part came when they said they needed photographs of various parts of the interior to determine the replacement cost, especially things like flooring, finishes, and cabinetry. Closed in the house in March. They knew I wasn’t moving in. But they began calling me several times a week asking for photographs of the interior. I provided them the Zillow photographs. Not good enough. After two months of weekly harassment, I let them know that I wasn’t yet in the house and I wasn’t able to comply with their demands, and they were welcome to find another client. They backed off a little bit on timeline, but they said that I needed to download some app, that would allow me to take pictures that were suitable for their underwriting.
I travel frequently, and I’m often out of country, soI wasn’t able and they finally agreed to send a photographer to take pictures of the interior so that they could underwrite policy.
If they told me I was going to go through all this hassle from the beginning - I would never have used them.
Recently, USAA Banking changed their “bill pay” policy as follows:
They debit your account the day the check is mailed.
The check is mailed from a 3rd party.
They don’t provide a canceled check image
They won’t allow you to stop payment
So, under this policy, I sent a check for rent (my shop). Landlord says they didn’t get it. USAA can’t track it. I can’t track it. I can’t put a stop payment on it. It’s lost.
Fraud investigation says, “we attempted to contact the payee, but were unable, your account has been debited $1,175”.
That’s it. Gross ineptitude on the part of the fraud investigator by failing to actually make contact with the payee. USAA assumed that I was at fault. I paid the rent using my credit card. I am still arguing with USAA and have opened the fraud case again.
USAA fails to realize that this is the straw that broke the camel’s back - I will slowly unwind my relationship with them. Starting with banking. I’ve been moving money out of my accounts for a long time* and we are talking a six figure amount.
I canceled USAA bill pay last month after this policy fiasco.
I just shifted my USN pension direct deposit to Navy Federal.
I’ve contacted an insurance broker for homeowner’s and auto insurance.
One step at a time, but with each step, I am unwinding the relationship. I will put parallel institutions to work. When the direct deposit starts going to NFCU, I will take my paycheck elsewhere, too. I currently have checking, savings, and credit card at multiple institutions.
All of them offer better service, better rates, and less hassle than USAA banking.
There is no longer an advantage to being in the USAA member. I am just a number to them. They’ve grown rapidly by lowering the standards of membership. They have spent money in advertising, and fancy jingles, to the detriment of their product competitiveness and their customer service.
Addressing me by my retired rank when I get a representative on the phone is a nice touch, but utterly inconsequential when compared with poor products and lousy service.
*For example, Alliant Credit Union pays 3% on a savings account. Vanguard pays me 3.35% interest on a savings account - but USAA pays 0.1%. When I inquired about this disparity, they had the chutzpah to say, “we pay competitive market rates.” Sure you do. Keep telling yourself that.
