Bloomberg Law
Jan. 3, 2019, 7:23 PMUpdated: Jan. 3, 2019, 8:12 PM

USAA To Pay $15.5M In Kraninger’s First CFPB Enforcement Action (2)

Evan Weinberger
Evan Weinberger
Assistant Managing Editor

USAA Federal Savings Bank agreed to pay $15.5 million for failing to stop automatic payments at customer requests and reopening closed accounts without authorization in Consumer Financial Protection Bureau Director’s Kathy Kraninger’s first enforcement action.

The San Antonio-based bank, which focuses on serving active duty and retired military customers, also allegedly did not sufficiently investigate payment errors reported by customers, the CFPB said in a consent order released Jan. 3. Under the settlement, USAA agreed to pay $12.5 million in restitution to affected customers and a $3.5 million civil money penalty.

All of the conduct at issue in the settlement ...

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