No News is Bad News. Join the SA Current Press Club.

Thursday, October 15, 2020

Federal regulators fine San Antonio's USAA Federal Savings Bank $85 million

Posted By on Thu, Oct 15, 2020 at 9:52 AM

click to enlarge TWITTER / USAA
  • Twitter / USAA
Federal regulators have hit San Antonio's USAA Federal Savings Bank with a $85 million penalty for violations of federal banking laws that constitute a "pattern of misconduct."

In a federal consent order made public Tuesday, the Office of the Comptroller of the Currency said the bank’s internal controls and IT systems failed to meet federal guidelines and that its risk management system was inadequate given its size. The company is in the process of fixing those violations under a legal agreement with the feds, according to the agency. 

USAA Bank is a subsidiary of San Antonio-based financial services giant USAA, which offers services to members of the military and their families. The company is one of the city's largest private employers.

In a statement supplied to the Express-News, USAA CEO Wayne Peacock said the bank failed to make the investments needed to meet federal requirements during a decade of quick expansion.

“We have been working diligently and investing substantial resources to address the gaps," he said. "This is our most urgent and fundamental priority and is essential to serve members with excellence, now and in the future."

Earlier this month, the OCC lowered USAA Federal Savings Bank’s grade from "satisfactory" to "needs to improve," saying it found evidence of 600 legal violations, including wrongfully repossessing vehicles and filing inaccurate affidavits in court cases.

The trouble with federal regulators comes after USAA Federal Savings Bank faced a social media backlash for pulling money out of federal pandemic stimulus checks deposited into some customers' accounts to cover overdrafts. The company ultimately discontinued that policy.

Stay on top of San Antonio news and views. Sign up for our Weekly Headlines Newsletter.

Tags: , , , , , , , , , , , , , , , , ,

San Antonio Current works for you, and your support is essential.

Our small but mighty local team works tirelessly to bring you high-quality, uncensored news and cultural coverage of San Antonio and beyond.

Unlike many newspapers, ours is free – and we'd like to keep it that way, because we believe, now more than ever, everyone deserves access to accurate, independent coverage of their community.

Whether it's a one-time acknowledgement of this article or an ongoing pledge, your support helps keep San Antonio's true free press free.

Read the Digital Print Issue

October 21, 2020

View more issues


Never miss a beat

Sign Up Now

Subscribe now to get the latest news delivered right to your inbox.


© 2020 San Antonio Current

Website powered by Foundation