USAA to Pay $64.2 Million in Settlement to resolve a class action lawsuit involving military customers who were charged excessive fees and interest rates. The bank known for its services to military families has agreed to compensate over 210,000 eligible members for these violations of the Servicemembers Civil Relief Act (SCRA). Though USAA denies any wrongdoing they have decided to settle the case to avoid prolonged litigation.
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Lawsuit Overview: USAA to Pay $64.2 Million in Settlement
The lawsuit which began in November 2021 alleges that USAA to Pay $64.2 Million in Settlement is a result of the company’s failure to reduce fees and interest rates for military members in compliance with the SCRA. This resulted in inflated principal balances and improper compound interest calculations. Additionally violations of the Military Lending Act were identified.
Violations Identified by the US Department of the Treasury
In 2019 the US Department of the Treasury’s Office of the Comptroller of the Currency identified 546 violations of SCRA by USAA Federal Savings Bank. These included issues such as excessive fees and improper vehicle repossessions. As a result, the bank was fined $85 million in 2020 for failing to maintain compliance with federal laws.
Settlement Breakdown: Who Gets What?
Eligible military members can expect varying settlement amounts based on their involvement. Here’s a breakdown of who gets what from the USAA to Pay $64.2 Million in Settlement:
Recipient | Amount |
Main Plaintiffs | $20,000 each |
Eligible Military Members | Just over $200 each |
Law Firms (Smith & Lowney PLLC, Hagens Berman Sobol Shapiro LLP) | 27.5% of the settlement (~$17 million) |
How to File a Claim
Eligible military members can file a claim for their share of the USAA to Pay $64.2 Million in Settlement by visiting the official settlement website: www.usaabankclassaction.com. Don’t miss out on this opportunity to claim your payment.
Frequently Asked Questions (FAQs)
1. Who is eligible to claim payment from the USAA settlement?
Eligible members are military customers of USAA who were impacted by overcharged fees and high interest rates as part of the class-action lawsuit.
2. How much money can I expect from the settlement?
Plaintiffs who file a claim can receive just over $200, while the four main plaintiffs will receive around $20,000 each.