Federal government orders USAA to pay $85M civil penalty

Deficiencies led to violations of Military Lending Act, Service Members Civil Relief Act

USAA faces $85 million civil penalty

SAN ANTONIO – The federal government has ordered USAA to pay an $85 million civil penalty.

The Office of the Comptroller of the Currency said deficiencies led to violations of the Military Lending Act and the Service Members Civil Relief Act.

Among the deficiencies the OCC found were:

  • USAA failed to implement, maintain an effective compliance risk management program and an effective IT risk governance program commensurate with the bank’s size, complexity, and risk profile.
  • USAA has deficiencies in all three lines of defense (first-line business units, independent risk management, and internal audit) in its compliance risk management program.

The City of San Antonio faced similar violations in the past when it wrongfully repossessed vehicles of military members.

The city said it has taken corrective action. The Office of the Comptroller of the Currency said USAA Federal Savings Bank is working to fix its violations.

You can read the Bank Civil Penalty Money Order below: