After a three-year legal battle, USAA Federal Savings Bank has agreed to a $64 million class action settlement. The bank’s alleged violations of legal protections and excessive fees affected about 210,000 military customers, who will benefit from this payout.
The Story Behind the USAA Lawsuit
In 2021, five service members filed a lawsuit against USAA, claiming the bank had charged “useless” fees and violated laws meant to protect military personnel. The lawsuit alleged that USAA failed to reduce interest rates and forgive certain charges, leading to significant financial losses for the plaintiffs.
Who Gets a Share of the Settlement?
The four main plaintiffs will each receive $20,000, while the remaining amount will be distributed among the affected military customers. The lawyers who represented the plaintiffs will also receive up to 27.5% of the total settlement, amounting to $17.7 million.
USAA Speaks Out,Their Side of the Story
Despite the settlement, USAA maintains its innocence, claiming the allegations are baseless. The bank says the settlement is simply a way to avoid a lengthy and expensive legal battle.
Understanding Your Eligibility Were You Affected?
If you’re a current or former USAA customer, you may be eligible for a payment from the class action settlement. The settlement is a result of USAA’s alleged violations of the Military Loan Act and the Servicemembers Civil Relief Act.
What’s Next? A Timeline of Events
The settlement is a significant victory for the plaintiffs and their lawyers. However, USAA’s denial of wrongdoing raises questions about the bank’s commitment to protecting its military customers. As the settlement is finalized, affected customers can expect to receive their share of the payout.
FAQs
How much is the USAA class action settlement?
$64 million.
Who is eligible for the settlement?
Around 210,000 military customers who were affected by USAA’s alleged violations of legal protections and excessive fees.
What were the allegations against USAA?
USAA was accused of charging “useless” fees and violating laws meant to protect military personnel, including failing to reduce interest rates and forgive certain charges.
How much will the main plaintiffs receive?
Each of the four main plaintiffs will receive $20,000.
How much will the lawyers receive?
Up to 27.5% of the total settlement, amounting to $17.7 million.
Does USAA admit wrongdoing?
No, USAA maintains its innocence and claims the allegations are baseless.
