USAA Federal Savings Bank has agreed to pay $64 million to resolve a lawsuit regarding the imposition of unjust fees and mismanagement of military benefits. As a result of the settlement, certain servicemembers may be eligible to receive up to $20,000 in compensation. Although the bank denies any wrongdoing, it is committed to enhancing its services and customer experience.
USAA to Pay $64 Million to Settle Lawsuit Alleging Unfair Fees and Military Protection Violations
According to The US Sun, USAA Federal Savings Bank will pay $64 million to settle a lawsuit filed by five service members who accused the bank of imposing discriminatory fees and failing to obey military protection laws. USAA denied the charges but agreed to pay in order to prevent more litigation expenditures.
Some military members could receive up to $20,000 each from the settlement. Additionally, the settlement sets aside $33 million for members who received but did not cash previous checks, with $17.7 million going to the involved attorneys. This settlement, reached after years of discussions, tries to resolve concerns about how USAA administered military perks and interest rates.
USAA Settles Lawsuit for $64 Million, Aiming to Enhance Service Despite Disputing Claims
According to USAA, the recent settlement will allow the company to shift its attention towards improving its services to members, despite the ongoing dispute regarding the lawsuit’s allegations. The lawsuit was initiated after the bank received federal orders in 2019 and 2020, mandating it to distribute checks and raising concerns about its handling of military customer benefits.
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