USAA Military Fee Lawsuit Settlement Guide ($64.2 million)

If you are a USAA Bank customer who received and deposited a remediation check as a result of the Servicemember Civil Relief Act Lookback Review or the Military Lending Act Remediation, or were identified to receive a remediation check based on these or other remediations but did not successfully cash or deposit such payment, you may be eligible to claim an award from a class action settlement.

USAA Federal Savings Bank and USAA Savings Bank have agreed to pay $64,202,833.59 to settle a class action lawsuit for alleged violations of the Servicemembers Civil Relief Act (SCRA), the Military Lending Act (MLA), the Truth in Lending Act (TILA), the Nevada Deceptive Trade Practices Act, and the Florida Uniformed Servicemembers Protection Act.

Who is receiving compensation?

The settlement class includes all USAA Bank customers who:

• Received and deposited a remediation check as a result of the SCRA Remediation or the MLA Remediation.
• Were identified to receive a remediation check based on the SCRA Remediation, the MLA Remediation, the EVP Remediation, or the DP Remediation, but did not successfully cash or deposit such remediation payment.

How much can class members get?

The settlement amount of over $64 million will be used to pay court-approved attorneys’ fees and costs, service awards to Class Representatives, all settlement administration costs, and taxes and tax expenses (if any). The remainder of the settlement amount will be distributed to class members.

The distribution will occur in three steps:

1. Step One
1. Payments totaling $33,402,833.59 to class members who were previously sent a remediation payment but did not successfully deposit it.
2. Additionally, a minimum payment of $50 per applicable account will be paid to each class member who was previously sent a remediation payment pursuant to the SCRA Remediation and/or MLA Remediation.
3. The remaining net settlement amount will be paid to class members who were previously sent a remediation payment pursuant to the SCRA Remediation, allocated pro-rata in proportion to such prior SCRA Remediation payment.

1. Step Two
1. Any uncashed settlement checks from Step One will be escheated by the Settlement Administrator.
2. The remainder of uncashed settlement checks and all interest proceeds earned on any settlement amounts held by the Settlement Administrator will be distributed as a second round of payments to class members who successfully received a Step One payment in excess of $250, allocated pro-rata based upon the amount of the previously successfully received payment.

1. Step Three
1. Payment of any unforeseen costs of settlement administration and payment of any untimely requests for reissuance of Step One or Step Two payments.
2. If any net settlement funds remain, they will be distributed to not-for-profit organizations approved by the court providing services to military servicemembers and veterans.

Is proof required to submit a claim?

Proof is not applicable to the USAA Bank Settlement. Class members do not need to proactively provide proof because the Settlement Administrator already has their information.

How to claim an award

To claim an award, you do not need to take any action if you have been identified as a class member. Payments will be issued automatically.

How is the Settlement Fund distributed?

• Settlement Amount: $64,202,833.59
• Attorneys’ Fees and Costs: Not to exceed 27.5% of the settlement amount
• Service Awards to Class Representatives: Up to $20,000 each
• Settlement Administration Costs: TBD
• Taxes and Tax Expenses: TBD
• Net Settlement Amount: Remainder after the above deductions

Important dates

• Deadline to File a Claim: Not applicable as payments are issued automatically
• Final Approval Hearing: August 2, 2024

When is the USAA Class Action Settlement payout date?

Payments will be issued after the court grants final approval to the settlement and any appeals are resolved.

What happens next?

The next steps involve the court granting final approval to the settlement, after which payments will be issued to class members.