USAA Bank $64M Servicemember Interest Rates Settlement

If you are a USAA Bank customer who received and deposited a remediation check due to the Servicemember Civil Relief Act (SCRA) or Military Lending Act (MLA) remediation, you may be eligible to claim a portion of a class action settlement.

USAA Bank has agreed to pay $64,000,000 to settle a class action lawsuit for allegedly failing to properly reduce interest rates on servicemember accounts as required by law.

Who are the class members?

The class members include all USAA Bank customers who:

• Received and deposited a remediation check due to SCRA or MLA remediation
• Were identified to receive a remediation check based on SCRA, MLA, Extended Vehicle Protection (EVP), or Debt Protection (DP) remediation but did not cash or deposit it

How much can class members get?

The settlement provides for a distribution of approximately $64 million.

The payments are structured as follows:

• Step 1: Class members who were sent a remediation payment but did not deposit it will receive a share of $33,402,833.59.
• Step 2: Class members who received a remediation payment under SCRA will receive a minimum of $50 per account, with additional amounts allocated pro rata.
• Step 3: Class members who received a remediation payment under MLA will also receive a minimum of $50 per account.

The average payment is estimated to exceed $200.

Class members do not need to take any action to receive their payment.

Payment methods

• Direct deposit to a qualifying USAA Bank account
• Mailed check
• Electronic payment options

$64 Million settlement fund

The settlement fund of $64,000,000 will cover:

• Attorneys' fees and costs not to exceed 27.5% of the settlement fund
• Service awards to class representatives
• Administrative costs
• Taxes and tax expenses

The remaining amount will be distributed to class members.

Important dates

• Deadline to Opt Out of the Settlement: November 21, 2024
• Final Approval Hearing: January 7, 2025

When is the USAA Bank payout date?

If the court approves the settlement at the final approval hearing scheduled for January 7, 2025, payments will be distributed to class members after any appeals are resolved.

Why is there a class action settlement?

The lawsuit alleges that USAA Bank failed to reduce interest rates for servicemember accounts as required by the SCRA and MLA, among other claims. The parties settled to avoid the costs and uncertainties of a trial.