What You Need to Know About the $64M USAA Class Action Lawsuit Pay Out

Published: August 8, 2024 at 4:33 PM EDT

Updated: April 22, 2026 at 5:55 PM EDT

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What You Need to Know About the $64M USAA Class Action Lawsuit Pay Out

Service members have protections from the federal government to help protect their finances through the Servicemembers Civil Relief Act (SCRA). This applies to fees and interest rates on loans aimed at preventing compound interest from charging our military who are busy performing their duties. While they didn’t admit to violating the SCRA, a settlement involving the USAA class action lawsuit is coming to pass. This is after allegations were made against the financial institution.

USAA Class Action Lawsuit Settlement of $64M for Those Affected

A USAA class action lawsuit has finally come to a settlement agreement to pay $64.2 million. This is after allegations of their banks not adhering to the SCRA. Subsidiaries USAA Federal Savings Bank and USAA Savings Bank didn’t say that they were responsible for charging high-interest fees; however, they would settle to providing millions of dollars back to the military community. The case began in November 2021 after 210,000 members filed the class-action suit with four plaintiffs alleging lower interest rates and fees were not implemented following SCRA. Those filing the class action lawsuit against USAA alleged that failing to provide lower rates caused an inflated balance for service members, elevating interest even further and creating higher balances as a result.

Bulls et al. v. USAA Federal Savings Bank et. al.

Compounding the issues alleged within the USAA lawsuit is the claim that the banks hid the overcharges from their customers, who are made up of the military community. Not only are the claimants saying that USAA violated federal law but also its own Military Benefits Program. The USAA lawsuit would show 546 violations of the SCRA by the U.S. Treasury's Office of the Comptroller of the Currency and another 54 violations of the Military Lending Act. Additionally, it was alleged that reservists ended up having to pay not only high fees but also deal with their vehicles being repossessed wrongfully. All of this happened while USAA got a $85 million fine in 2020. This is because it didn’t have anything in place to ensure compliance to operate within the law.