USAA

We have been United Services Automobile Association (USAA) members since 1963 but it seems to me that we are increasingly having issues with them. USAA has our life insurance, car insurance (their reason for existence), house mortgage, banking accounts, credit cards, homeowners insurance and a brokerage account.

A few weeks ago they sent me a message saying I would get an important message from them. Well a couple of weeks passed and I just figured that was some kind of phishing trip by someone. And then out of the blue I got the USAA web page block that said I had to "sign up for the web page and agree to their conditions . . ." Among the conditions was a requirement to receive all documents via electronic delivery. I have in the past instructed USAA electronic documents were unacceptable, we require paper documents like bank statements, prospecti, brokerage accounts, reissued insurance policies, etc. I mean, why should I foot the bill to print out these documents, they are obligated to do that job, not me.

Well, I refused to agree to their "new" coercive requirements. And that has resulted in a blocked web page. I can no longer access USAA by the Internet, very frustrating. I wrote to the president of USAA and said why after years of use, I had to "sign up to use the web page." So far the response has been slow, I did get a phone call Monday from USAA saying they were looking into my letter. On that same day, I mailed a ultimatum to their brokerage people that they had to respond with in 15 days or I would transfer the brokerage account to Fidelity. I told the fellow calling me that I had mailed the letter that day. He said, "He would be on the look out for the letter." Good.

I told him that it was directed to their Financial Advisors. He said that he would retrieve the letter. I was civil and I was pointed in my responses. This was not what a 46 year member expected from USAA. And that I had checked with other members and they were not targeted for this "sign up" action. Perhaps it is only a matter of time all members will get that same treatment.

I have been concerned for some time that USAA internal security processes were overboard and paranoid in nature. I can understand that if I had trouble signing in to our accounts, that a challenge question is in order. But not at USAA, you get them out of the blue. I could understand it if I were using a new computer or someone else's computer, but that was not the case. This is overboard and not required.

USAA said that it was necessary to have an ID, a password and pin code to get into their accounts (I do not know of any institution requiring three codes to get in to one's accounts). USAA claims it is federal regulations that require it. Fidelity is certainly a very large banking, insurance, mutual funds and brokerage house. No such tertiary pen required by Fidelity, and no out of the blue challenge questions. It is clear that USAA is going beyond the norm and it is both unnecessary and irritating. It is though it is USAA's assets they are protecting, not ours. Well, they are our assets not theirs.

So it has become difficult for me to deal with USAA. I am in the process of getting a quote for homeowners insurance from Armed Forces Insurance, a similar military oriented company. And they also offer car insurance too. My current dealings with USAA are by USPS or telephone. It certainly costs them more money and is less efficient than the Internet but it is their choice.

I can not roll out of the mortgage or the life insurance policies but I certainly can close my homeowners and auto insurance accounts. And that would trigger a pay out of the Subscribers Savings Account, a euphemism for retaining profits to bank roll the association. In other words, getting liability insurance from another source would cost USAA money.

We'll see what the executive assistant comes up with, what the reply will be. But I fear the security gurus are in charge, not the managers. Humm....