The “credit union on steroids” has gone to mandatory binding arbitration for all disputes, removing customers’ ability to successfully sue them if things go wrong. Previously, USAA had arbitration as an option, but allowed members to opt out. Now, if you want to opt out of arbitration, you’ll have to close your accounts.
Here’s how it was explained in the 85-page PDF USAA recently sent out to its members:
Changes and clarifications to the Depository Agreement And Disclosures
Arbitration — page 51
We added an option for binding arbitration to resolve disputes about your account. Either you or USAA Federal Savings Bank may elect to resolve a dispite through binding arbitration. By keeping your account and continuing to transact on the account, you are agreeing to the use of binding arbitration for any disputes in accordance with this provision. PLEASE REVIEW THIS PROVISION CAREFULLY.
Action you may choose to take
If you do not want to be subject to binding arbitration, you must close your account.
Interesting that USAA is making arbitration mandatory as other banks are backing away from the practice.