The defendants in this case are a group of USAA companies. According to the complaint, in 2019, USAA paid money “to remedy its improper pricing practices that caused more than 130,000 USAA automobile insurance customers to be charged late fees illegally over an eight[-]year period starting in 2011.” However, it claims that USAA did not pay everything it owed these customers because it did not pay any interest on the money it had withheld from them.
The class for this action is all individuals who, via the Consent Order of the Insurance Commissioner of Maryland dated July 30, 2020, in Case No. MIC-2020-08-002, were ordered to have refunds paid to them, of late fees charged by the defendants in this case between August 27, 2011 and September 30, 2019, and who were not paid interest on the late fees refunds.
The companies include United Services Automobile Association (USAA), which is the parent company of the other three—USAA General Indemnity Company, Garrison Property and Casualty Company, and USAA Casualty Insurance Company—together referred to as USAA.
This class action concerns a previous problem USAA had with the Maryland Insurance Commissioner (MIC). Between June 2011 and August 2018, the complaint says, USAA improperly charged some 131,000 of its insurance policyholders more than $8 million in late fees, without MIC’s approval, which violated Maryland insurance laws. USAA stopped charging this fee to those with Maryland billing addresses in August 2018, but continued to charge them to policyholders with out-of-state billing address.
USAA then got MIC’s approval to begin charging late fees as of January 23, 2019, but they were not permitted to be higher than $10. Between January and September of that year, USAA imposed late fees of more than $10 to those with out-of-state billing addresses. MIC eventually decided that USAA had to refund the late fees.
The complaint alleges, “Despite the MIC investigation and resulting Consent Order to address USAA’s Maryland Insurance Article violations, USAA failed to fully compensate the members who had been improperly charged late fees.” That is, USAA refunded the same amount that the policyholders had paid in late fees, but it did not pay any interest on the money. This class action requests the additional payment of interest on the money.
The plaintiff in this case, Walter Black, III, has had an insurance policy with USAA since 1978 which is currently underwritten by USAA Casualty Insurance Company. He was improperly charged late fees on three occasions (in August 2013, September 2013, and March 2014). In March 2020, he received a $30 credit in his account that was labeled, “Late Fee Reversed.” No reason or details were given as to the about the reversal.
Article Type: LawsuitTopic: Insurance
Most Recent Case Event
USAA Refunded Insurance Late Fees Without Interest Complaint
June 25, 2021
The defendants in this case are a group of USAA companies. According to the complaint, in 2019, USAA paid money “to remedy its improper pricing practices that caused more than 130,000 USAA automobile insurance customers to be charged late fees illegally over an eight[-]year period starting in 2011.” However, it claims that USAA did not pay everything it owed these customers because it did not pay any interest on the money it had withheld from them.
USAA Refunded Insurance Late Fees Without Interest ComplaintCase Event History
USAA Refunded Insurance Late Fees Without Interest Complaint
June 25, 2021
The defendants in this case are a group of USAA companies. According to the complaint, in 2019, USAA paid money “to remedy its improper pricing practices that caused more than 130,000 USAA automobile insurance customers to be charged late fees illegally over an eight[-]year period starting in 2011.” However, it claims that USAA did not pay everything it owed these customers because it did not pay any interest on the money it had withheld from them.
USAA Refunded Insurance Late Fees Without Interest Complaint