Change in USAA Policy

[Markovian]

I found the following post on another credit-related forum:

"Hi all.... for USAA customers who have "caused financial harm" [to USAA] in BK, here's info you may not know- I phoned USAA yesterday to make a change to our auto policy. Last summer, I was told by a rep that we would be non-renewed within the year. At the time, we were allowed to keep all current policies in effect, but weren't allowed to have anything new; i.e.- we could not take out a renter's policy with them when we moved from our house.

Yesterday, I was told that due to the current state of national finances, they have updated their policies: when there is a BK involved, members will now continue to be eligible for all services..... except loans, of course. We can now use them for our renters insurance! YAY.

'Hope that is useful info to some of you who have been wondering. "

Can anyone confirm this? If this is true, this is tremendous news for USAA members who IIB a debt with them.

[halloweendmb1]

that is discrimination I would think

[Markovian]

I don't think it is discrimination. As a private membership based company, they are free to revoke membership for any reason, especially when one has caused the company a loss through bankruptcy. This has been their policy for quite a while. I begged to reaffirm a $1,500 loan when I filed back in January, and their bankruptcy department refused - and was quite rude about it. I kept thinking that there was no way that the bankruptcy department was staffed by USAA employees! In any case, I really hope this is the case. If anyone can confirm, it would be very much appreciated. I would call myself, but I was recently discharged and still have online access to everything - If I happened to fall through the cracks, I don't want to alert them to that fact!

[hopeforus]

That would be great. I have paid our car/house insurance up till August but was expecting them to cancel it when I go to renew. But, I don't think we will be filing by August... we are waiting to hear about our loan mod first. So maybe. Nice to know. We got our "you are causing us harm" letter about a month ago. I just checked and we still have access to our online accounts. Thought they would be shut down by now.

[Markovian]

More Evidence

I just located the following on a Consumer Affairs website (See Bold):

After not having my usual automatic deduction for insurance debited from my account from USAA this month, I called to see what was happening. I was informed that on April 1, 2009 a certified letter was sent to my home address informing me that my auto insurance policy was not being renewed based on a bankruptcy. OK, fine... Here is the problem - I never received a certified letter and no one in my household signed for a certified letter.

I have been uninsured on three vehicles since May 12, 2009 with absolutely no idea. The customer service agent informed me that legally all they have to do is send the letter. It doesn't matter if I do not receive it. How is that legal? If that is the case, what is the point of sending it certified? After her explanation, she told me that USAA had reversed the policy and that they would in fact renistate my policy effective midnight tonight. Obviously I had her renew the policy until I can find anotuher insurance provider but, I really do not understand how a certified letter which no one in my household has signed for can legally hold up. I have acomplete renewal packet that was sent out in April that told me I had a renewed policy.


Maybe this is true?