USAA and bankruptcy

[boinga]

There have been a few accounts on the forum about experiences with USAA after filing BK. One person said their insurance was not going to be renewed. And I found this, with several accounts of USAA sticking it (back) to people after a BK:

http://www.insuranceusa.com/directoryreviews.php?id=USAA

"If you had a bankruptcy where USAA incurred a loss, their new policy is now to take away your on-line banking and insurance access; it's essentially their way of taking punitive action against you even though your debt may have been discharged. USAA doesn't care if it impacts their military members."


Has anyone had similar experiences? I have my auto and renter's insurance with them, at very good rates, never had a claim, never missed a payment on anything right up until filing date. But my MC was through them and is part of my BK.

Here is another account that includes a letter sent by USAA after a BK filing. I got the same endless phone calls for several weeks AFTER I filed until I called them back and told them I had filed. My lawyer said that was b.s., they were notified like everyone else.

http://ripoffreport.com/reports/0/096/ripoff0096843.htm

[BKcrazy]

Yup. I couldn't even get to my online statements for banking!!! And I needed those for the trustee. They were going to charge me $10 a statement, and I have checking and savings with them. I b*tched up a storm, got a manager and less than two weeks later, I got my statements. A credit card rep called me on Nov 12-my bday no less, and that was ten day after filing. I hung up and called back, talked to someone nicer and they notated my account properly and left me alone. I decided I don't want to keep my car, so I stopped paying. That loan had been current.

They aren't renewing my ins policies either as I said in the other thread.

It does seem that they are enforcing harsher tactics now. And while I'm not military, I know the military doesn't get paid a lot. Which USAA knows, so maybe they could add a human element to their policies?

[boinga]

It's true. I just went to log in to my USAA account to check some details on my auto policy, and here's what I got:


We're Unable to Complete Your Request

Due to past difficulties, we can no longer offer you access to usaa.com. If you feel that we have restricted your access in error, please call toll-free 1-800-531-8111. (2:5701)

Guess it's time to check Geico. (That's actually why I was looking up my USAA policy to start with...)

[BKcrazy]

I did a quote with Geico....I've got something on my driving record, and I had a quote with USAA for ins in another state, Geico was much cheaper. Even with the BK being filed it was super low, and when I get another car, I'm calling Geico again.

[doglover]

I have auto insurance and Homeowners insurance with USAA and I can no longer view anything on-line either. I do get my insurance bills in the mail so I don't really care. Lets see.......pay them $10,000 outside bankruptcy so I can look at my bill on-line.......thanks but no thanks, they can keep on-line access from me...woopty do!

[BKcrazy]

I have auto insurance and Homeowners insurance with USAA and I can no longer view anything on-line either. I do get my insurance bills in the mail so I don't really care. Lets see.......pay them $10,000 outside bankruptcy so I can look at my bill on-line.......thanks but no thanks, they can keep on-line access from me...woopty do!

Well, be prepared for the letter I got today. Exercising their right to not renew you.

[ameliabedilia]

We have renters and auto with them and they have been okay even though we have bk'd $20000+ with them. I have not tried to get on line to my account, but our payment was a little late last month and they sent an email, so maybe it still works. I just updated our new addresses yesterday. I was thinking about dropping renters insurance and the guy told me that if I did, there would be the possibility of them not letting me get that insurance again. I asked if our car ins. was okay and he said it was fine. So, who knows?

Also, last month I got a letter from them (I filed in October) requesting that we cut up our credit card with them since they had closed our account due to Chapter 7 Bankruptcy filing
I thought that was a no brainer, but maybe some people think they can still keep a card they charged up $20000 and didn't pay!

[lrprn]

We're in Ch 13 and have had USAA insurance for our cars and term life for 30 years. They restricted our online access to our accounts after we filed, but we still have our car insurance and our life insurance with them 18 months after we filed. No "you're outta here" letters have arrived in the mail yet.

In case you think USAA didn't take a loss in our bankruptcy, they sure did. We will discharge $12,000 we owed on their credit card because they chose not to file a claim in our case.

Every situation is different. Gotta keep things in perspective and go with the real percentages - thousands of USAA members file bankruptcy yearly and a large % of those policies aren't cancelled.

[boinga]

Well, I checked GEICO and AIG for auto and renters insurance, and for virtually the same price I can move my policies, AND get full service (including online). I switched both of them, effective end of the month.

I'm not going to sit and wait for USAA to cancel and then find out my rates elsewhere are sky-high because my BK has affected my "insurance score" or something. Might as well get it out of the way now while I know my rates are good. And I do use their online services. Or did. LOL. Tomorrow it will be by phone, to cancel.

[BKcrazy]

My cc was at $7300 or so. And I have a car loan with them. I had intended to keep my car, but I'm going to give it back now. So...they don't know that yet, but still, if one was ok with $20k in bk, this is odd. I've been a member for 12 years.

[coma]

We bank with USA but have no credit products with them, nor did we file on them for anything, so we're ok. They actually gave us a ridiculously lower insurance rate for car insurance than what w paid with Geico. I only wish they would insure motorcycles again.

[MomIcantFindmy]

I got mad at USAA back in 2003 when we had a storm hit and they tripled our homeowners ins. (No claims prior 20 years) So we moved our homeowners to Armedforces Ins. Then in 2005 when we needed renters insurance AFI was cheaper than USAA. I am thinking about checking around for car insurance but when I did that before(2005), no one could beat USAA. That said we are including $12000 to USAA in our BK. Maybe I won't have a choice if USAA decides to get nasty.

[BKcrazy]

I thought about this issue today, maybe the difference is what chapter you filed.

[funEface]

Our policy just renewed so I thought we were in the clear. I called for another reason about my policy and was informed that they should not have issued my renewal and that be prepared- they will be canceling me in June. He did say that there a few states that they do not cancel insurance policies on just because of a bankruptcy filing. (KS is not one of them). This was the only really negative effect of our bk- and the only portion that upsets me. I loved USAA. But their insurance is not worth the 12k cc debt we discharged. Let's just hope this ride through on both our auto loans doesn't get screwed in some way. (they never sent reaffirmation notices for the auto loans even though that was what we said we intended on doing).

BTW Even with my bk reporting and all TLs saying IIB All State was only a slightly bit higher than USAA. I haven't checked Geico. Progressive was too much. Shop around. ;)

[BKcrazy]

There is a difference with canceling and not renewing.

Geico is usually less than USAA. And they are a pretty good company.