Car Insurance Help

  • Hi Guest, welcome to the help forum. You can get fast answers to your customer service questions here. We have a dedicated team of advocates who are ready to help. Just go to the section that matches your question and ask us!
  • If you've posted a question or issue for our advocates to assist with, please be sure to check back frequently for responses and requests for clarification.
  • Did you know you can get email notifications when something new posts to your favorite forum? It's easy. Just click the "watch" link right next to the "post new thread" button at the top of your favorite forum. The rest is easy. Now you'll never miss another conversation.
  • Want to become an expert user? Drop by the How to use this forum section and all will be revealed. We'll show you how to make the most of your experience.
Oct 9, 2018
5
0
1
31
#1
Good Morning,

I'm in need some of desperate and major help. This is a two part problem.

I had USAA for both my car insurance. I also banked with USAA as well as my primary Bank. My insurance payment was auto debited from my checking account with USAA. In July 2018, I notified USAA Bank regarding fraud on my checking account. As a result of fraud, my account became overdrawn and the insurance company didn't get paid. USAA states that no fraud occurred which I adamantly disagree with. I've asked USAA Bank to reopen the fraud claim and provide documentation to me which they used in their investigation, but that wont. As a result of this, my auto insurance was cancelled. I was never notified that my insurance was going to expire until 9/25/18 . Under NJ state law, the insurance company is required to provide 15 day minimum notice. As luck would it on 9/22/18, I ended up in an auto accident. It was the other driver's fault, not mine. On 9/25/18, the insurance company informed me that NJ is a "No pay, No play" state and I was unable to collect under the other person's insurance. As a result of this I was issued a ticket for being uninsured, I have a totaled car and still owe money on the totaled car.

I need help so the Bank gives me back the money from the fraud claim but also so the insurance is reinstated as they didn't provide applicable notice to me. Can someone advise on how to handle this???
 

Neil Maley

Moderator
Staff Member
Advocate
Dec 27, 2014
13,767
13,213
113
New York
www.promalvacations.com
#2
What type of fraud occurred? What was USAA’s reason for stating no fraud occurred on the account? They usually do a security investigation. When USAA notified you that the payment didn’t go through, didn’t you immediately make another payment to bring yourself up to date? What about your August and September payments? You should have continued paying the policy.

That is going to be key in getting help. You might need to go to your state banking authority. In NJ there is one authority for both insurance and banking.,
https://www.state.nj.us/dobi/index.html

You received notice on 9/25 that your insurance was expiring. What date did they state the effective cancellation date was? You received nothing else since July in either an email or written letter that if you didn’t make a payment your insurance would be canceled?

You might need to call your State Insurance Department for assistance or the State Banking authorities but we need more information. I know my insurance company continues to send emails and letters if a payment isn’t made.
 
Oct 9, 2018
5
0
1
31
#3
My debit card was used fraudulent for translations on my checking account. According to USAA, they claim that the merchant provided them with information including a charge summary and other details indicating the charge was authorized. But when I called the merchants (they are many), managers of the places told me they were never contacted by USAA. I've sent a certified letter return receipt requested to USAA yesterday requesting any and all documentation used in their investigation as allowed under Regulation E. If USAA gave me the money back from the fraud claim, the insurance company would have gotten payment at the end of August 2018.

Originally, the insurance payment was supposed to be debited every 2 weeks from the account but I switched it to a monthly payment in the middle of July. One payment went through for July and the prior to having the 2nd payment debited from my account, I switched it to monthly. When I made the switch, the system old me my August payment due towards the end of the month. I didn't receive any notification that the August payment didn't go through so that's why I didn't make a payment for August. The letter I received on 9/25/18, "Policy canceled pro-rata effective 9/3/18" but at the bottom of the notice it says "In Witness Whereof, we have caused this policy to be signed by our President and Secretary at San Antonio, Texas, on this date September 16, 2018".

Are you guys able to help get my money back from the fraud claim and the policy re-instated?
 
Sep 19, 2015
2,704
3,919
113
48
#4
Oh boy what a mess.

I have some of the same questions as Neil? Why did USAA close the claim? Are you still banking with them?

If this all happened in July did you ever check on your insurance during August and September?

Some of your issues are really legal questions that we cannot answer, such as: When did the insurance lapse from non payment? How long until a lapse becomes a cancellation of policy?

Yes NJ is pay to play, so if a driver does not have valid insurance, even if not at fault, the non insured not at fault driver can not claim against the other insurance.

I am sorry to say you may need a lawyer with the insurance issue. Your problems may be beyond what consumer advocates can offer.
 
Oct 9, 2018
5
0
1
31
#5
USAA states "hey claim that the merchant provided them with information including a charge summary and other details indicating the charge was authorized". Which i dispute because when I called the managers of the stores where my debit card was used, they state no they were no contacted by USAA. I did not check the insurance bill in August as it was set to auto debit on the account. The September payment was due after I was informed that I no longer had insurance.

I no longer bank with USAA. I have filed a complaint with my State Department of Insurance over this issue. If you can't help with the insurance, can you help get my money back from the fraud claim with USAA?
 

Neil Maley

Moderator
Staff Member
Advocate
Dec 27, 2014
13,767
13,213
113
New York
www.promalvacations.com
#6
You have every right to see copies of the supposed charge summary. You told them you did not make those purchases and you wanted copies of the charge receipts?
Regardless of the ongoing dispute - you still needed to pay for the insurance. That is where you made a mistake - by arguing with the cc company instead of making the payment to keep your insurance valid. Did you have notices from the insurance company that you were going to be suspended if you did not make payments?

The fact that you were having a dispute going on has no bearing on your responsibility to continue those payments.

I suggest you contact the state banking authority and file a complaint and also the CFPB

https://www.consumerfinance.gov/complaint/

You have two totally separate issues here - you lost a report of fraud with your cc company but you also didn't pay the bill even though you knew it was past due.


Unfortunately, I am not sure you have a case about the insurance company canceling you. If I was walking down the street and someone robbed my wallet and stole my money, that doesn't make a case on why I can't pay my bills. You erred in not paying the insurance some other way.
 
Likes: krisseye
Sep 19, 2015
2,704
3,919
113
48
#7
USAA states "hey claim that the merchant provided them with information including a charge summary and other details indicating the charge was authorized". Which i dispute because when I called the managers of the stores where my debit card was used, they state no they were no contacted by USAA. I did not check the insurance bill in August as it was set to auto debit on the account. The September payment was due after I was informed that I no longer had insurance.

I no longer bank with USAA. I have filed a complaint with my State Department of Insurance over this issue. If you can't help with the insurance, can you help get my money back from the fraud claim with USAA?
Is the store a national or regional one? The store managers may not have heard from USAA, it could be the card system (ie Visa or Mastercard) that investigated, or it could have been answered on a regional level, or may not have involved store managers but accounting financial people. It is really hard to say.

With autodebit I do not think that one is always notified that payment did not go through. So it looks like the payment was due at the end of Augut early September and when not received in a timely manner the policy lapsed and then there was a cancellation notice.

And you did not look at the account for several weeks and not notice that the payment was made?

The problem with the insurance issue is that it involves hyper technical and legal questions, such as policy lapse vs cancellation and NJ state law, and I think that is somewhat beyond our knowledge and skill level. No one wants to give you incorrect information which messes up your situation even more. I am not one to scream get a lawyer at every turn, but there are some issues where I do not feel confident in giving any advice. Others may feel differently.

Something to consider is that you may eventually get a citation for driving without insurance.

Now with the USAA problem, what evidence did you produce to USAA that the charges were not authorized?
 
Oct 9, 2018
5
0
1
31
#8
Okay, I do appreciate the assistance with the insurance. I'll wait to hear how they respond to the the state department of insurance and then consult with a lawyer.

For the USAA problem, they didn't ask for anything. They didn't ask that I sign anything. I told them via phone that my debit card was lost and that was it. I did speak with a "fraud investigator" who asked me so questions over the phone but that was it.
 
Oct 9, 2018
5
0
1
31
#10
USAA does not have a form online that I can formally dispute items. I did not send anything in writting to them as they didn't ask for it and I'm not familiar with doing that. I have a letter dated july 27, 2018 saying they were investigating my fraud claim. Another letter was dated July 30th which said they completed their investigation.
 
Sep 19, 2015
2,704
3,919
113
48
#12
One needs to notify the bank in writing. I do not know the dates of the transactions and the time to do it may have already passed.

"Lets say you lost your debit card or PIN or either was stolen. If you notify your bank or credit union within two business days of discovering the loss or theft of the card, the bank or credit union cant hold you responsible for more than the amount of any unauthorized transactions or $50, whichever is less. If you notify your bank or credit union after two business days, you could be responsible for up to $500 in unauthorized transactions.

Also, if your bank or credit union sends your statement that shows an unauthorized debit, you should notify them within 60 days. If you wait longer, you could also have to pay the full amount of any transactions that occurred after the 60-day period and before you notify your bank or credit union. In order to hold you responsible for those transactions, your bank or credit union would have to show that if you notified them before the end of the 60-day period, the transactions would not have occurred."

https://www.consumerfinance.gov/ask...r-money-missing-from-my-bank-account-en-1017/

But at least you have the letters about the fraud claims so they cannot deny receiving your complaint. Did they send you any information on how to appeal the issue?

Did you physically lose the card or was the number stolen?
 
Mar 17, 2015
544
760
93
38
#13
I think you may need an attorney to help sort this all out. If you cannot afford one, you may try a local law school or the local law clinic.
Even though your payment was not made, this is really on you, especially on a bank account. I have auto debits from my bank account and I always check to make sure they have gone through and that there are adequate funds to cover them. If the money was not there for the payment, even if it was due to fraud, you were still responsible for the payment. Also, did you not notice that no withdrawal was made in August?
 
Last edited:
Likes: Neil Maley
Feb 21, 2018
64
117
33
56
#14
It's surprising to hear this about USAA. I've been a member for 40 years and have always had stellar service.

Though not a debit card, I've had unauthorized charges on my USAA Mastercard twice since opening the account years ago. Both time, I called USAA to report the unauthorized charges. The agent then went line by line through all charges on the bill from that point back a few days to ask me if I made them or they were unknown.

Afterwards, a letter was mailed to me detailing the charges I stated were false and I was asked to sign and return that form.

Did they go through the detail of the charges to determine what was fraudulent?
 
Likes: Nancy