USAA Savings Consumer Loan Complaint

USAA Savings Consumer loan department,

Vehicle loan Shopping for a loan or lease North Carolina

I purchased a car on Saturday, -. I was pre-approved for a loan from USAA for a 48 month 2.5 % fixed rate auto loan. I went to the auto dealership, and they were able to offer me a 1.99 % fixed rate. I called USAA to see how to close out the loan I was pre-approved for, and to see if they could match or beat the dealer 's rate ( through - - - ). The representative said since I had been in the -, and I was a USAA member for 20+ years, he could give me a $ - loan at 1.49 %. I was thrilled, and told the dealer I would n't use their financing. But when the representative from USAA told me the 5 year loan for $ - would be almost $500.00 a month that did n't seem right. After questioning the USAA representative he told me that there was a $1200.00 origination fee for the car loan. This was not mentioned at the beginning of the process, and was far from transparent. That effectively added over 4 % to the interest rate, but was hidden as a fee. I 've been in banking for over 20 years, and knew enough to push back and ask questions. A brand new - or a - would not have known about the CFPB and what UDAP is. Perhaps USAA would have eventually clarified the fee and it 's impact to my loan. But hiding $1200.00 on a $ - loan is completely unacceptable. This materially changed the transaction, it was not disclosed, and it intentionally targeted military service members or former service members. I strongly believe this was an Unfair or Deceptive Act or Practice ( UDAP ). If this did not violate UDAP in the letter it definitely violated the spirit.