On December 18, 2024, the CFPB issued a comprehensive cease-and-desist order against USAA Federal Savings Bank to require the bank to correct a range of deficiencies. The order replaces prior cease-and-desist orders issued against the bank in 2019 and 2022.
The OCC took the action against USAA in response to a series of identified unsafe or unsound practices within the bank's operations. These practices were related to various critical areas, including management effectiveness, earnings stability and reporting, information technology systems, consumer compliance regulations, and the integrity of internal audit processes. Additionally, there were significant violations tied to the bank's suspicious activity reporting duties. Furthermore, the bank failed to adhere to the OCC's Heightened Standards requirements specifically established for large banking institutions.
The order requires the bank to take comprehensive corrective actions to enhance its risk governance, compliance risk management, information technology management, fraud risk management, and third-party, affiliate, and shared services risk management. The order also imposes limitations on the bank’s ability to add certain new products and services, as well as expanding its membership criteria.
Read the OCC’s press release here.
The consent order can be found here.