USAA Complaint - USAA violates constitutional rights!
I recently received correspondence from USAA with regards to my credit card. Included with this letter was an arbitration agreement. As a result, since I am not able to opt out of this agreement, I just requested them to cancel my credit card.
I will not do business with a company that systematically takes away my 7th Amendment Constitutional right to a trial by jury. As a former military officer, I was sworn to protect and defend our constitution. Like it or not, the 7th Amendment is part of that Constitution. USAA, of all companies, should support this oath that we all take and not force us into agreements that violate it.
I understand the intent of USAA to dis-encourage frivolous lawsuits. However, our court system has protections built in that prevent frivolous lawsuits from making it very far. USAA should rely on such checks and balances, as opposed to resorting to requiring its members to surrender their Constitutional rights in order to do business with them. I support arbitration as a practice where BOTH parties agree to it, post-dispute. But the current agreement requires members (before any dispute arises) to agree to let USAA solely choose arbitration regardless of whether it is in the member's best interest to do so.
I raised this issue in a previous email with regards to the online agreement and received a letter back from USAA management basically saying "tough, this is the way it is. Deal with it". I am dealing with it by canceling my account.
Lastly, I have requested a list of all USAA products that I own that require me to agree to pre-dispute, binding, mandatory arbitration. I plan on going through each account and determining whether it makes sense to also cancel those products as well.
Bank of America recently changed their policy to not require pre-dispute, binding, mandatory arbitration. USAA should follow suit or plan to lose business to those with more fair business practices.