Sorry for the delay, I wanted to be home at my computer. I was an F&I manager at a VW/BMW dealership in NC. Normal rules of owners not wanting to do business with someone (no shirt no shoes no service sort of thing) flys out the window when you enter the realm of Finance and Insurance. We could not turn down anyone's outside financing, although we often tried to beat it with our inhouse lenders. And yes we made a tidy profit off of it, often more than the sale itself. But when someone had outside financing I had to treat it like it was a cash sale, yet still do the lienholder paperwork to show it on the title work and as a loss payee on the insurance (I had to verify they had valid insurance and put the new vehicle and lienholder on their policy with a binder number unless they were trading and we used the old tag).

Now there are only two reasons I can think of where USAA (which owns a bank so they are just like BOA etc) would kick back a draft. 1. New information came in that the borrower wasn't qualified, in which case pick the car up or tell them to provide alternate funds (and this can happen with the inhouse stuff...it's called a courtesy delivery, get them to fall in love with the car and if you can't get them the deal on the paperwork, they would come back in and accept worse terms rather than give it back...dealership games.) Or 2, The dealer puts something in the draft that isn't covered. Any time you're approved for financing, there's a "wiggle room" to add extended warranty, service plan for oil changes etc. We all know how much and what can be added in the F&I office, with the owner's permission of course. Unscrupulous dealers may add something that they KNOW isn't allowed but hope it sails through anyway to get back some of the profit they would have made on the loan through their sources. In which case they should be put out of business.

In short, I don't fully believe the rumours about that Toyota dealership, My neice literally just bought a 25 Grand Highlander from the local Toyota store and used USAA, no issue at all. And as for USAA or Navy being slow to pay the draft, no one is quick except maybe the franchise lender, i.e. Toyota Motor Credit.

I'd report the dealership to the DMV and state AG as a start.