A Settlement has been reached in a class action lawsuit claiming that Navy Federal Credit Union (“Navy Federal”) breached its contract with member checking Account Holders and improperly assessed and collected Overdraft Fees on certain transactions. Navy Federal maintains it did nothing wrong, but has agreed to settle the lawsuit to avoid the cost, delay, and uncertainty of litigation. The Court has not decided which side is right.

A Settlement Fund of $24.5 million has been established to pay Settlement Class Member Payments, any attorneys’ fees, costs and Service Awards ordered by the Court, any Settlement Administration Costs in excess of $500,000, any payment to Navy Federal for Settlement Administration Costs incurred as permitted under this Settlement, and any cy pres payment required under this Settlement. Current and former Navy Federal members who had a Navy Federal checking Account(s) may be eligible for a Settlement Account Payment from the Settlement Fund.

Your legal rights were affected whether you acted or did not act. Read this website carefully.


Summary of Your Legal Rights and Options in This Settlement
Do Nothing and Receive a Payment or Account Credit If you are entitled under the Settlement to a payment or Account credit, you did not have to do anything to receive it. The court has approved the Settlement and if you did not exclude yourself, you automatically received a payment or Account credit.
Exclude Yourself from the Settlement
Deadline: April 20, 2019		 The deadline to exclude yourself from the settlement was April 20, 2019. If you did so, you will receive no benefit from the Settlement, but you retain your right to sue on your own.
Object
Deadline: April 20, 2019		 The deadline to object to the settlement was April 20, 2019. There were no objections to the Settlement.

These rights and options — and the deadlines to exercise them — are explained further on this website.

Current Status

Per the terms of the Settlement Agreement, given the amount of money that remains in the settlement fund from initial disbursement uncashed checks, a subsequent distribution of available funds was issued to Class Members who previously received an account credit or cashed their initial settlement check. Account credits to current account holders occurred in late January 2021, and checks to former account holders will be mailed in late February 2021.

Important Dates
  • July 22, 2012 – November 20, 2017
    Class Period
  • April 20, 2019
    Deadline to Exclude Yourself from the Settlement
  • April 20, 2019
    Deadline to Object to the Settlement
  • May 20, 2019 at 11:00 a.m. PDT
    Final Approval Hearing
  • May 28, 2019
    Order Granting Final Approval
  • August 5, 2019
    Account Credit Distribution
  • August 29, 2019
    Settlement Check Distribution
  • November 5, 2020
    Final Reissue of Initial Disbursement checks
  • December 10, 2020
    Initial Disbursement complete
  • Late January 2021
    Subsequent Distribution Account Credits
  • Late February 2021
    Subsequent Distribution Checks Mailed