Frequently Asked Questions

  1. Why did I receive a subsequent Settlement payment?

    Per the terms of the Settlement Agreement, given the amount of money that remains in the Settlement Fund from uncashed initial disbursement checks, a subsequent distribution of available funds was made 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 were mailed to former account holders on February 24, 2021.

    Please negotiate the check promptly. Checks indicate when they expire and are not negotiable after this date.

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  2. Why didn’t I receive a subsequent Settlement payment?

    If you did not receive a subsequent Settlement payment, you did not meet the eligibility criteria. To be eligible to receive a subsequent Settlement payment you must have

    1. Received an initial Settlement account credit or
    2. Received an initial Settlement check and have negotiated that check prior to its expiration date.
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  3. Can I dispute the amount of my Settlement payment?

    You cannot dispute the amount of your Settlement payment, and the deadline to object to the Settlement was April 20, 2019.

    The amount of your Settlement payment is final and represents the amount to which you were entitled under the terms of the Settlement Agreement. The Court approved the Settlement, including the methodology used to compute the amount of Settlement payments, at the Final Approval Hearing on May 20, 2019.

    Please negotiate the check promptly. Checks indicate when they expire and are not negotiable after this date.

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  4. Can I have my subsequent Settlement check reissued?

    All reissue requests must be sent in writing to the Settlement Administrator at the address listed below. All requests must include your full name, your return address, and your signature.

    Navy Federal Overdraft Settlement Administrator
    P.O. Box 3230
    Portland, OR 97208-3230

    If the name of the Class Member on the check should be changed, please send in documentation, as applicable, according to the following list:

    1. Name Change – If your name has changed, please provide documentation showing this to be the case, which can include documents such as a marriage certificate, divorce decree, or court papers indicative of a name change.
    2. Name Removal – In order to have a name removed from a check reissue, either have both parties on the check sign a letter requesting the name to be removed or provide documentation that shows that one party is unable to negotiate the check (i.e., death certificate).
    3. Deceased Class Member – If the Class Member indicated on the check is deceased, please submit acceptable documentation showing that you are the beneficiary of his or her Estate. Acceptable documentation is a death certificate together with the pertinent portion of the Will or Court Order/Letters Testamentary naming you as Personal Representative, Administrator, Executor, or Executrix.
    4. Incapacitated Class Member – If the Class Member cannot act on his or her own behalf, acceptable documentation is a Power of Attorney, or guardianship or custodial paperwork.
    5. Closed Business – If you are the legal representative of a business which is no longer active, please include a letter with instructions for the name that should be included on the replacement check, as well as documentation proving you are authorized to act on behalf of the business. Documentation may include Articles of Incorporation, Articles of Organization, Articles of Dissolution, or any other similar legal documentation that explicitly states the individual is an acting party for the business.

    We will review the letter and documentation and will contact you if more information is required.

    For reasons of security, a check reissue cannot take place until either the original check is received back by us, a mailing has been returned to us as undeliverable, or the original stale date of the check has passed or expired.

    Because one of these events must occur before we can act on your request, it is not possible for us to provide an estimated date for the reissue to take place. We thank you for your patience.

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  5. Can I have my initial Settlement check reissued?

    We are no longer authorized to issue replacement initial checks. Furthermore, all of the remaining funds from non-negotiated initial Settlement checks have been redistributed to eligible participants via a subsequent distribution in early 2021.

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  6. Why is there a Notice?

    A Court authorized the Notice because you had a right to know about the Settlement of this class action lawsuit, and about all of your options, before the Court decided to grant Final Approval to the Settlement. The Postcard Notice, in addition to the Long Form Notice, explains the lawsuit, the Settlement, and your legal rights.

    Judge Cynthia Bashant, of the U.S. District Court for the Southern District of California, is overseeing this case. The case is known as Jenna Lloyd, et al. v. Navy Federal Credit Union, Case No. 17-cv-1280. The people who sued are called the “Plaintiffs.” The Defendant is Navy Federal Credit Union.

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  7. What is this lawsuit about?

    The lawsuit claims that Navy Federal breached its contract with member checking Account Holders and improperly assessed and collected Overdraft Fees on certain transactions.

    The Second Amended Complaint in this Action, available here, contains all of the allegations and claims asserted against Navy Federal. 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.

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  8. What is an overdraft fee?

    An overdraft fee may be assessed to any person who has or had any interest, whether legal or equitable, in any member checking account maintained by Navy Federal in the United States during the Class Period, for items paid when the account has insufficient funds.

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  9. Why is this a class action?

    In a class action, one or more people, called "Class Representatives" (in this case, two Navy Federal members who were assessed certain Overdraft Fees on Debit Card transactions), sue on behalf of people who have similar claims.

    All of the people who have claims similar to the Class Representatives are members of the Settlement Class, except for those who exclude themselves from the class.

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  10. Why is there a Settlement?

    The Court has not decided in favor of either the Plaintiffs or Navy Federal. Instead, both sides agreed to the Settlement. By agreeing to the Settlement, the Parties avoid the costs and uncertainty of a trial, and Settlement Class Members receive the benefits described in FAQ 12. The Class Representatives and their attorneys think the Settlement is best for everyone who is affected.

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  11. Who is included in the Settlement?

    If you received Notice of the Settlement from a postcard or email addressed to you, then you are a member of the Settlement Class. However, even if you did not receive a postcard or email with Settlement Notice, you may still be a member of the Settlement Class, as described below.

    You are a member of the Settlement Class if you had a Navy Federal checking Account and were charged Overdraft Fees under Navy Federal’s Optional Overdraft Protection Service (OOPS) on transactions that were authorized into a positive available balance between July 22, 2012, through November 20, 2017, excluding members who enrolled in OOPS for the first time after February 13, 2017.

    If this did not happen to you, you are not a member of the Settlement Class. You may contact the Settlement Administrator if you have any questions as to whether you are a member of the Settlement Class.

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  12. What does the Settlement provide?

    Navy Federal has agreed to establish a cash Settlement Fund of $24.5 million from which Settlement Class Members received payments or Account credits based on the number of Settlement Class Members and the amount of Relevant Overdraft Fees each Settlement Class Member was charged as a result of Navy Federal’s assessment of Overdraft Fees on transactions that were authorized and approved into a positive available balance. In addition to the Settlement Fund, Navy Federal has agreed to separately pay Settlement Administration Costs up to a maximum of $500,000. The Settlement Fund was also used to pay Service Awards for the Plaintiffs, attorneys’ fees awarded to Class Counsel, reimbursement of Class Counsel’s litigation expenses and costs, and any payment to Navy Federal for Settlement Administration Costs incurred as permitted under the Settlement.

    Any Residual Funds that are not feasible and practical to distribute to individual Settlement Class Members will be provided to one or more charitable organization (“cy pres” recipients) proposed by the Parties and to be approved by the Court that work to promote financial literacy, including for members of the military or veterans.

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  13. What did I give up by staying in the Settlement Class?

    If you stayed in the Settlement Class, all of the decisions by the Court bind you, and you gave Navy Federal a “release.” A “release” means you cannot sue, continue to sue, or be part of any other lawsuit against Navy Federal about the legal issues in this case. Section XIII of the Settlement Agreement contains the release and describes the precise legal claims that you give up if you remained in the Settlement. The Settlement Agreement is available here.

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  14. How do I get out of the Settlement?

    If you did not want benefits from the Settlement, and you wanted to keep the right to sue, or continue to sue, Navy Federal on your own about the legal issues in this case, then you must have taken steps to get out of the Settlement. This is called excluding yourself, or “opting-out” of, the Settlement Class.

    The deadline to exclude yourself was April 20, 2019.

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  15. If I did not exclude myself, can I sue Navy Federal for the same thing later?

    No. Unless you excluded yourself, you gave up the right to sue Navy Federal for the claims that the Settlement resolves. You must have excluded yourself in order to try to pursue your own lawsuit.

    The deadline to exclude yourself was April 20, 2019.

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  16. If I excluded myself from the Settlement, can I still receive a payment?

    No. You will not receive a payment or Account credit if you excluded yourself from the Settlement.

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  17. How do I tell the Court that I don’t like the Settlement?

    If you are a Settlement Class Member and did not request to be excluded from the Settlement Class, you could have objected to any part of the Settlement, the Settlement as a whole, Class Counsel’s requests for fees and expenses and/or Class Counsel’s request for Service Awards for the Plaintiffs. To object, you must have submitted your objection by private courier (e.g., FedEx) or First-Class Mail to the Clerk of the Court, Class Counsel, and Navy Federal’s counsel.

    The deadline to object was April 20, 2019.

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  18. What is the difference between objecting and asking to be excluded?

    Objecting is telling the Court that you do not like something about the Settlement. You can object to the Settlement only if you did not exclude yourself from the Settlement. Excluding yourself from the Settlement is telling the Court that you don’t want to be part of the Settlement. If you excluded yourself from the Settlement, you have no basis to object to the Settlement because it no longer affects you.

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  19. Do I have a lawyer in this case?

    The Court has appointed the following lawyers, known as "Class Counsel," to represent you and others:

    Jeff Ostrow
    Jonathan Streisfeld
    KOPELOWITZ OSTROW, PA
    1 West Las Olas Blvd.
    Ste. 500
    Fort Lauderdale, FL 33301
    Hassan Zavareei
    Andrea Gold
    TYCKO & ZAVAREEI, LLP
    1828 L Street NW
    Ste. 1000
    Washington, DC 20036
    Taras Kick
    THE KICK LAW FIRM, APC
    815 Moraga Drive
    Los Angeles, CA 90049
    Richard D. McCune
    McCUNE WRIGHT AREVALO, LLP
    3281 East Guasti Road
    Ste. 100
    Ontario, CA 91761

    Class Counsel will represent you and others in the Settlement Class. You will not be charged for these lawyers. If you want to be represented by your own lawyer, you may hire one at your own expense.

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  20. How will the lawyers be paid?

    Class Counsel requested up to 35% of the Settlement Fund for attorneys’ fees, plus reimbursement of their litigation expenses and costs incurred in connection with prosecuting this case. The fees and expenses awarded by the Court were paid out of the Settlement Fund. The Court determined the amount of fees and expenses to award. Class Counsel made their request for attorneys' fees and expenses on April 5, 2019.

    Class Counsel also requested Service Awards of $5,000.00 be paid to the Class Representatives from the Settlement Fund for their service to the entire Settlement Class. The Class Representatives made their request for Service Awards on April 5, 2019.

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  21. When and where will the Court decide whether to approve the Settlement?

    The Court held a Final Approval Hearing at 11:00 a.m. on May 20, 2019, at the United States District Court for the Southern District of California, located at 221 West Broadway, Courtroom 4B (4th Floor), San Diego, California 92101.

    At this hearing, the Court considered whether the Settlement is fair, reasonable, and adequate. The Court also considered any request by Class Counsel for attorneys’ fees and expenses and for Service Awards for Plaintiffs. There were no objections to the Settlement. After the hearing, the Court decided to approve the Settlement.

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  22. What happens if I did nothing at all?

    If you did nothing, you still received the benefits to which you were entitled. Unless you excluded yourself, you will not be able to start a lawsuit, continue with a lawsuit or be part of any other lawsuit against Navy Federal relating to the issues in this case.

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  23. How do I get more information?

    This website summarizes the Settlement. For a complete, definitive statement of the Settlement terms, please review the Settlement Agreement. You may also write with questions to Navy Federal Overdraft Settlement Administrator, P.O. Box 3230, Portland, OR 97208-3230, or call the toll-free recorded information line at 1-877-393-1060.

    Do not contact Navy Federal or the Court for information.

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