Navy Federal Credit Union Overdraft Fees Class Action Settlement

Checking account holders have secured a $24.5 million settlement resolving a Navy Federal Credit Union overdraft fees class action lawsuit.

Class Members include Navy Federal Credit Union checking account holders who were charged overdraft fees under the credit union’s Optional Overdraft Protection Service between July 22, 2012 and Nov. 20, 2017.

The transaction that assessed the fee must have been authorized into a positive available balance.

Navy Federal Credit Union overdraft fees are unfair and unconscionable, according to a class action lawsuit lodged by Jenna Lloyd and Jamie Plemons. The plaintiffs alleged that the credit union assessed fees on debit card transactions deceptively.

According to the class action lawsuit, Navy Federal Credit Union would sequester checking account funds when members used their debit cards to cover the transaction, but would “hold” the amount until debiting for the purchase at a later time.

The credit union would then allegedly debit the amount for the transaction, but would, in essence, charge twice — leading consumers into a negative balance and assessing an overdraft fee.

The plaintiffs claimed that the Consumer Financial Protection Bureau has labeled this practice deceptive. Further, the Navy Federal Credit Union class action states that the company violated its own contractual agreements when it assessed overdraft fees in this manner.

According to the class action lawsuit, Navy Federal Credit Union overdraft fees are a way to bilk more money from consumers.

Under the terms of the settlement agreement, Navy Federal Credit Union has agreed to pay $24.5 million which will be used as account credits or payments to Class Members.

Class Members do not need to file a claim to obtain a payment or account credit; if the Navy Federal Credit Union overdraft fees class action settlement is approved, payment will be sent automatically to Class Members.

Class Members who wish to object to or exclude themselves from the Navy Federal Credit Union overdraft fees class action settlement must do so by April 20, 2019.

Who’s Eligible

Class Members include those who “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.”

Potential Award

The settlement agreement indicates that the Account Credits or payments to Class Members cannot be determined at this time. Payouts will depend on the number of overdraft fees charged to each Class Member.

Proof of Purchase

None required. Class Members will be automatically enrolled in this settlement.

FAQs

FREQUENTLY ASKED QUESTIONS »

NOTE: If you do not qualify for this settlement do NOT file a claim.

Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.

Claim Form Deadline

N/A – the deadline to object to or opt out is 04/20/2019

Case Name

Jenna Lloyd, et al. v. Navy Federal Credit Union, Case No. 17-cv-1280, in the U.S. District Court for the Southern District of California

Final Hearing

05/20/2019

UPDATE: The Navy Federal Credit Union Overdraft Fees Class Action Settlement was granted final approval on May 28, 2019. Let Top Class Actions know when you receive a check in the comments section below or on our Facebook page.

Settlement Website

www.NFOverdraftLitigation.com

Claims Administrator

Navy Federal Overdraft
Settlement Administrator – Epiq
P.O. Box 3230
Portland, OR 97208-3230
1-877-393-1060

Class Counsel

Jeff Ostrow
Jonathan Streisfeld
KOPELOWITZ OSTROW PA

Taras Kick
THE KICK LAW FIRM APC

Hassan Zavareei
Andrea Gold
TYCKO & ZAVAREEI LLP

Richard D. McCune
McCUNE WRIGHT AREVALO LLP

Defense Counsel

Neil Gilman
HUNTON ANDREWS KURTH LLP