$5M USAA Maryland late fee class action settlement

USAA has agreed to a $5 million class action lawsuit settlement to resolve claims it failed to pay interest on late fees refunded to Maryland policyholders.

The USAA settlement benefits individuals who were charged a late fee by USAA on a Maryland insurance policy prior to 2020, received a refund for the late fee(s) and did not receive accrued interest and/or gains on the late fee refund(s).

USAA is a financial services company that provides banking, insurance and investment services to military members and their families. USAA offers auto, home, renters, life, health, travel and other types of insurance.

According to claims made in the class action lawsuit resolved by this settlement, USAA failed to pay interest on late fees refunded to Maryland policyholders. The company refunded the principal amounts of the late fees but did not include any interest or gains made on the fees, the plaintiffs contend.

The plaintiffs argue that they and other policyholders should have received interest on their late fee refunds in addition to the principal amount.

The USAA class action lawsuit notes that USAA entered a consent order with the Maryland Insurance Administration in 2020. The order required USAA to refund late fees to policyholders.

USAA has not admitted any wrongdoing but agreed to pay $5 million to resolve the allegations.

Under the terms of the USAA settlement, class members can receive a cash payment based on the number of late fees they were charged and how long ago they paid the fees.

Current USAA policyholders will receive their settlement payment as a statement credit, while former policyholders will receive their payment as a mailed check.

If any funds remain in the settlement after payments are distributed, the money will be donated to the Wounded Warrior Project and Face the Fight.

The deadline for exclusion and objection is March 30, 2026.

The final approval hearing for the USAA late fees class action lawsuit settlement is scheduled for April 28, 2026.

No claim form is required to benefit from the settlement. Class members who do not exclude themselves will automatically receive a settlement payment.

Who’s Eligible

The settlement benefits anyone who was charged a late fee by USAA General Indemnity Co., Garrison Property and Casualty Insurance Co., United Services Automobile Association or USAA Casualty Insurance Co. on a Maryland insurance policy prior to 2020, received a refund for those late fees pursuant to Maryland Consent Order MIA-2020-08-002 and did not receive accrued interest and/or gains on the late fee refunds.

Potential Award

Varies

Proof of Purchase

N/A

Claim Form Deadline

03/30/2026

Case Name

Black, et al. v. USAA General Indemnity Co., et al., Case No. 8:21-cv-01581-LKG, in the U.S. District Court for the District of Maryland

Final Hearing

04/28/2026

Settlement Website

USAALateFeeLitigation.com

Claims Administrator

Black v. USAA
c/o JND Legal Administration
P.O. Box 91109
Seattle, WA 98111
[email protected]
877-206-2306

Class Counsel

Andrea R. Gold
Gemma Seidita
TYCKO & ZAVAREEI LLP

Jonathan Kagan
KAGAN STERN MARINELLO & BEARD LLC

Keith T. Vernon
Andrew W. Knox
TIMONEY KNOX LLP

Defense Counsel

Adam T. Schramek
NORTON ROSE FULBRIGHT US LLP