Navy Federal Credit Union ISA fees $5.5M class action settlement

Navy Federal Credit Union (NFCU) agreed to a $5.5 million settlement in a class action lawsuit that claimed it breached its agreements with account holders by assessing fees on debit transactions. 

The settlement class is composed of all Navy Federal account holders charged at least one ISA fee for transactions conducted in the United States between Aug. 9, 2016, and March 24, 2023.

The plaintiffs in the case alleged that within the class period, the defendant committed a breach of contract and breach of the implied covenant of good faith and fair dealing by charging an international service assessment (ISA) fee for transactions made in the U.S. 

Navy Federal Credit Union has refuted any wrongdoing, asserting that the lawsuit lacks merit and that the company assessed the fees properly and per the terms of the debit card disclosure provided to new members when they open a debit card.

Navy Federal Credit Union is a not-for-profit credit union exclusively serving the military, veterans and their families. The company serves over 13 million customers in the U.S. 

NFCU will pay $5,500,000 into a settlement fund, and eligible class members can receive financial compensation if the class action lawsuit settlement is approved and becomes final. 

Class members must submit a claim form online or by mail to receive a payment. Class members can access the online form by entering a unique ID and PIN previously mailed out. The maximum possible base payment is $4.

If there are remaining funds in the net settlement fund after the total base payments are determined, the surplus will be paid to class members who submitted valid claims and incurred ISA fees exceeding $4 during the class period. This additional payment will be the amount equal to each of the class member’s respective actual ISA fees, less $4. If insufficient funds remain to pay those eligible an additional payment in the total amount of their respective actual ISA fees, the payments will be reduced pro rata.

The deadline for exclusion and objection is June 24, 2024.

A final approval hearing in the Navy Federal Credit Union class action lawsuit settlement will take place July 24, 2024.

The claim form submission deadline is August 8, 2024.

Who’s Eligible

All Navy Federal account holders who were charged at least one ISA fee for transactions conducted in the United States between Aug. 9, 2016, and March 24, 2023.

Potential Award

$4

Proof of Purchase

N/A

Claim Form

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

06/07/2024

Case Name

Morrow, et al. v. Navy Federal Credit Union, Case No. 1:21-cv-722, in the U.S. District Court for the Eastern District of Virginia, Alexandria Division

Final Hearing

05/23/24

Settlement Website

NFCUFeeLitigation.com

Claims Administrator

Morrow v. Navy Federal Settlement Administrator
PO Box 2329
Portland, OR 97208-2329
877-581-8129

Class Counsel

Sophia Gold
KALIELGOLD PLLC

Jeff Ostrow
KOPELOWITZ OSTROW P.A.

(Eddie) Jae K. Kim
LYNCH CARPENTER LLP

David Wilkerson
THE VAN WINKLE LAW FIRM

Defense Counsel

Michael Gottlieb
Meryl Governski
Nicholas Reddick
WILKIE FARR & GALLAGHER LLP