Monday, April 22, 2019

Navy FCU Pays $24.5 Million to Settle Improper OD Fee Lawsuit

Navy Federal Credit Union (Vienna, VA) paid $24.5 million to settle overdraft (OD) fee class action lawsuit.

Navy FCU agreed to pay up to $500,000 towards Settlement Administration Cost.

According to the complaint, Navy FCU members were charged overdraft fees under the credit union’s Optional Overdraft Protection Service between July 22, 2012 and Nov. 20, 2017.

The plaintiffs alleged Navy FCU improperly assessed and collected OD fees. Navy FCU also breached its contractual agreement.

It was estimated that if the class action lawsuit went to trial, recoverable damages would have been almost $60 million. The Settlement would provide plaintiffs with a recovery of between 30 and 40 percent of potential damages.

The final approval hearing is set for May 20, 2019.

Click here for documents.

No comments:

Post a Comment


The content is provided for educational purposes only, with the understanding that neither the authors, contributors, nor the publishers of this site are engaged in rendering legal, accounting or other expert or professional services. If legal or other expert assistance is required, the services of a competent professional should be sought.

Comments appearing in response to articles appearing on this site do not necessarily reflect the views of the ABA. ABA makes no representations regarding the truth or accuracy of commentary or opinions that may be posted in response to the articles that appear on this website.

The inclusion herein of any link to a website, either in the text of an article or in a comment, does not denote any approval, sponsorship, or endorsement by the ABA, and ABA is not responsible for the content or opinions expressed on those linked websites or related commentary. This content is not licensed to third parties sites and is not affiliated with any third party site. Any reference to the author or this content on any third party site on the Internet is not authorized by the ABA.

It is the policy of the American Bankers Association to comply fully with all antitrust laws. Certain discussions should be considered off-limits, including those that contain competitively sensitive data such as price and cost information, or statements that could be construed as reflecting an attempt or desire to control or influence a particular market or markets. Future pricing or other prospective competitive information should never be shared.