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.
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