Important Update: Settlement benefits have been issued to eligible Settlement Class Members. Former Account Holder Settlement Class Members received their settlement benefit by check. Current Account Holder Settlement Class Members received their settlement benefit as an account credit.
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What is this lawsuit about?
A Settlement has been reached in a class action lawsuit claiming that Navy Federal Credit Union (“Navy Federal”) breached its contract with member Account Holders by improperly assessing and collecting Representment NSF Fees on certain transactions. The lawsuit claims that Navy Federal breached its contract with member checking Account Holders by assessing and collecting Representment NSF Fees (as defined in the Settlement Agreement and explained in FAQ 3) on certain transactions.
Navy Federal maintains it did nothing wrong and that its imposition of Representment NSF Fees did not breach its contract with member Account Holders. The U.S. District Court for the Eastern District of Virginia dismissed the lawsuit with prejudice and the Plaintiff appealed that ruling. Navy Federal has agreed to settle the lawsuit to avoid the cost, distraction, and uncertainty of litigation.
What does the Settlement provide?
A Settlement Fund of $16.0 million has been established to pay Settlement Class Member Payments, any attorneys’ fees, litigation expenses, a Service Award ordered by the Court, or cy pres payment required by the Settlement. All Settlement Administration Costs shall be paid separately by Navy Federal. Current and former Navy Federal members who had a Navy Federal Account may be eligible for a Settlement Account Payment from the Settlement Fund.
How do I know if I am a part of the Settlement?
You are a member of the Settlement Class if you have or had a Navy Federal Account and were charged Representment NSF Fees between January 28, 2014, through October 27, 2020.
If this did not happen to you, you are not a member of the Settlement Class. You may contact the Settlement Administrator if you have any questions as to whether you are in the Settlement Class.