VIENNA, Va.–Navy Federal Credit Union 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.
According to TopClassActions.com, 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.,” the report states. “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.”
Payment to be Made
Navy Federal Credit Union will pay $5.5 million into a settlement fund, and eligible class members can receive financial compensation if the settlement is approved and becomes final, TopClassActions.com said.
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.
The announcement of the settlement comes at the same time Navy FCU is under scrutiny for alleged bias in its mortgage lending practices.
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