The $131 billion Navy Federal Credit Union will settle a non-sufficient funds fee lawsuit for $16 million that will reimburse an estimated 700,000 current and former members who were charged NSF fees.
U.S. District Court Judge Liam O’Grady in Alexandria, Va., granted a preliminary approval for the class action settlement on Oct. 27, and it is expected to receive the judge’s final approval in March.
The lawsuit was brought by Navy Federal member Ruby Lambert in January 2019 after writing a $96 check to pay an insurance bill. The Vienna, Va.-based Navy Federal rejected the payment because of insufficient funds in her account and charged Lambert a $29 NSF fee. When the insurance company resubmitted her check for payment a second time, Navy Federal charged Lambert a second $29 NSF fee.