The Consumer Financial Protection Bureau (CFPB) fined Navy Federal Credit Union $95 million for allegedly charging illegal overdraft fees.
The CFPB said that from 2017 to 2022, Navy Federal charged customers surprise overdraft fees on certain ATM withdrawals and debit card purchases made with sufficient funds and charging overdraft fees caused by delayed peer-to-peer payments with undisclosed processing times.
For the violations, CFPB is ordering Navy Federal to refund more than $80 million to consumers, stop charging illegal overdraft fees, and pay a $15 million civil penalty to the CFPB’s victims relief fund. CFPB officials said this is the largest amount the CFPB has ever obtained from a credit union for illegal activity.
“Navy Federal illegally harvested tens of millions of dollars in junk fees, including from active duty servicemembers and veterans,” CFPB Director Rohit Chopra said. “The CFPB’s work to rid the market of illegal junk fees has saved American families billions of dollars.”
Navy Federal Credit Union is the largest credit union in the United States, with headquarters in Vienna, Virginia. The credit union serves active-duty military members, veterans, Department of Defense civilian employees, and their families.
Navy Federal had more than $171 billion in assets and more than 13 million members as of December 2023. Navy Federal has 355 branches worldwide, including 175 branches on or near military installations and 26 on overseas military bases.