Navy Federal Credit Union $1.7M Class Action Settlement

Individuals who had an account with Navy Federal Credit Union and submitted a claim for unauthorized or fraudulent transactions that the company denied between Oct. 10, 2022, and Aug. 20, 2025, may be eligible to claim a cash payment from a class action settlement.

Navy Federal Credit Union agreed to pay $1.7 million to resolve a class action lawsuit alleging violations of the Electronic Funds Transfer Act and its own account agreement. The lawsuit claimed Navy Federal improperly denied members’ claims for unauthorized electronic fund transfers, failed to provide adequate written explanations for those denials and did not provide requested supporting documents.

Who can file a claim?

Class members must meet the following criteria:

• They had an account with Navy Federal Credit Union.
• They submitted a claim for unauthorized electronic fund transfers that the credit union denied between Oct. 10, 2022, and Aug. 20, 2025.

There are two categories of class members:

• Written explanation settlement class: All account holders whose claims of unauthorized electronic fund transfers Navy Federal denied during the relevant period
• Document request settlement subclass: Members of the written explanation settlement class who also requested but did not receive the documents Navy Federal relied on when denying their claim

If class members received a notice about the settlement by mail or email, it means the parties believe they may be part of one of these classes. However, those who did not receive a notice may still be eligible if they meet the above criteria.

How much can class members get?

Pro rata payment: The total settlement fund is $1,700,000. Eligible class members who submit a valid and timely claim will receive an equal, or pro rata, share of the net settlement fund after deductions for court-approved attorneys’ fees, costs and expenses. The exact payment amount depends on the total number of valid claims.

How to claim a class action rebate

Class members can file a claim online or download, print and complete the PDF claim form and mail it to the settlement administrator. The claim deadline is Dec. 18, 2025.

Settlement administrator's mailing address: Stephenson, et al. v. Navy Federal Credit Union, c/o Kroll Settlement Administration, PO Box 5324 New York, NY 10150-5324

Is proof or documentation required to submit a claim?

To file an online claim, class members must provide the class member ID located on their settlement notice. Those who did not receive or cannot locate their notice should contact the settlement administrator.

Document request settlement subclass members should check the appropriate box on the claim form if they requested documents from Navy Federal and did not receive them.

Payout options

• The settlement administrator will mail paper checks to former account holders at the address they provide on their claim form.
• Navy Federal will apply credits to the current account holders' accounts.

$1.7 million settlement fund breakdown

The $1,700,000 settlement fund includes:

• Settlement administration costs: To be determined
• Attorneys’ fees: Up to $566,667
• Attorneys’ expenses: To be determined
• Service awards to class representatives: $5,000 each
• Payments to eligible class members: Remainder of the fund

Important dates

• Exclusion (opt-out) deadline: Dec. 3, 2025
• Deadline to file a claim: Dec. 18, 2025
• Final approval hearing: Feb. 4, 2026

When is the Stephenson v. Navy Federal Credit Union payout date?

The settlement administrator will distribute payments approximately 30 days after the court grants final approval of the settlement and resolves any appeals.

Why is there a class action settlement?

The class action lawsuit alleged Navy Federal Credit Union violated the Electronic Funds Transfer Act and its own account agreement by improperly denying members’ claims of unauthorized electronic fund transfers, failing to provide sufficient written explanations for denials and not providing requested supporting documents.

Navy Federal denies these allegations but agreed to settle to avoid the costs, delays and uncertainties of litigation. As part of the settlement, Navy Federal will also update its policies and procedures for handling such claims.

Sources

1. Class notice
2. Claim form
3. Settlement agreement
4. Settlement FAQ