USAA $5M Late Fee Refund Class Action Settlement

Policyholders whom USAA General Indemnity Co., Garrison Property and Casualty Insurance Co., United Services Automobile Association or USAA Casualty Insurance Co. charged a late fee on a Maryland insurance policy before 2020, refunded those late fees under Maryland consent order MIA-2020-08-002 and did not pay interest or gains on that refund may be eligible to receive a share of a class action settlement.

USAA General Indemnity Co. and related companies agreed to pay $5,000,000 to settle a class action lawsuit alleging they failed to pay interest and/or monetary gains on refunded late fees to Maryland insurance policyholders.

Who qualifies for a USAA settlement payout?

Class members are current and former policyholders that meet the following criteria:

• One of the following companies charged them a late fee by on a Maryland insurance policy prior to 2020:
• USAA General Indemnity Co.
• Garrison Property and Casualty Insurance Co.
• United Services Automobile Association
• USAA Casualty Insurance Co.

• They received a refund for those late fee charges as a result of Maryland consent order MIA-2020-08-002.
• They did not receive accrued interest and/or gains on the late fee refund(s).

How much is the settlement payment?

Pro rata cash payment or statement credit: Eligible class members will receive a cash payment or statement credit. The settlement administrator will determine individual payment amounts by the number of late fees USAA charged, when consumers paid the feels and the total number of class members who do not opt out.

No claim form required

Class members do not need to submit a claim form to receive a settlement payment or statement credit.

Payout options

• Current policyholders will receive a statement credit applied to their USAA account.
• Former policyholders will receive a paper check mailed to their last known address.

$5 million USAA settlement fund

The $5,000,000 settlement fund will include:

• Attorneys’ fees: Up to $2,000,000
• Attorneys' expenses: To be presented to the court for approval at a later date
• Service awards to class representatives: $18,000 total
• Payments to eligible class members: Remaining settlement funds

USAA companies will pay all settlement administration costs separately from the settlement fund.

Important dates

• Deadline to opt out: March 30, 2026
• Final approval hearing: April 28, 2026

When is the USAA late fee refund settlement payout date?

The settlement administrator will issue payments and statement credits to eligible class members no later than 100 days after the court grants final approval of the settlement.

Why did this class action settlement happen?

This plaintiffs filed the class action lawsuit after the Maryland insurance commissioner found USAA and its related companies assessed certain late fees against Maryland policyholders. The USAA companies refunded the principal amount of the late fees but did not pay any interest or gains earned on those fees. The plaintiffs claimed class members were entitled to interest and/or gains in addition to the refunded late fees.

The USAA companies deny any wrongdoing but agreed to settle to avoid the uncertainty and cost of further litigation.

Sources

1. Official class action notice
2. Settlement website FAQ page
3. Settlement agreement