$1.72M Navy Federal Credit Union Settlement Ends Lawsuit Over Alleged Electronic Funds Transfer Act Violations

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Navy Federal Credit Union has agreed to pay a $1,720,000 settlement to resolve a class action lawsuit that alleged that the credit union violated the Electronic Funds Transfer Act by denying members’ claims of unauthorized transfers without sufficient explanation.

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The $1.72 million Navy Federal Credit Union class action settlement received preliminary approval from the court on September 12, 2025.

The Navy Federal Credit Union settlement covers all accountholders whose claims of unauthorized electronic funds transfers were denied by Navy Federal between October 10, 2022 and August 20, 2025. The class action settlement also covers all Navy Federal accountholders who requested documents the credit union relied on in making its denial decision and who did not receive said documents.

The court-approved website for the Navy Federal Credit Union settlement is available at StephensonEFTALitigation.com.

Settlement class members who submit a timely and valid claim form are eligible to a pro rata (equal share) portion of the net settlement fund. Eligible consumers can choose to receive their settlement payout via check or electronic payment, the settlement site says.

Per court documents, the amount of each pro rata settlement payment will be calculated by dividing the total number of valid claims by the amount of money in the net settlement fund.

Settlement documents state that Navy Federal will credit settlement payouts directly into the accounts of current accountholders.

To submit a claim form online, class members can head to this page of the settlement website and enter the class member ID found in their copy of the settlement notice. Alternatively, class members can download a PDF copy of the Navy Federal settlement claim form to print, complete and return by mail to the address listed on the first page of the form.

All Navy Federal Credit Union claim forms must be submitted online or postmarked by December 18, 2025.

Class members who wish to exclude themselves from the deal must submit a written request to the settlement administrator. All requests for exclusion should be in writing and must include the name of the case, the class member’s name and address, a statement that the class member wants to be excluded from the settlement class, and the class member’s signature.

Per the settlement website, the deadline for class members to exclude themselves from the class action lawsuit is December 3, 2025.

The final approval hearing for the Navy Federal Credit Union class action settlement will be held on February 4, 2026. It is typically after a court has granted final approval to a class action settlement, and any appeals have been resolved, that benefits begin to be distributed to eligible class members.

The class action lawsuit against Navy Federal alleged that the credit union ran afoul of the federal Electronic Funds Transfer Act by improperly denying consumers’ claims of unauthorized fund transfers, failing to provide adequate written explanation about the denial, and failing to provide, upon request, the documents the institution relied on in denying the unauthorized transfer claims.

Did you know that some class action settlements require no proof to submit a claim? Check out the latest open class action settlements.