Members May Be Eligible for Cash Payments Under the EFTA Settlement
A new class action settlement has been announced involving Navy Federal Credit Union (NFCU) and allegations that the credit union mishandled consumer claims of unauthorized electronic fund transfers. The Navy Federal EFTA settlement, valued at $1.7 million, resolves accusations that NFCU violated federal consumer protection laws under the Electronic Fund Transfer Act (EFTA).
According to court filings, the lawsuit alleged that Navy Federal improperly denied members’ claims of unauthorized withdrawals or transfers from their accounts between October 1, 2021, and June 30, 2024. As part of the Navy Federal EFTA settlement, affected customers may now be entitled to financial compensation for those denied claims.
What the Navy Federal EFTA Settlement Covers
The Navy Federal EFTA settlement stems from a class action lawsuit filed against Navy Federal Credit Union, one of the largest credit unions in the United States, serving more than 13 million members. The case accused the financial institution of violating the Electronic Fund Transfer Act, a federal law designed to protect consumers from unauthorized or fraudulent electronic transactions.
Under EFTA, banks and credit unions are required to promptly investigate any customer report of unauthorized transactions and reimburse affected users if the claims are found valid. Plaintiffs argued that Navy Federal failed to properly follow this process, resulting in customers unfairly losing money when their disputes were denied.
While Navy Federal Credit Union denies any wrongdoing or liability, it agreed to the $1.7 million settlement to avoid the cost and uncertainty of continued litigation.
Who Is Eligible to Claim Settlement Payments?
Members eligible to participate in the Navy Federal EFTA settlement include individuals who:
- Filed a claim with Navy Federal Credit Union between October 2021 and June 2024,
- Reported unauthorized electronic fund transfers, and
- Had their claims denied by the credit union.
Those who meet these criteria are automatically included in the settlement class unless they choose to opt out. Class members who do not exclude themselves will receive compensation if their claim is verified and approved by the settlement administrator.
According to the settlement notice, eligible members will not need to provide proof of purchase or additional documentation if their prior denied claims are already recorded in Navy Federal’s internal systems.
How Much Will Class Members Receive?
The total Navy Federal EFTA settlement fund is $1.7 million, which will cover cash payments to class members, administrative costs, and attorneys’ fees. The exact payment amount each class member receives will depend on the number of valid claims submitted and the amount of disputed transactions.
Legal experts estimate that individual payments may range from $25 to several hundred dollars, depending on each case’s specific circumstances. Payments will be distributed electronically or by check once the court grants final approval of the settlement.
The final approval hearing for the Navy Federal EFTA settlement is scheduled for February 18, 2026. Class members who wish to object or opt out must do so before January 10, 2026. Claim submissions are expected to remain open through March 2026, with payouts likely to begin shortly thereafter.
What the Settlement Means for Consumers
The Navy Federal EFTA settlement highlights the importance of consumer protection laws governing electronic financial transactions. Under the Electronic Fund Transfer Act, institutions must take customer complaints seriously and investigate promptly to prevent loss from unauthorized activity.
Consumer advocates view this settlement as a victory for financial accountability, emphasizing that large financial institutions must ensure fair and transparent handling of fraud claims.
Attorney Michael Ross, who represented plaintiffs in the case, said, “This settlement ensures that affected Navy Federal members receive restitution and that stronger safeguards are enforced moving forward. It’s an important reminder of the rights consumers have under the EFTA.”
How to File a Claim
Class members can visit the official settlement website, where details about eligibility, claim forms, and key deadlines are available. Claimants are encouraged to submit online forms before the final deadline to ensure timely payment.
For those unsure of their eligibility, checking prior correspondence with Navy Federal Credit Union about denied fraud claims may help determine qualification for this settlement.
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