Navy Federal Credit Union has agreed to a $1.7 million class action settlement to resolve claims that it violated the Electronic Funds Transfer Act (EFTA) by denying claims for unauthorized electronic fund transfers. This guide breaks down everything you need to know and how to take action.
Why is there a lawsuit?
The lawsuit alleged Navy Federal improperly denied claims for unauthorized electronic fund transfers, failed to provide sufficient explanations, and did not provide documents requested by account holders.
Navy Federal denies wrongdoing but agreed to the settlement to avoid the costs and uncertainties of ongoing litigation.
Who qualifies?
You may be eligible if you meet the following criteria:
You are a Navy Federal account holder.
Your claim for an unauthorized electronic fund transfer was denied between October 10, 2022, and August 20, 2025.
You are part of the Written Explanation Settlement Class (denied claims) or the Document Request Settlement Subclass (requested documents Navy Federal relied on and did not receive them).
How much can people get?
Payments will be pro rata, meaning the total settlement fund will be split equally among all valid claims. Exact amounts are not available at this time.
Navy Federal also agreed to policy updates for handling claims of unauthorized transfers, including:
Improved written communications for denied claims.
Better procedures for responding to document requests.
What Are Your Options?
| Option | What It Means | Deadline |
|---|---|---|
| Submit a Claim | Stay in the settlement and receive your pro rata payment. | Dec. 18, 2025 |
| Opt Out | Exclude yourself, receive no payment, but keep the right to sue Navy Federal separately. | Dec. 3, 2025 |
| Object | Stay in the settlement but tell the Court why you don’t agree with the settlement terms or fees. You can still claim payment. | Dec. 3, 2025 |
| Do Nothing | Receive no payment and give up rights to sue separately. | N/A |
How to File a Claim
Visit the official settlement website.
Complete the online form or print and mail it to:
Stephenson, et al. v. Navy Federal Credit Union
c/o Kroll Settlement Administration
P.O. Box 5324
New York, NY 10150-5324
Ensure your claim is submitted online or postmarked by Dec. 18, 2025. This is your opportunity to get a share of the $1.7 million settlement for claims denied between Oct. 10, 2022 and Aug. 20, 2025. Protect your rights and submit your claim today.
