The Consumer Financial Protection Bureau (CFPB) has taken action against Navy Federal Credit Union, banning the institution from charging illegal surprise fees and mandating refunds exceeding $80 million to affected customers. In addition, Navy Federal must pay a $15 million civil penalty to the CFPB's victims relief fund.

From 2017 to 2022, Navy Federal improperly collected $20 fees from consumers under its Optional Overdraft Protection Service (OOPS). These fees were charged even when customers had sufficient funds to cover transactions, as long as their account balance was negative once the purchase was posted. OOPS generated $44 million annually for the credit union.

Navy Federal also applied overdraft fees when funds were received through services like Zelle, PayPal, and Cash App. Despite the system indicating that funds were available immediately, the actual deposit wouldn't post until later in the day (up to 8:00 pm EST) or the following business day. As a result, customers were charged overdraft fees if they made purchases before the funds were officially posted. This practice earned Navy Federal an additional $4 million in fees.

CFPB Director Rohit Chopra remarked, “Navy Federal illegally harvested tens of millions of dollars in junk fees, including from active-duty servicemembers and veterans. The CFPB’s efforts to eliminate illegal junk fees have saved American families billions of dollars.”