Navy Federal Credit Union ISA Fees Settlement: $5.5M

All current and past Navy Federal Accountholders who were assessed at least one ISA Fee during the Class Period (from August 9, 2016, to March 24, 2023) for purchases made while they were physically located in the United States.

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Plaintiffs Siobhan Morrow, Tracee Le Flore, and Maria Hart filed a class action lawsuit against Navy Federal Credit Union in 2021. They were charged a 1% International Service Assessment (ISA) fee for online debit purchases made from overseas merchants, despite being in the U.S. at the time of the transactions.

The lawsuit alleged that Navy Federal's assessment of the ISA fee was deceptive, unfair, and breached contractual promises, as account documents indicated the fee would only be applied when the card was used abroad. Morrow, Le Flore, and Hart argued that since they made the purchases from their U.S. homes, the fee should not have been charged.

Navy Federal, while contesting the allegations and denying any wrongdoing, chose to settle the case to avoid further litigation expenses and disruptions. The $5.5 million settlement will reimburse approximately four million Navy Federal members who were charged an ISA fee for online overseas purchases made while they were in the U.S. from August 9, 2016, to March 24, 2023. Navy Federal serves over 13 million members.

Under the proposed settlement, eligible members will receive $4 for each valid claim submitted. Notices about the settlement will be sent to members via email or direct mail. If the net settlement fund does not have sufficient funds, payments will be reduced proportionally based on the total number of valid claims.