Navy Federal Credit Union Fined $95M for Illegal Overdraft Fees

The Consumer Financial Protection Bureau (CFPB) has ordered Navy Federal Credit Union to pay over $95 million for charging illegal surprise overdraft fees from 2017 to 2022. The credit union must refund more than $80 million to affected consumers and pay a $15 million civil penalty. Navy Federal charged fees on transactions that appeared to have sufficient funds and on delayed peer-to-peer payments, violating the Consumer Financial Protection Act. This enforcement is part of the CFPB's broader effort to eliminate illegal junk fees in the financial sector.