Navy Federal Unauthorized Fraudulent Transactions $1.7M Class Action Settlement
By Steve Levine
Published: November 25, 2025
Settlement Amount: $1,700,000
Claim Form Deadline: December 18, 2025
Proof required: Yes
What is the Navy Federal Class Action About?
You may be part of a new 1.7 million dollar class action settlement reached with Navy Federal Credit Union over how it handled unauthorized electronic fund transfer claims on member accounts.The class action lawsuit, called Stephenson et al. v. Navy Federal Credit Union, Case No. 3:23-cv-01851, alleges that Navy Federal violated the Electronic Funds Transfer Act and its own account agreement by denying members' claims of unauthorized electronic fund transfers, failing to provide sufficient written explanations for denials, and failing to provide documents members requested and that were relied on in denying those claims.
Navy Federal denies all wrongdoing and does not admit liability but agreed to this settlement to avoid the cost, burden, and uncertainty of continued litigation. The Court has not decided who is right. Settlement Class Members who submit valid claims will receive equal pro rata payments from the Settlement Fund, and Navy Federal has also agreed to make changes to its policies and procedures for handling unauthorized electronic fund transfer claims going forward.
Who Is Included in the NFCU Settlement?
You may be part of the class action settlement if you fall into one of these groups:A part of the settlement includes all Navy Federal accountholders whose claims of unauthorized electronic fund transfers were denied by Navy Federal between October 10, 2022 and August 20, 2025.
Another "sub-class" of the Navy Federal class action includes all members of the above members who also requested documents Navy Federal relied on when denying their unauthorized electronic fund transfer claim and did not receive those documents.
If you received a postcard or email notice about this case, Navy Federal's records indicate that you may be included in one of these groups.
How Much Can I Get Paid?
The settlement creates a $1.7 million Settlement Fund. After the class action court approves any attorneys' fees, costs, and expenses that are to be paid from the fund, the remainder will be divided equally among all Settlement Class Members who submit valid and timely claims. There is no fixed dollar amount per person, and the final payment will depend on how many people file valid claims and the final deductions approved by the Court.Every approved claimant will receive the same pro rata amount. Some Settlement Class Members may receive their payment as an account credit, while others may receive a check, depending on their account status and contact information.
How to File a Claim
To receive a payment or account credit, you must submit a claim form by the deadline.You can submit a claim in two ways:
Online: Go to the official settlement website and enter your Claimant ID from the notice you received. Complete the claim form online so that it is submitted by 11:59 p.m. Eastern Time on December 18, 2025.
By Mail: Complete and sign the paper claim form you received, or request one from the Settlement Administrator if needed. Mail it to the address listed on the form so that it is postmarked no later than December 18, 2025.
If your mailing address changes before payments are issued and you expect to receive a check, you should contact the Settlement Administrator to update your address so that your payment is not delayed or lost.
Do I Need Proof to File a Claim?
You do not need to upload bank statements or other supporting documents with your claim. Eligibility is based on Navy Federal's own records of whose unauthorized electronic fund transfer claims were denied during the class period, and whether they requested documents and did not receive them.You must still complete the claim form accurately, confirm your contact information, and submit it on time. Submitting a claim will also keep you in the Settlement Class and mean that you give up the right to sue separately over the same issues, even if your claim is later found invalid.
Key Deadlines
• Claim submission deadline: December 18, 2025
• Opt out (exclusion) deadline: December 3, 2025
• Objection deadline: December 3, 2025
• Final Approval Hearing: February 4, 2026
The Court may reschedule the hearing or change procedures, so you should check the official settlement website for updates if you plan to follow the case closely.
Case Overview
The plaintiffs in this case, Jeffrey Stephenson and Billy Smith II, sued Navy Federal Credit Union alleging that the credit union:• Improperly denied member claims for unauthorized electronic fund transfers
• Failed to provide sufficient written explanations for those denials
• Failed to provide documents relied on in denying the claims when members requested them
The lawsuit claims that this conduct violated the Electronic Funds Transfer Act and the Navy Federal account agreement. Navy Federal disputes these allegations and denies that it did anything wrong. The parties reached this settlement to avoid the risks and expense of continued litigation, including a trial and possible appeals.
In addition to monetary relief, Navy Federal has agreed to make prospective changes to its policies and procedures for handling unauthorized electronic fund transfer claims, including updates to written communications about denials and improvements to how it responds to member document requests related to those determinations.
How This Settlement Relates to the Earlier $5.5M Navy Federal Fee Settlement
This is not the first time Navy Federal has faced a class action over fees and account handling. In 2024, Navy Federal agreed to a $5.5 million settlement involving "International Service Assessment" fees. That earlier case focused on customers who were charged ISA fees for debit card purchases while they were physically in the United States, even though the fee was meant for international transactions.You can read more about that separate fee settlement here:
Navy Federal International Service Assessment Fee Settlement
The current $1.7M unauthorized transaction denial settlement is different. It focuses on how Navy Federal handled unauthorized electronic fund transfer claims and the explanations and documents provided to members. Someone who was included in the earlier ISA fee settlement may still qualify for this new settlement if they had a denied unauthorized electronic fund transfer claim during the class period.
How Do I Find Class Action Settlements?
Find all the latest class actions you can qualify for by getting notified of new lawsuits as soon as they are open to claims:What Are My Options?
• Submit a claim form to receive a payment or account credit if you are eligible.
• Do nothing and remain in the Settlement Class, but receive no payment and give up the right to sue Navy Federal separately over the released claims.
• Exclude yourself (opt out) by December 3, 2025, which removes you from the Settlement and preserves your right to sue Navy Federal individually about these issues. You will not receive any money from this Settlement if you opt out.
• Object to the Settlement by December 3, 2025 if you stay in the Settlement Class but want to tell the Court you disagree with some part of the Settlement, such as the requested attorneys' fees or the service awards to the class representatives.
How to Opt Out
To exclude yourself from the Settlement, you must send a written request for exclusion that is postmarked by December 3, 2025. Your request should be mailed to the class action settlement administrators directly.Your exclusion request must include:
• The case name, Stephenson v. Navy Federal Credit Union
• Your name and mailing address
• A statement that you wish to be excluded from the Settlement, such as "I request exclusion from the Settlement"
• Your signature
If an account has more than one account holder and one person opts out, all account holders on that account will be treated as having opted out for that account and will not receive a payment from this Settlement.
How to Object
If you do not exclude yourself, you may object to the Settlement if you think it is unfair or if you disagree with the requested attorneys' fees or service awards. To object, you must send a written objection that is postmarked by December 3, 2025 to the same Settlement Administrator.Your objection should include:
• The case name
• Your name, address, telephone number, and email (if any)
• Information showing that you are a Settlement Class Member
• A written statement of the reasons for your objection, including any legal support
• The name and contact information of any lawyer who represents you in connection with the objection
• A statement saying whether you or your lawyer intend to appear at the Final Approval Hearing
• Your signature
You do not have to attend the hearing for your objection to be considered. If you exclude yourself from the Settlement, you cannot also object.
Claim Form Website: StephensonEFTLitigation.com
Submit Claim
Official Settlement Notice
Sources
• Official Settlement Website: www.stephensoneftalitigation.com• U.S. District Court, S.D. Cal., Stephenson et al. v. Navy Federal Credit Union, Case No. 3:23-cv-01851
Filing Class Action Settlement Claims
Please submit only truthful information when filing your claim. Claims are made under penalty of perjury, and false information can lead to rejection of your claim and possible penalties. If you are not sure whether you qualify, review the official notice or contact the Settlement Administrator for guidance. OpenClassActions.com is a consumer news site and is not a class action administrator or a law firm.
For more class actions keep scrolling below.
RoundUp Cancer Lawsuits: How to Qualify
Status: Open to Claims
Submit Claim
$5.5M Mid America Pet Food Settlementt
Deadline: February 5, 2026
Submit Claim
$30M YouTube Privacy Settlement
Deadline: January 21, 2026
Submit Claim
$4M Frozen Waffles Class Action Settlement
Deadline: Dec 16, 2025
File Claim
$1.9M PetSafe e-Collar Settlement
Deadline: Dec 2, 2025
Payout: $30 - $420
| Class Action Summary | |
| Status | Proposed Settlement |
|---|---|
| Claim Form Deadline | December 18, 2025 |
| Settlement Amount | $1,700,000 |
| Category | Banking and EFTA |
| Estimated Payout per Person | Pro rata share of net $1.7M fund. Exact amount depends on number of valid claims and Court approved deductions |
| Case Number | 3:23-cv-01851 |
| Case Title | Stephenson et al. v. Navy Federal Credit Union |
| Court | U.S. District Court, Southern District of California |
| Final Approval Hearing | February 4, 2026 at 10:30 a.m. PT |
| Claim Website | StephensonEFTLitigation.com |