USAA $5 Million Late Fees Class Action Settlement
By Steve Levine
Published: March 3, 2026
Status: Automatic Payment - No Claim Form Required
Opt-Out / Objection Deadline: March 30, 2026
Settlement Amount: $5,000,000
What is the USAA Late Fees Settlement?
If you had a Maryland insurance policy with USAA and were charged late fees that USAA later refunded without paying you the interest or gains it earned on that money, you may be entitled to an automatic payment from a $5 million class action settlement. No claim form is required. If you are a class member and do nothing, you will automatically receive a payment.The lawsuit alleged that after the Maryland Insurance Administration ordered USAA to refund certain late fees it had improperly charged to Maryland policyholders, USAA only refunded the principal amount of the fees but kept the interest and gains it earned on that money. The plaintiffs argued that class members were also owed those additional amounts. USAA denies that it did anything wrong or owes anyone money. The Court has not decided who is correct. The parties agreed to settle in September 2025 to avoid the risk and expense of further litigation.
What is USAA?
USAA (United Services Automobile Association) is a financial services company based in San Antonio, Texas that primarily serves current and former members of the U.S. military and their families. USAA offers insurance (auto, home, renters, life), banking, investment products, and retirement planning. The company was founded in 1922 and serves over 13 million members.The defendants in this lawsuit are four USAA entities: USAA General Indemnity Company, Garrison Property and Casualty Insurance Company, United Services Automobile Association, and USAA Casualty Insurance Company. All four are part of the USAA family of companies and issued insurance policies to Maryland residents.
This case specifically involves Maryland insurance policyholders who were charged late fees prior to 2020. Following a market conduct examination, the Maryland Insurance Commissioner found issues with how USAA assessed certain late fees. USAA entered into a Consent Order (MIA-2020-08-002) and refunded the principal amount of those fees to affected policyholders, but the lawsuit alleges USAA kept the interest and investment gains it earned while holding those funds.
What is the Total Settlement Amount?
USAA has agreed to create a $5,000,000 settlement fund. This money will be distributed to all settlement class members who do not opt out. The fund will also cover Court-approved attorney fees and costs. USAA is separately paying for the costs of administering the settlement, which means those costs do not reduce the amount available to class members.If money remains after all payments are processed, it will be donated to Wounded Warrior Project and Face the Fight.
Who Qualifies for the USAA Late Fees Settlement?
You are a settlement class member if all three of the following are true. You were charged a late fee by one of the USAA defendants on a Maryland insurance policy prior to 2020. You received a refund for those late fee charges under Maryland Consent Order MIA-2020-08-002. You did not receive accrued interest and/or gains on the late fee refund.This settlement only applies to Maryland insurance policyholders who meet these specific criteria. It does not apply to USAA members in other states or to other types of USAA accounts.
How Much Money Will I Get?
The exact amount depends on several factors: how many late fees you were charged, how long ago you paid the fees, and the total number of settlement class members who remain in the settlement (meaning those who do not opt out).Current USAA policyholders will receive payment in the form of a statement credit on their account. Former USAA policyholders will receive a mailed check.
Do I Need to File a Claim Form?
No. This is an automatic payment settlement. If you are a settlement class member and you do nothing, you will automatically receive a payment. There is no claim form to submit. Current policyholders will receive a statement credit and former policyholders will receive a check in the mail.What are the Important Dates?
Opt-Out Deadline: March 30, 2026
Objection Deadline: March 30, 2026
Final Approval Hearing: April 28, 2026 at 10:00 AM at 6500 Cherrywood Lane, Suite 400, Greenbelt, MD 20770
When Will Payments Be Sent?
Payments will be issued after the Court approves the settlement at the final approval hearing and all appeals are resolved. The hearing is scheduled for April 28, 2026. If there are no appeals, payments should follow within a reasonable time after that date. If there is an appeal, payment may be delayed.What Happens If I Do Nothing?
If you do nothing, you will automatically receive a payment. However, you will also be bound by the settlement and will give up your right to sue USAA over the same issues. If you want to keep the right to sue USAA separately, you must opt out by March 30, 2026.Can I Opt Out of the USAA Settlement?
Yes. The deadline to opt out is March 30, 2026. You must mail a signed written request that includes your name, address, email address (if any), telephone number, the last four digits of your USAA policy number, a statement identifying your membership in the settlement class, a statement that you wish to be excluded, and your personal signature. Mail it postmarked by March 30, 2026 to the settlement administrator. If you opt out, you will not receive any payment but you keep the right to sue USAA separately. You cannot opt out by phone, fax, or email.What Was the USAA Late Fees Lawsuit About?
Following a market conduct examination by the Maryland Insurance Commissioner, the USAA defendants entered into a Consent Order regarding how they assessed certain late fees to Maryland policyholders. Under the Consent Order, USAA refunded the principal amount of the late fees to affected policyholders. However, USAA did not include any interest or investment gains that it earned while holding those funds.The plaintiffs in this class action argued that USAA should have also paid the interest and gains it made on the late fee money. USAA denies that it did anything wrong and denies that it owes anyone additional money beyond what was already refunded. The Court has not decided who is correct.
Who Are the Lawyers in This Case?
Class counsel includes Andrea R. Gold and Gemma Seidita of Tycko & Zavareei LLP, Jonathan Kagan of Kagan Stern Marinello & Beard LLC, and Keith T. Vernon and Andrew W. Knox of Timoney Knox, LLP. They will request up to $2,000,000 in attorney fees plus reimbursement of out-of-pocket expenses from the settlement fund. The Court must approve the fees.Service awards are being requested for four class representatives: $7,500 for Walter Black III and $3,500 each for Keith Barr, Wayne Best, and David Fant Sr.
Case Information
Caption: Black et al. v. USAA General Indemnity Company et al., Case No. 8:21-cv-01581-LKG
Court: United States District Court for the District of Maryland
Class Counsel: Andrea R. Gold and Gemma Seidita, Tycko & Zavareei LLP; Jonathan Kagan, Kagan Stern Marinello & Beard LLC; Keith T. Vernon and Andrew W. Knox, Timoney Knox, LLP
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:Official Settlement Notice (PDF)
Settlement Website: USAALateFeeLitigation.com
View Settlement Details
Sources
• Official Settlement SiteFiling Class Action Settlement Claims
Please note that this settlement does not require a claim form. Payments are automatic for class members who do not opt out. If you are not sure whether you qualify, visit the settlement website or contact the settlement administrator. OpenClassActions.com is a consumer advocacy and class action news site, and is not a class action administrator or a law firm.
For more class actions keep scrolling below.
Childrens' Video Game Addiction
Deadline: Pending
Submit Claim
DraftKings & FanDuel Addiction Lawsuits
Status: Open
Submit Claim
Kids Playing Roblox - Alleged Abuse
Pre-Qualify Here
Submit Claim
$4.17M RevitaLash Conditioner Settlement
Deadline: April 20, 2026
Submit Claim
$87.5M Beef Prices Settlement
Deadline: June 30, 2026
Submit Claim
Dollar General Bait & Switch Settlement
Deadline: April 13, 2026
Submit Claim
Belkin Power Bank Settlement
Deadline: March 30, 2026
Submit Claim
Cosequin Dog Supplements Settlement
Deadline: July 21, 2026
Submit Claim
Depo Provera Investigation
Deadline: Pending
Pre-Qualify| USAA Late Fees Settlement Summary | |
| Status | Automatic Payment — No Claim Form Required |
|---|---|
| Opt-Out / Objection Deadline | March 30, 2026 |
| Final Approval Hearing | April 28, 2026 at 10:00 AM (Greenbelt, MD) |
| Settlement Amount | $5,000,000 |
| Estimated Payment | Varies (based on late fees charged and timing) |
| Claim Form Required | No — automatic payment |
| Payment Method | Statement credit (current) or mailed check (former policyholders) |
| Who Qualifies | Maryland USAA policyholders charged late fees prior to 2020 who received refunds without interest under Consent Order MIA-2020-08-002 |
| Cy Pres Recipients | Wounded Warrior Project and Face the Fight |
| Website | USAA Late Fee Litigation |
| Claims Administrator | JND Legal Administration |