Statement by Chairman Harper on CFPB’s settlement with Navy Federal Credit Union
ALEXANDRIA, VA (November 7, 2024) — National Credit Union Administration Chairman Todd M. Harper released the following statement today on the Consumer Financial Protection Bureau’s settlement with Navy Federal Credit Union to resolve unfair and deceptive authorize positive, settle negative (APSN) practices. Navy Federal Credit Union has more than $180 billion in assets and is headquartered in Vienna, Virginia.
“Navy Federal’s authorize positive, settle negative practices and the subsequent charging of overdraft fees were not only unfair and deceptive, but they also caused substantial harm to consumers. More overt, in many cases, consumers were charged an overdraft fee completely unaware of Navy Federal’s complex processes related to the posting of transactions and whether they will incur an overdraft fee.
“APSN practices and an overreliance on overdraft and non-sufficient fees are counter to the credit union system’s statutory mission of meeting the credit and savings needs of their members — especially those of modest means. Credit union member-owners have the right to know about any fees and practices that affect their hard-earned savings and credit unions owe it to their members to be transparent. The settlement with Navy Federal underscores the importance of ensuring fair and responsible treatment of consumers and protecting consumers from predatory business practices.”
The CFPB ordered Navy Federal Credit Union to pay more than $80 million to reimburse members and a $15 million penalty to the CFPB’s victims relief fund(Opens new window).
Related Link: Consumer Financial Protection Bureau Order
About National Credit Union Administration (NCUA)
The NCUA is the independent federal agency created by the U.S. Congress to regulate, charter and supervise federal credit unions. With the backing of the full faith and credit of the United States, the NCUA operates and manages the National Credit Union Share Insurance Fund, insuring the deposits of more than 135 million account holders in all federal credit unions and the overwhelming majority of state-chartered credit unions. The NCUA also protects consumers and educates the public on consumer protection and financial literacy issues.
