Letter comes after Trump’s CFPB refused to explain why it cancelled an order requiring Navy Federal to pay back servicemembers and military families
ASHINGTON – Today, Senators Ruben Gallego (D-AZ) and Elizabeth Warren (D-MA) and Representatives Maxine Waters (CA-43) and Bill Foster (IL-11) are demanding answers from Navy Federal Credit Union (NFCU) about its overdraft fee practices after the Consumer Financial Protection Bureau (CFPB) cancelled its 2024 order requiring Navy Federal to pay over $95 million for its illegal use of surprise overdraft fees.
“As the CFPB explained in its order, Navy Federal—in violation of the Consumer Financial Protection Act—charged its customers roughly $80 million in surprise overdraft fees between 2017 and 2022,” the members wrote in a letter to Navy Federal President and CEO Dietrich Kuhlmann. “These illegal ‘junk fees’ cost active duty servicemembers, their families, and veterans tens of millions of dollars.”
Navy Federal is the largest credit union in the United States, serving roughly 14 million servicemembers, military families, Department of Defense staff, and veterans—including thousands of Arizona families through its 10 branches across the state.
“The CFPB’s 2024 order took a critical first step in both undoing the harm caused by Navy Federal’s policies and preventing future offenses. In the consent order, Navy Federal agreed to refund over $80.6 million in improper overdraft fees to affected consumers and pay a $15 million civil penalty to the CFPB’s victim relief fund, representing the largest amount the CFPB secured from a credit union,” the members continued.
The lawmakers raised concerns that the termination of the CFPB order could allow Navy Federal to resume its previous predatory overdraft practices.
“By terminating its 2024 order, the Trump Administration has ostensibly enabled Navy Federal to return toward its previous overdraft practices,” the members continued. “This casts uncertainty on Navy Federal’s willingness to ensure the millions of veterans, servicemembers, and DoD staff who were directly harmed by these unlawful acts are treated fairly and made whole. Questions also remain about the extent to which Navy Federal will modify its overdraft charge practices for all its members or if the practices that led to the CFPB enforcement action will remain in place.”
The lawmakers asked for answers on:
- Actions Navy Federal will take to avoid charging consumers inappropriate or excessive overdraft fees;
- Actions Navy Federal took to restore account holders harmed by the violations identified in CFPB’s 2024 order;
- Whether it will voluntarily uphold the CFPB’s ban on certain illegal overdraft fees;
- Details on refunds already issued, including how much has been paid back, how many consumers received redress, and whether those repayments will continue.
The letter follows the CFPB’s failure to answer to Senator Gallego and his colleagues about why the order against Navy Federal Credit Union was cancelled.
Read the full letter HERE.
8/28/25