VIENNA, Va. — Navy Federal Credit Union has agreed to settle a class-action lawsuit alleging it failed to prevent third parties from opening unauthorized personal loans in members’ names, according to TopClassActions.com.
The plaintiffs allege that people impersonating Navy Federal personnel persuaded members to transfer the loan proceeds to unknown third parties and that the credit union did not cancel the loans after members reported the fraud. Navy Federal has not admitted wrongdoing. The settlement is subject to final court approval.
Who Is Covered
According to TopClassActions.com, the settlement covers Navy Federal members whose loans meet all of the following conditions:
- The member was provided a personal loan between Jan. 1, 2023, and Jan. 31, 2025.
- The application was submitted from a device Navy Federal did not recognize, and the funds were deposited into the member’s account.
- The member disputed the loan as fraudulent, but Navy Federal denied the claim in whole or in part.
- Navy Federal has not fully recovered the loan funds.
Settlement Terms and Deadlines
Under the proposed settlement, Navy Federal will cancel covered loans, request deletion of credit reporting related to them and reimburse class members for payments made on those loans, including offset payments initiated by the credit union, TopClassActions.com reported.
Eligible members can also receive a $250 payment by submitting a valid claim form. Payments will be deposited into members’ Navy Federal accounts. Members who no longer have a deposit account with the credit union will receive reimbursement and the $250 payment by mail.
The deadline to object to or opt out of the settlement is Nov. 9, 2026. Claim forms for the additional payment are due Nov. 29, 2026, and a final approval hearing is scheduled for Dec. 9, 2026.
