The CFPB has banned Navy Federal Credit Union from charging any further illegal surprise fees, ordered them to refund over $80 million to its customers, and pay a $15 million civil penalty to the CFPB’s victims relief fund.

Between 2017 and 2022, Navy Federal has been illegally collecting $20 from consumers for overdraft transactions through its Optional Overdraft Protection Service (OOPS). The credit union would charge surprise fees to users even when they had enough funds to cover the transaction, if the account had a negative balance once the purchase was posted. Navy Federal collected $44 million per year through OOPS.

Navy Federal would also charge overdraft fees when users received funds through Zelle, PayPal, Cash App, or other payment apps. While the system showed that the money was immediately available, it would not be actually received until after 10:00 am EST (later 8:00 pm EST) would not be posted until the next business day, and so customers were charged overdraft fees if they made purchases before then. Navy Federal made $4 million in fees through this method.

CFPB director Rohit Chopra commented: “Navy Federal illegally harvested tens of millions of dollars in junk fees, including from active duty servicemembers and veterans. The CFPB’s work to rid the market of illegal junk fees has saved American families billions of dollars.”