US consumer watchdog scraps $95 million 'illegal fees' settlement with Navy Federal Credit Union
Source: Reuters
July 1, 2025 6:38 PM EDT Updated 10 hours ago
WASHINGTON, July 1 (Reuters) - The top U.S. watchdog agency for consumer finance this week canceled a $95 million settlement reached last year with Navy Federal Credit Union, a lender officials in the prior administration had accused of illegally charging surprise overdraft fees, according to an order published on Tuesday.
In a separate order also published on Tuesday, the CFPB likewise canceled a November action against the nonbank mortgage company Fay Servicing over alleged violations of mortgage servicing laws.
The decisions were the latest moves by the U.S. Consumer Financial Protection Bureau to undo cases already concluded by the agency, which President Donald Trump has sought to shrink drastically if not eliminate outright. The CFPB last month exited its corporate monitorship of Bank of America (BAC.N) from a 2023 settlement and in May canceled a settlement with Toyota from the same year over allegations of pushing car buyers into unwanted product bundles.
Representatives for both companies welcomed the news, saying they were committed to properly serving their customers. "Navy Federal complied with all applicable laws and regulations at the time and continues to do so. We firmly believe the CFPB’s decision to terminate the order was appropriate," a spokesperson for the credit union said.
The CFPB did not immediately respond to requests for comment.
Read more: https://www.reuters.com/legal/government/us-consumer-watchdog-scraps-95-million-illegal-fees-settlement-with-navy-federal-2025-07-01/