CFPB Cancels Navy Federal’s $95 Million Overdraft-Fee Settlement

The CFPB said in November 2024 that the alleged fees were charged from 2017 to 2022 on some ATM withdrawals and debit card purchases. Then-director Rohit Chopra said the credit union had “illegally harvested tens of millions of dollars in junk fees,” including from active-duty servicemembers and veterans. Navy Federal serves servicemembers, veterans, Department of Defense employees and their families.

The cancellation drew criticism from consumer advocates who said it conflicts with the bureau’s stated focus on protecting servicemembers and veterans. Adam Rust, director of financial services at the Consumer Federation of America, wrote on X that giving Navy Federal a “free pass” over alleged overdraft fees did not square with claims that the bureau cares about servicemembers. He asked how many millions the CFPB had “just take[n] from servicemembers.”

Allison Preiss, a former senior adviser to the CFPB director, also wrote on X that the Trump administration’s stated focus on protecting servicemembers and veterans was at odds with the order. She pointed to a May 2025 CFPB statement saying the bureau would not prioritize enforcement related to Buy Now, Pay Later loans. That statement said the decision was intended to focus resources on supporting taxpayers, servicemembers, veterans and small businesses.

The order is among the Trump administration’s cancellations of enforcement actions brought under the Biden-led CFPB. The administration has also sought major cuts to the bureau’s personnel. It is currently led by Office of Management and Budget Director Russell Vought.