Consumer Financial Protection Bureau dismisses $95M overdraft case vs. Navy Federal Credit Union
It's the latest example of how the Trump-led CFPB is undoing much of the work it did under President Biden, even in instances where the bad actors agreed to provide redress and compensation to victims.
The case dates from late 2024 and deals with an issue known as 'authorized positive overdraft fees,' which happen when a bank initially approves a debit card transaction but later charges the customer a overdraft fee when that earlier transaction settles, typically a couple of days later, and there's insufficient funds in the customer's bank account. Navy Federal was found to authorize these types of overdraft fees between 2017 and 2022, later stopping the practice and refunding some customers who were impacted.
Under its previous settlement, Navy Federal would have needed to pay a $15 million fine to the CFPB and refund $80 million in illegally paid overdraft fees. At the time, Navy Federal said it 'fully cooperated with the CFPB's investigation and we will continue to comply with all applicable laws and regulations, just as we always have and as we believe we did here.'
The CFPB gave little reason for withdrawing the consent order. Under Russell Vought, the president's budget director who is also the acting head of the bureau, the bureau has withdrawn roughly half a dozen consent orders and ended other settlements the bureau previously reached with financial services companies. The withdrawn order says that Navy Federal consented to have the order withdrawn.
A spokesperson for Navy Federal did not immediately respond to comment on whether the credit union planned to keep refunding its customers, despite no longer having to do so.
Navy Federal is, by far, the largest credit union in the country with roughly 14 million members and $180 billion in assets. If Navy Federal were considered a traditional bank, it would be the 24th largest bank in the country by assets.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New York Times
26 minutes ago
- New York Times
Dodgers DEI efforts subject of federal civil rights complaint filed by conservative legal group
A conservative legal group co-founded by White House deputy chief of staff Stephen Miller has filed a federal civil rights complaint accusing the Los Angeles Dodgers of 'apparently engaging in unlawful discrimination under the guise of 'diversity, equity, and inclusion.'' The complaint was filed Monday with the U.S. Equal Employment Opportunity Commission by America First Legal, less than two weeks after the Dodgers said they denied federal immigration authorities access to Dodger Stadium parking lots. Advertisement The Dodgers declined to comment Wednesday about the complaint, which also named their ownership group, Guggenheim Partners. The EEOC did not immediately respond to a request for comment. Miller is seen as the architect of Trump's immigration policy, which has involved the detaining and deporting of tens of thousands of immigrants and attempting to end birthright citizenship. While the civil rights complaint focuses on diversity efforts, America First Legal mentioned the situation between the Dodgers and federal immigration officials in its news release about the complaint. Los Angeles is one of several cities affected by the Trump administration's militarized immigration raids and protests over immigration policy. The Dodgers have faced criticism from some fans who have called on the team to do more to support immigrants in the wake of the crackdown. On June 19, the Dodgers said federal authorities showed up at Dodger Stadium's Gate A and requested access, which was denied. The Department of Homeland Security said in a statement at the time that the vehicles were there 'unrelated to any operation or enforcement' and that the activity 'had nothing to do with the Dodgers.' The next day, the team committed $1 million toward assistance for families affected by the immigration raids in the city. The Dodgers are the latest organization AFL has taken on for their diversity efforts, joining a group that includes universities and companies like IBM and Johnson & Johnson. The legal group has pursued an agenda aligned with the Trump Administration when it comes to seeking to end diversity efforts; in January, President Donald Trump signed an executive order targeting diversity efforts in the federal government. Opponents say the Trump administration's actions target crucial programs such as medical research and care for women or LGBTQ people. Advertisement AFL singled out a page of the Dodgers' website that includes a mission 'to create a culture where diverse voices and experiences are valued.' The site outlines efforts to recruit women and people of color, partner with community groups to support racial and social justice and promote heritage events for staff and fans. The complaint also names the Dodgers' professional groups for employees, such as the Black Action Network and Women's Opportunity Network. 'The DEI mission statement indicates that the Dodgers are incorporating DEI into its workplace in quantifiable ways with identifiable goals to achieve 'success,' which appears to entail engaging in unlawful discriminatory hiring, training, and recruitment,' AFL stated in its complaint. Conservatives have targeted diversity and equity efforts, arguing that they amount to discrimination, while proponents of such programs say that DEI seeks to lessen discrimination by supporting historically disadvantaged groups. Jared Rivera, chief of staff of Pico California, one of the organizing groups that called on the Dodgers to do more for immigrants, said the complaint amounts to retaliation. 'Stephen Miller's group is dressing up vengeance as legal action,' Rivera said. 'Retaliating against the Dodgers for their compassion shows Miller is threatened when the team and its fans stand up for what is moral and right.' The Athletic's Fabian Ardaya contributed to this report.
Associated Press
26 minutes ago
- Associated Press
Judge blocks order barring asylum access at border, gives administration two weeks to appeal
WASHINGTON (AP) — A federal judge said Wednesday that an order by Donald Trump suspending asylum access at the southern border was unlawful, throwing into doubt one of the key pillars of the president's plan to crack down on migration at the southern border. But he put the ruling on hold for two weeks to give the government time to appeal. In an order Jan. 20, Trump declared that the situation at the southern border constitutes an invasion of America and that he was 'suspending the physical entry' of migrants and their ability to seek asylum until he decides it is over. U.S. District Judge Randolph Moss said his order blocking Trump's policy will take effect July 16, giving the Trump administration time to appeal. Moss wrote that neither the Constitution nor immigration law gives the president 'an extra-statutory, extra-regulatory regime for repatriating or removing individuals from the United States, without an opportunity to apply for asylum' or other humanitarian protections.
Bloomberg
26 minutes ago
- Bloomberg
BYD Shelves Plans to Build Major Mexico Car Plant Over Trump's Trade War
China's top electric vehicle maker, BYD Co., has shelved plans to build a major plant in Mexico over geopolitical tensions and uncertainty stemming from US President Donald Trump's trade policies. The company remains interested in expanding in the Americas but has no timeline to make a new investment, BYD Executive Vice President Stella Li said in a Tuesday interview in the Brazilian state of Bahia, where the company is opening its first factory outside Asia.
