Navy Federal Agrees to $1.7 Million Deal in Fraud Probes Suit

Navy Federal Credit Union agreed to pay $1.7 million to settle a proposed class action alleging it skirted federal rules for investigating potential fraud and notifying customers of the results.

The largest US credit union also agreed to revise written explanations sent to its members under the proposed settlement Tuesday, which still requires approval from Judge William Q. Hayes in the US District Court for the Southern District of California.

Vienna, Va.-based Navy Federal and counsel for the plaintiffs didn’t immediately respond to requests for comment Wednesday.

Jeffrey Stephenson sued Navy Federal in October 2023 alleging the credit union violated ...