On July 1, the Trump administration Consumer Financial Protection Bureau (CFPB) deprived many Americans of financial compensation by dropping its settlement agreement with Navy Federal Credit Union, which was accused of illegal surprise overdraft fees.
In November 2024, the CFPB found that Navy Federal scammed consumers by charging “depositors whose accounts had sufficient funds at the time of a purchase but fell into the red by the time the charge later posted to their accounts.” The company also lied to consumers, saying that if they received funds from services such as PayPal and CashApp, the funds would be available immediately; in reality, depositors had to pay a fee for taking out the money on an immediate basis.
Despite Trump and the larger Republican Party’s claim to particularly care for members of the armed forces, Navy Federal primarily scammed “military service members, veterans, civilian employees of the military and their families.”
The acting Director of the CFPB is none other than Project 2025 leader Russell Vought. His July 1 order explicitly rescinded redress payments to the wronged customers.
