Washington, D.C. – U.S. Senators Catherine Cortez Masto (D-Nev.) and Ruben Gallego (D-Ariz.) and six of their colleagues sent a letter to the Trump administration condemning its decision to release Navy Federal Credit Union (NFCU) from its obligation to pay $95 million in penalties and restitution, effectively excusing them from accountability for charging millions in illegal surprise overdraft fees to their members who are primarily military families and veterans.
Since the Consumer Bureau opened in 2011, Nevadans have submitted 580 complaints against NFCU, including 433 in just the past three years.
“In 2024, the CFPB found that between 2017 and 2022, NFCU charged overdraft fees on ATM withdrawals and debit card purchases – even when accounts showed sufficient funds,” the senators wrote in a letter to Consumer Financial Protection Bureau (CFPB) Acting Director Russell Vought. “In response, the Bureau issued a consent order requiring NFCU to pay $95 million in penalties and restitution: $80.6 million directly to harmed consumers and $15 million to the CFPB’s victims relief fund.”
That order was rescinded on July 1, 2025.
“As former CFPB officials have noted, this decision raises serious concerns about whether the Bureau is still capable – or even willing – to fulfill its legal mandate,” the senators continue. “At a minimum, the public and Congress deserve answers.”
The letter is endorsed by the Consumer Federation of America. “The Trump-era CFPB cannot reverse this consent order and simultaneously claim that it is prioritizing the interests of servicemembers,” said Adam Rust, Director of Financial Services for the Consumer Federation of America. “This action has diverted millions of dollars owed to military families—an unacceptable breach of trust. Acting Director Vought owes the public a clear and immediate explanation.”
Read the full letter, including the questions posed by the senators to Acting Director Vought, here.
Senator Cortez Masto is a champion for our service members, veterans, and their families. She worked across the aisle to get legislation helping veterans exposed to Agent Orange and expanding benefits for women veterans signed into law. The Senator sent a letter to U.S. Department of Veterans Affairs Secretary Collins demanding he provide answers on the mass terminations of personnel across the VA, specifically those in Nevada, and how those terminations would impact services to Nevada veterans.
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