USAA 5 Million Settlement Over Unpaid Interest on Refunded Maryland Late Fees
Deadline
Deadline: March 30, 2026
Total Settlement Amount
Total amount allocated for all claims
Individual Payout Range
Estimated amount per eligible claim
Proof of Purchase
No documentation or claim form is required. Payments are issued automatically to eligible class members who do not exclude themselves; current policyholders receive a statement credit and former policyholders receive a mailed check.
Settlement Summary
USAA, a major insurer and financial-services provider for military members and their families, agreed to a $5 million settlement to resolve a Maryland class action over how it handled refunds of insurance-policy late fees. The dispute traces back to a 2020 consent order with the Maryland Insurance Administration (MIA-2020-08-002) that required USAA entities to refund certain late fees charged on Maryland insurance policies before 2020. While USAA refunded the fee amounts themselves, the plaintiffs allege it did not also return the interest or investment “gains” that accrued while the money was held, prompting claims that policyholders were left short even after getting the principal back. The lawsuit—*Black, et al. v. USAA General Indemnity Co., et al.*, No. 8:21-cv-01581-LKG (D. Md.)—was filed to recover those allegedly missing amounts and to enforce the idea that refunds ordered by regulators should make consumers whole, not just partially whole. Without admitting wrongdoing, USAA agreed to fund cash/credit payments that vary based on how many late fees a person paid and how long ago, with current policyholders receiving statement credits and former policyholders receiving checks; notably, no claim form is required for eligible class members who don’t opt out by March 30, 2026, and final approval is set for April 28, 2026. More broadly, the case reflects a recurring theme in regulated financial and insurance markets: when fees are later deemed improper or must be returned, fights often arise over whether consumers are also owed “time value of money” compensation—interest, disgorgement of gains, or similar add-ons—especially where state insurance regulators and consumer-protection principles emphasize restitution. Similar disputes have appeared in banking and insurance contexts involving refunded premiums, overcharges, or unlawful fees, and they underscore how consent orders and state oversight can trigger follow-on class actions focused not on whether a refund occurred, but on whether the refund complied with legal and equitable expectations for full remediation under applicable state regulatory frameworks
Entities Involved
Eligibility Requirements
- You were charged one or more late fees on a Maryland insurance policy before 2020
- The late fee(s) were charged by USAA General Indemnity Co., Garrison Property and Casualty Insurance Co., United Services Automobile Association, or USAA Casualty Insurance Co.
- You received a refund of the late fee principal pursuant to Maryland Consent Order MIA-2020-08-002
- You did not receive accrued interest and/or gains on the late fee refund(s)
- You do not opt out (exclude yourself) by March 30, 2026
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If you are unsure about your eligibility for this settlement, please visit the official settlement administrator’s website using the link provided above. Review the eligibility criteria carefully before submitting a claim.
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