$5M USAA Maryland late fee class action settlement

USAA has agreed to a $5 million class action settlement with certain Maryland insurance policyholders over claims it failed to pay interest (or other gains) on previously refunded late fees, and a settlement website is active with key dates and eligibility rules.

What the case is about

• The lawsuit alleges USAA and related companies charged unlawful late fees to Maryland policyholders, then refunded only the late-fee principal after a 2020 consent order from the Maryland Insurance Administration, without paying any interest or gains earned on those fees.

• USAA denies wrongdoing but agreed to pay $5,000,000 to resolve claims that the interest and/or gains on those refunded late fees should also have been paid to affected consumers.

Who is included

You are in the settlement class if all of the following apply:

• You were charged a late fee on a Maryland insurance policy before 2020 by one of these entities: USAA General Indemnity Company, Garrison Property and Casualty Insurance Company, United Services Automobile Association, or USAA Casualty Insurance Company.

• You received a refund of those late fees under Maryland Consent Order MIA‑2020‑08‑002 (the refunds that USAA issued after the regulator’s 2020 action).

• You did not receive any interest and/or monetary gains on those refunded late fees.

If you got a personalized notice, it generally means the administrator believes you are in the class, but the website explains the criteria if you are unsure.​

What you could receive

• The $5 million fund will cover cash payments to class members, attorneys’ fees and costs, service awards to the named plaintiffs, and administration expenses; specific per‑person payment estimates depend on how many valid claims/eligible class members there are and the final plan of allocation approved by the court.

• Class members are expected to receive automatic payments if they are identified in USAA’s records and do not exclude themselves, with the amount tied to the interest or gains associated with their refunded late fees.

Key dates and how to act

• The official settlement website is: https://www.usaalatefeelitigation.com, which lists deadlines to object, exclude yourself, or appear at the fairness hearing, and explains how payments will be made.​

• Current posted dates include a deadline in March 2026 to submit objections while still remaining in the settlement, an April 13, 2026 deadline to file a notice of intention to appear at the hearing, and a scheduled final approval hearing date (subject to change by the court).​

What to do if you think you qualify

• Go to the settlement site, enter any Claimant ID you may have received, and read the “Who Is Included?” and “Frequently Asked Questions” sections to confirm eligibility.

• If you want to receive money and stay in the case, follow the payment or claim instructions on the site (most class members will not need to do much if USAA already has valid address/payment information, but you can update your information there).

• If you prefer not to be bound by the settlement or its release of claims, follow the exclusion (“opt‑out”) instructions and deadlines on the website or in your notice.

If you tell me whether you had a Maryland USAA policy and remember being refunded late fees after 2020, I can walk you through how likely it is that you’re in the class and what steps to take on the settlement site.