$5M USAA Maryland Late Fee Class Action Lawsuit Settlement, Who’s Eligible, How Much You Can Claim, and the Deadline

USAA and its subsidiaries have reached a $5 million class action settlement to resolve allegations that they unlawfully withheld interest on late fee refunds for Maryland policyholders. If you received a refund for a late fee from USAA following a 2020 regulatory order but did not receive interest on that money, you are likely eligible for a cash payment.

As of January 30, 2026, the settlement has received preliminary approval, and eligible Maryland residents will automatically receive compensation without having to file a formal claim form. This guide explains how much you might receive, the critical deadlines to be aware of, and the current status of the litigation.

Who Is Eligible for the USAA Maryland Late Fee Settlement?

The settlement class is narrowly defined to include specific Maryland policyholders. You are eligible if you meet the following criteria:

• You were charged a late fee by USAA (including USAA Casualty Insurance Company, USAA General Indemnity Company, or Garrison Property and Casualty) on a Maryland insurance policy.
• The fees were charged between August 27, 2011, and September 30, 2019.
• You previously received a refund for the principal amount of these late fees pursuant to a 2020 Consent Order between USAA and the Maryland Insurance Administration (MIA).
• You did not receive the accrued interest or monetary gains on those refunded late fees.

The court has already identified approximately 127,000 policyholders who qualify. If you fall into this group, you should have received a notice via mail or email regarding your inclusion.

How Much Compensation Can You Receive?

Under the terms of the $5 million agreement, the amount paid to each individual is not a flat fee. Instead, it is calculated based on:

1. The number of late fees you were originally charged.
2. How long USAA held your money (the time between the original charge and the 2020 refund).
3. The total number of class members who remain in the settlement.

While exact amounts vary, court documents indicate that every class member will receive at least $5.00. Larger payouts will go to those who had multiple late fees or whose funds were held for the longest duration.

What Is the Claim Deadline and Current Case Status?

As of January 30, 2026, the case—titled Black v. USAA (Case No. 8:21-cv-01568) in the U.S. District Court for the District of Maryland—is approaching its final resolution.

• Preliminary Approval: Granted on December 16, 2025.
• Final Approval Hearing: Scheduled for April 28, 2026.
• Exclusion/Objection Deadline: If you wish to opt out (to preserve your right to sue USAA individually) or object to the settlement terms, you must submit your request in writing by March 30, 2026.
• Claim Submission: Unlike many settlements, no claim form is required. If you are an eligible class member, USAA will issue your payment automatically following final court approval.

What You Must Know

Why Was USAA Sued?

The lawsuit followed a 2020 investigation by the Maryland Insurance Administration, which found that USAA had been charging late fees without the necessary prior approval from state regulators. While USAA refunded roughly $8.1 million in fees at that time, they did not pay interest on those funds. Plaintiffs argued that by holding millions of dollars in unlawful fees for years, USAA gained significant financial benefits that should have belonged to the policyholders.

How Will I Be Paid?

The method of payment depends on your current status with the company:

• Current Policyholders: You will likely receive your payment as a statement credit on your insurance account.
• Former Policyholders: You will receive a check mailed to the last known address on file with USAA.

If any funds remain unclaimed nine months after the initial distribution, the money will be donated to the Wounded Warrior Project and Face the Fight as “cy pres” awards (donations to charities that represent the interests of the class).

Common Mistakes to Avoid

The biggest mistake in this specific settlement is assuming you need to take action. Because the class list is generated from USAA’s own records, you do not need to “join” the suit. However, you should ensure your mailing address is updated with USAA if you are a former member, as checks sent to old addresses may be returned or voided.

What to Do Next

Step 1: Verify Your Eligibility

Check your records for any correspondence from USAALateFeeLitigation.com. If you lived in Maryland and paid a late fee to USAA between 2011 and 2019, you were likely part of the 2020 refund and are therefore a member of this interest settlement.

Step 2: Update Your Contact Information

If you have moved since you were last a USAA member, contact the settlement administrator at the official website [USAALateFeeLitigation.com] to update your address. This ensures your check reaches you promptly after the April 2026 hearing.

Step 3: Monitor the Final Approval

Keep an eye on the case status as April 28, 2026, approaches. Once the judge signs the Final Approval Order, payments are typically distributed within 30 to 60 days, provided there are no appeals.

FAQs

Who is eligible for the $5M USAA Maryland settlement?

Maryland policyholders who received a late fee refund from USAA under the 2020 consent order but did not receive interest on that refund are eligible.

Do I need to file a claim form to get money?

No. Payments are automatic for identified class members. You do not need to submit a form to receive your share of the $5 million fund.

What is the deadline for the USAA late fee settlement?

The deadline to exclude yourself or object to the settlement is March 30, 2026. The final approval hearing is April 28, 2026.

How much will I receive from the USAA settlement?

Every class member is guaranteed at least $5.00, but most will receive more based on the amount of late fees they paid and the interest accrued over time.

What happens if I miss the March 30 deadline?

If you do nothing, you stay in the class. You will receive your payment automatically but will lose your right to sue USAA separately for these specific interest claims.

How do I stay updated on the settlement status?

You can visit the official settlement website or check back with AllAboutLawyer.com for updates following the April final approval hearing.

Last Updated: January 30, 2026

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Please consult with an attorney regarding your specific legal rights.

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About the Author

Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
Her writing blends real legal insight with plain-English explanations, helping readers stay informed and legally aware.
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