USAA Class Action Settlement: Automatic Payments, Opt-Out Deadline March 30, 2026

Maryland policyholders who paid USAA late fees and got only a partial refund are in line for an additional payment automatically, with no forms to fill out. The opt-out deadline is March 30, 2026.

Important Dates

The opt-out deadline for this settlement is March 30, 2026, which is 15 days away.

Because payments go out automatically, you don’t need to do anything by this date to receive your share. March 30 is strictly the cutoff for class members who want to exclude themselves from the deal or file a formal objection. Everyone else simply waits for distribution.

Background of the Lawsuit

The case traces back to a Maryland Insurance Commissioner examination that found USAA had been improperly charging late fees to policyholders.

USAA, which provides auto, home, and other insurance products primarily to military members and their families, entered into a Consent Order with the Maryland Insurance Administration requiring it to refund those fees for policies dating back to August 27, 2011.

USAA issued the refunds, but plaintiffs say the insurer left something out: the interest and monetary gains USAA had earned on those fees while holding them. That gap is what this class action is about.

USAA denies any wrongdoing and disputes that it owes additional money. The $5,000,000 settlement fund, agreed to in September 2025, resolves the dispute without any admission of liability.

Court records identify this as Black et al. V. USAA General Indemnity Company et al., Case No. 8:21-cv-01581-LKG, United States District Court for the District of Maryland.

For the full story and all related court filings, check out the USAA Class Action Settlement page.

Eligibility: Who Gets a Payment?

Class members in this settlement include individuals who meet the following conditions:

• Were charged a late fee by USAA General Indemnity Company, Garrison Property and Casualty Insurance Company, United Services Automobile Association, or USAA Casualty Insurance Company on a Maryland insurance policy prior to 2020;
• Received a refund for those late fee charges pursuant to Maryland Consent Order MIA-2020-08-002; and
• Did not receive accrued interest and/or gains on the late fee refund.

In plain terms: if you held a Maryland insurance policy with one of these USAA entities, paid a late fee before 2020, and received a principal-only refund under the Consent Order, you’re likely in the class.

Visit the USAA settlement page for the complete eligibility breakdown and to confirm whether you qualify as a class member.

How Much Could You Get?

The total settlement fund is $5,000,000. At least $3,000,000 of that is reserved for payments to class members, after attorneys’ fees of up to $2,000,000 and service awards totaling up to $18,000 for the named plaintiffs are deducted.

Not a flat per-person amount. Each payment is calculated based on the size of that policyholder’s original late fee charges relative to the total pool of eligible class members receiving distributions.

The official settlement page has the complete payout details and distribution methodology.

Key Details About This Settlement

Most class action settlements are subject to court approval (Federal Rule of Civil Procedure 23). Until a judge grants final approval, the terms described here are based on the proposed settlement agreement and could be modified.

Settlement payments typically arrive 6 to 12 months after the opt-out deadline closes. The settlement administrator must verify eligible class members, calculate individual payouts, and process distributions before checks go out.

What to Expect From This Settlement

No paperwork required. The settlement administrator will identify eligible policyholders using USAA’s own records and send payments directly, without any action needed on your end.

One step worth taking: confirm your current mailing address is up to date with the settlement administrator if you’ve moved. Insurance companies like USAA maintain contact records, but if your address changed after your policy was active, the administrator may be working with outdated information.

An undeliverable payment can cause delays. For full details on the payment process and timeline, visit the USAA settlement page.

Since this is an automatic distribution settlement, no action is needed on your part. For the full breakdown, including eligibility details, payout information, and the settlement timeline, visit the full USAA settlement details page.

What to Know About the USAA Settlement Payments