NEW YORK (AP) — Navy Federal Credit Union will no longer have to refund $80 million to servicemen and women for illegally charging them overdraft fees on their accounts, after the President Donald Trump-led Consumer Financial Protection Bureau moved to dismiss the case.

It's the latest example of how the Trump-led CFPB is undoing much of the work it did under President Biden, even in instances where the bad actors agreed to provide redress and compensation to victims.

The case dates from late 2024 and deals with an issue known as “authorized positive overdraft fees," which happen when a bank initially approves a debit card transaction but later charges the customer a overdraft fee when that earlier transaction settles, typically a couple of days later, and there's insufficient funds in the customer's bank account. Navy Federal was found to authorize these types of overdraft fees between 2017 and 2022, later stopping the practice and refunding some customers who were impacted.

Under its previous settlement, Navy Federal would have needed to pay a $15 million fine to the CFPB and refund $80 million in illegally paid overdraft fees. At the time, Navy Federal said it “fully cooperated with the CFPB’s investigation and we will continue to comply with all applicable laws and regulations, just as we always have and as we believe we did here.”

The CFPB gave little reason for withdrawing the consent order. Under Russell Vought, the president's budget director who is also the acting head of the bureau, the bureau has withdrawn roughly half a dozen consent orders and ended other settlements the bureau previously reached with financial services companies. The withdrawn order says that Navy Federal consented to have the order withdrawn.

In a statement, Navy Federal defended its use of overdraft and supported the CFPB's decision.

“Navy Federal’s commitment to prioritize and protect our members is core to who we are. Our overdraft program allows our members to make necessary, everyday purchases without going into long-term debt or turning to payday lenders. Navy Federal complied with all applicable laws and regulations at the time and continues to do so. We firmly believe the CFPB’s decision to terminate the order was appropriate."

Navy Federal is, by far, the largest credit union in the country with roughly 14 million members and $180 billion in assets. If Navy Federal were considered a traditional bank, it would be the 24th largest bank in the country by assets.

While Vought has dramatically narrowed the CFPB's mission and scope, the bureau has previously said that financial issues for servicemen and women remain a priority for the bureau. The CFPB did not immediately respond to a request for comment.