CFPB dismisses overdraft case vs. NFCU

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.

Nonprofit gets OK to buy 23andMe

Anne Wojcicki’s bid to buy 23andMe, the genetic testing company she co-founded nearly 20 years ago, has received the court green light.

That means Wojcicki’s nonprofit TTAM Research Institute will purchase “substantially all” of San Francisco-based 23andMe’s assets for $305 million. The transaction, which arrives more than three months after 23andMe filed for Chapter 11 bankruptcy, is set to officially close in the coming weeks.

The sale marks the end of a bidding war between TTAM and Regeneron Pharmaceuticals — a biotech company that had previously agreed to buy most of 23andMe’s assets for $256 million in May. .

Costco sued over alleged knockoffs

Lululemon has filed a lawsuit against Costco that accuses the wholesale club operator of selling lower-priced duplicates of some of its popular athleisure clothing.

In its lawsuit filed in the U.S. District Court for the Central District of California, Lululemon Athletica claims Costco has “unlawfully traded” on its reputation, goodwill and sweat equity by selling unauthorized and unlicensed apparel that uses knockoff, infringing versions of its patents.

Lululemon alleges that Costco is known to use manufacturers of popular branded products for its private label Kirkland brand, but that the company and the manufacturers don’t tell consumers of the connection between them for many of the Kirkland-branded products. Because of this, Lululemon claims this leads at least some shoppers to believe that Kirkland-branded products are made by the authentic supplier of the “original” products. Lululemon claims Costco doesn’t try to dispel the ambiguity.

Compiled from Associated Press reports.