The conflict surrounding overdraft practices in the credit union industry appears to be growing, with at least 17 credit unions in 11 states and the District of Columbia now battling class action suits over how they handle accounts with insufficient funds.
At the end of 2015, at least 13 credit unions were embroiled in suits alleging, among other things, that they charged overdraft fees based on members' available balances rather than actual balances and had opt-in agreements that were inconsistent with other disclosure materials. Since January, at least four more credit unions have been targeted in suits with similar allegations.
A review of 17 cases brought before federal courts since September 2015 showed the same two firms – the Redlands, Calif.-based McCune Wright and Santa Monica, Calif.-based The Kick Law Firm – represent all the plaintiffs. Law firms in the plaintiffs' home states are also involved, according to court documents.
Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.
Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking credit union news and analysis, on-site and via our newsletters and custom alerts
- Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
