FOR IMMEDIATE RELEASE
CONTACT: Lauren Williams – CUNA Communications; (202) 626-7642; firstname.lastname@example.org
Washington, DC (February 23, 2018) – Credit Union National Association, the Georgia Credit Union League and NAFCU filed an amicus brief with the U.S. Court of Appeals for the 11th Circuit defending a credit union hit with a lawsuit over overdraft services.
Tims v. LGU Community CU is one of 30 class action lawsuits against credit unions and community banks challenging their method of assessing overdraft fees based on the "available balance" rather than the "ledger balance" in member accounts.
“Our brief identifies crucial regulatory history as well as a critical due process argument,” said Leah Dempsey, Senior Director of Advocacy & Counsel. “CUNA's assistance is particularly warranted in light of the fact that this is the first federal appellate court to consider the issues presented. And, many credit unions are facing ‘gotcha’ litigation on this issue based on highly technical alleged violations.”
With over half of all credit union members choosing to use overdraft services, CUNA has strong interest in this litigation to seek a resolution that ensures members can continue to have an option that they continue to indicate they want.
Several small credit unions have been forced to enter into costly settlements, and CUNA urges that these cases be decided as a matter of law at the motion to dismiss and protect the rights of financial institutions--including its not-for profit, membership-based credit unions, and the members of the credit unions, who are ultimately funding the settlements.
Credit Union National Association (CUNA) is the only national association that advocates on behalf of all of America’s credit unions, which are owned by 110 million consumer members. CUNA, along with its network of affiliated state credit union leagues, delivers unwavering advocacy, continuous professional growth and operational confidence to protect the best interests of all credit unions. For more information about CUNA, visit cuna.org.