CUNA News
  • LOG IN
  • Create Account
  • Sign Out
  • My Account
  • LOG IN
  • Create Account
  • Sign Out
  • My Account
  • Credit Union Magazine
    • Buyers' Guide
    • Digital Edition
    • Credit Union Hero
    • Credit Union Rock Star
    • Subscribe
    • Advertise
    • Contact
  • Advertise
  • Topics
    • Community Service
    • Compliance
    • Credit Union Hero
    • Credit Union Rock Star
    • Credit Union System
    • Directors
    • Human Resources
    • Leadership
    • Lending
    • Marketing
    • Operations
    • Policy & Issues
    • Sales & Service
    • Technology
  • Awards
    • Nominate Credit Union Hero
    • Nominate Credit Union Rock Star
  • Podcasts
  • Videos
  • Jobs
  • Contact

News

Home » CUNA files brief supporting credit union’s use of arbitration agreement
Policy & Issues

CUNA files brief supporting credit union’s use of arbitration agreement

October 17, 2022
Equifax

CUNA filed an amicus brief on behalf of Golden 1 Credit Union in a lawsuit, Burgardt v. The Golden 1 Credit Union. At issue is whether Golden 1 Credit Union can compel the plaintiff to arbitrate his claims. Golden 1 Credit Union’s membership agreement did not include an arbitration provision when the plaintiff joined, but Golden 1 later added it, and the plaintiff did not opt out. The plaintiff later filed a putative class action lawsuit in Sacramento, California related to non-sufficient funds fees.

The state superior court denied Golden 1’s motion to compel arbitration, and this decision was affirmed by the state appellate court. CUNA’s brief was filed in support of Golden 1’s petition that the United States Supreme Court review the Court of Appeal’s decision.

CUNA’s brief supports Golden 1 Credit Union’s position that it can add an arbitration provision through mutual assent, specifically by giving members notice of the proposed provision and the opportunity to opt out.

The brief notes that “operational uncertainty abounds in determining the enforceability of arbitration agreements added through mutual assent, including the notice-and-opportunity-to-opt-out process used by The Golden 1 Credit Union.”

It adds the standards fabricated by the courts are “confusing, often conflicting, and lack even-handed reasoning that comport with the Federal Arbitration Act’s equal-treatment principle.”

CUNA also notes that limiting credit unions’ use of arbitration agreements will harm access to the safe and affordable services credit unions provide, including services provided to those who lack access to traditional banking.

Credit Union Magazine: Fall 2023

Fall 2023

Credit Union Magazine’s Fall 2023 issue examines how artificial intelligence is shaping marketing, strategies to improve cyber hygiene and overall cybersecurity, the need to employ risk management to address inflation and its impacts, new approaches to board recruiting, and NCUA’s top supervisory priorities.
Digital Edition •  Subscribe

Trending

  • Registration open for 2024 Governmental Affairs Conference

  • Senators introduce bipartisan cannabis banking legislation

  • Setting the record straight on the FedNow® Service

Polls

Do you plan to use the FedNow instant payment service?

View Results
More

Champion for the Credit Union Movement

Credit Union National Association is the most influential financial services trade association and the only national association that advocates on behalf of all of America's credit unions. We work tirelessly to protect your best interests in Washington and all 50 states. We fuel your professional growth at every level and champion the credit union story at every turn.

More CUNA

  • Membership
  • Contact Us
  • Careers

Resources for

  • Credit Union Advocates
  • Leagues
  • Press
  • Providers

Our Affiliates

  • American Association of Credit Union Leagues (AACUL)
  • Credit Union Awareness
  • Credit Union House
  • CUNA Strategic Services
  • National Credit Union Foundation
GET CUNA UPDATES
© 2023 Credit Union National Association | ADA Compliance Notice & Legal
Email Us