Credit Unions Increasingly Target of Overdraft Litigation
Plaintiff attorneys are aggressively seeking credit union members through social media to initiate lawsuits against credit unions in connection with overdraft and NSF fees.
Ads, like this one you see here, are popping up at an increased rate.
According to CUNA Mutual Group, the common allegations against credit unions include:
• Assessing overdraft fees based on “available” balance versus “actual” (ledger) balance.
• Assessing overdraft fees on debit card transactions
• Assessing multiple NSF fees on the same transactions
Credit unions should continue to monitor this litigation topic and, if needed, review and make changes to agreements, disclosures and marketing material to mitigate this litigation risk.
CUNA Mutual Group offers an overview on overdraft/NSF litigation risk. A password is required to access some of the information.
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