Mitigating Overdraft/NSF Fee Litigation Risk

Law firms continue to send letters threatening to file a lawsuit against credit unions alleging members were improperly assessed overdraft and/or Non-Sufficient Funds (NSF) fees. These lawsuits, most of which are class actions, have plagued the financial services industry over the last several years resulting in multimillion-dollar losses.

To help minimize these risks, CUNA Mutual Group’s Risk Management and LOANLINER Compliance teams have created an On-Demand recording called Overdraft/NSF Fee Litigation. The On-Demand recording is accessible to all credit unions within Related Resources on the Overdraft/NSF Fee Litigation page of the Emerging Risks Outlook web series.

The Overdraft/NSF Fee Litigation On-Demand highlights:

  1. Common allegations and risk mitigation strategies
  2. Incorporating arbitration and class action waiver provisions in account agreements
  3. Placing membership agreements and other disclosures on credit union websites
  4. Other related trending topics.

In addition, the Emerging Risks Outlook page provides credit unions with access to key discussion questions and relevant, straight-forward responses, along with links to other related RISK Alerts and resources (some require User ID and Password).

Written by
Lizeth George
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About Us

The League of Southeastern Credit Unions & Affiliates represents 302 credit unions in Alabama, Florida and Georgia, with a combined total of $175 billion in assets and more than 11.6 million members. LSCU & Affiliates provides legislative and regulatory advocacy; education and training; cooperative initiatives (including financial education outreach); public messaging; information services; and business solutions.

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To create an environment that enables credit unions to grow and succeed.

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To be the trusted advocate and preferred source of information for credit unions.

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