Lizeth GeorgeLaw 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:
- Common allegations and risk mitigation strategies
- Incorporating arbitration and class action waiver provisions in account agreements
- Placing membership agreements and other disclosures on credit union websites
- 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).
