A new on-demand webinar addresses the risks credit unions face regarding overdraft and NSF fee litigation. Credit unions frequently receive letters threatening a lawsuit alleging members were improperly assessed overdraft and/or NSF fees, according to CUNA Mutual Group.
Allegations may include:
- improperly charged multiple NSF fees on the same transactions;
- improperly assessed overdraft fees on debit card transactions posting to member accounts when funds were previously set aside when preauthorization holds were placed;
- Reg E’s Model A9 opt-in form is ambiguous on how credit unions assess overdraft fees and therefore fails to comply with Reg E requirements; and
- overdraft fees were improperly assessed using the “available” balance rather than the “actual” or ledger balance and that the credit union failed to accurately describe this in agreements/disclosures
- common allegations & risk mitigation strategies;
- incorporating arbitration and class action waiver provisions in account agreements;
- placing membership agreements and other disclosures on credit union websites; and
- other related trending topics.