CUNA Mutual Group Offers Recording on Overdraft / NSF Fee Litigation

Law firms continue to send demand letters threatening a lawsuit or file a lawsuit against credit unions alleging members were improperly assessed overdraft and/or NSF fees. In addition, regulatory scrutiny of overdraft and NSF fees continues to increase.

These lawsuits, most of which are class actions, have plagued the financial services industry over the last several years resulting in multimillion-dollar losses. While CUNA Mutual Group has shared risk insights and mitigation tips with credit unions numerous times on this litigation trend, credit unions continue to be targeted.

To help minimize these risks, CUNA Mutual Group’s Risk Management and LOANLINER Compliance teams have created an on-demand recording: 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 our Emerging Risks Outlook web series.

​The Overdraft / NSF Fee Litigation recording (approximately 42 minutes) highlights:

• 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
• 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). Visitors can also submit questions/feedback to our Risk Consultants directly from the web page.