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Credit unions across the country were hit recently with class-action lawsuits over their overdraft disclosures, but at least two are suing the plaintiffs right back.

Since September, at least a dozen credit unions in nine states have been sued in federal court over their overdraft practices. Often, the dispute is over whether and how credit unions disclose the use of available balances when applying overdraft fees. However, two credit unions – the Bakersfield, Calif.-based Kern Schools Federal Credit Union and the Bethpage, N.Y.-based Bethpage Federal Credit Union – are fighting back by countersuing for breach of contract.

Should CUs be concerned about the overdraft lawsuits?
Yes, the noncompliant ones should. Yes, compliant CUs will be caught in the wake. No, these suits are baseless. Other Please Specify:

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Kern Schools said it wants $615.09 plus interest from Christina Moralez, who filed a class-action suit against the credit union on Sept. 23, 2015. Bethpage said it wants $889.70 plus interest from Sheila McDermott, who filed a class-action suit against the credit union on Oct. 14, 2015.

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Tina Orem


Credit Union Times

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