Vexing, cookie-cutter lawsuits are not only aimed at ATM disclosures according to the Credit Union National Association (CUNA). As you may have seen reported in the trade press, a wave of class action lawsuits is being aimed at banks and credit unions with overdraft programs that process some debit transactions largest to smallest rather than chronologically or by other methods. Dozens of suits have been filed, including against some credit unions, primarily, it seems, in California.
For the most part, the suits are worded identically, contending the institutions process transactions in a manner designed to yield unnecessary or excessive overdraft fees. CUNA is in the process of talking to constituencies within the credit union movement to determine how to be most helpful in addressing these litigation issues. CUNA will coordinate with the Missouri Credit Union Association (MCUA) and other leagues to create a national effort. Plans will be finalized in the very near future.