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NAFCU and CUNA Wednesday filed an amicus brief in support of Navy Federal Credit Union against a class action lawsuit challenging the charging of fees for insufficient funds. Other credit unions have seen similar suits across the country.

"NAFCU and CUNA stand with our credit union members and the need for a dependable, efficient, and convenient electronic payment system," said NAFCU President and CEO Dan Berger and CUNA President and CEO Jim Nussle. "We support the lower court's decision that upheld longstanding legal precedent by siding with Navy Federal Credit Union against a meritless lawsuit. The credit union mission is valued by millions of American consumers and supported by lawmakers, and such attacks on the industry serve no one but entities looking to pad their own wallets."

The U.S. District Court for the Eastern District of Virginia earlier dismissed the lawsuit in Navy Federal's favor, noting that the credit union's membership agreement was unambiguous. The lawsuit is currently before the U.S. Court of Appeals for the Fourth Circuit.

NAFCU has long defended credit unions' use of responsible programs related to insufficient funds and is monitoring increased litigation risk related to overdraft programs, keeping credit unions informed while the industry and other financial institutions face class action lawsuits. The association has several compliance resources available online.