NAFCU offers support to CU in overdraft lawsuit
NAFCU last week submitted a motion to file a brief in support of a credit union's motion to dismiss a complaint filed against it in federal court related to overdraft fees.
NAFCU was joined by CUNA and the Georgia Credit Union League in filing the motion to submit amicus curiae.
Being challenged in the lawsuit is the process in which credit unions and other financial institutions determine assessing overdraft fees based on the member's available account balance.
NAFCU has long defended credit unions' use of responsible overdraft programs – they are often coupled with free financial education and counseling services to ensure credit union members are informed of the benefits and uses of overdraft products.
The association has also argued against limiting or eliminating overdraft services, as the loss of such programs could lead credit union members to seek out more expensive alternatives.
The NAFCU Journal: Compliance Central - A Clear Path for Credit Unions Providing Financial Counseling
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