California and Nevada credit union leaders have access to a valuable new resource as discussion and regulatory scrutiny on overdraft and non-sufficient funds (NSF) litigation fees continues circulating with legislators and regulators in Washington, D.C.

Law firms continue sending demand letters that threaten a lawsuit and/or announce the filing of a lawsuit against credit unions alleging members were improperly assessed overdraft and/or NSF fees. These lawsuits (mostly class-action suits) have plagued the financial services industry for several years, resulting in multimillion-dollar losses. 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 webinar recording — Overdraft/NSF Fee Litigation. This 42-minute recording is accessible to all credit unions within the Related Resources section of the Overdraft/NSF Fee Litigation page (part of the Emerging Risks Outlook web series). It highlights:

• Common allegations and 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 webpage 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 risk consultants.

Credit union leaders can use this resource as they continue serving members, as the Leagues are always looking for ways to provide the right guidance on important issues and topics.

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