You Should Know About These Cases

August 29, 2019 at 9:15 am Leave a comment

ADA Suit Another Victory for Credit Unions

Credit unions got another important legal victory yesterday when the Court of Appeals for the Sixth Circuit held that persons outside of a credit union’s field of membership did not have authority to sue a Michigan credit union for alleged ADA website violations. The decision is the third by a federal circuit appellate court to make such a ruling, further solidifying a defense for all credit unions facing these lawsuits.

I am going to assume that if you read this blog, you know the basic arguments and issues involved. I will only reiterate what I always reiterate when it comes to these ADA cases. Most importantly, if a member from within your field of membership was to bring a lawsuit alleging a website ADA violation, these cases would not offer a defense to the claim. In addition, these cases do not address the ultimate issue, which is whether or not the ADA mandates that websites be accessible to disabled persons.

Beware of Overdraft Cases with a Twist

A few months ago, I highlighted a lawsuit that was filed against a New York credit union that offered a new twist on the ubiquitous overdraft fee litigation that has been brought against credit unions and banks for a few years now. In the more traditional overdraft litigation, the issue is whether or not the financial institution has accurately described the method it will use to determine when there are insufficient funds in an account, triggering an overdraft. This is the difference between a ledger balance and available balance method of determining availability. Either approach is acceptable, but must be properly disclosed.

Many of your members enter into agreements with businesses whereby the businesses are allowed to make ACH withdrawals from their accounts on a monthly basis. While credit unions properly disclose that these payment requests may result in NSF charges, what happens when the business sends out repeated ACH payment requests seeking the same payment? The litigants are arguing that repeated NSF charges for the subsequent transactions are not authorized by the account agreements. Much of this litigation is just starting, but I have read a couple of complaints. Bottom line, this is one you should definitely run by your attorney, especially if your credit union is large enough to be an attractive class action target.

Gillibrand Announces She’s Dropping Out: Did You Know She Dropped In?

New York Senator Kirsten Gillibrand became the latest candidate to announce she was dropping out of the ludicrously overcrowded field of democrats lining up to take on President Trump in 2020. You know your presidential campaign did not get off the ground when most people did not realize you were running until you announced you were ending your campaign.

My Unsolicited Sports Recommendation

It’s been a while since I made a totally unrelated sports comment in my blog, but yesterday the Meier brothers went to Queens to watch third round US Open tennis. I know many of the blog’s readers are sports fans, and this is certainly something I would put on your sports bucket list, even if you are just a mildly interested tennis fan. It’s a great environment, and you can jump in and out of several matches if you go early on in the tournament.

On that note, peace out.

Entry filed under: Compliance, Legal Watch, Political. Tags: , , , .

Another Day, Another Data Breach More Proof that the TCPA is a Mess

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Authored By:

Henry Meier, Esq., Senior Vice President, General Counsel, New York Credit Union Association.

The views Henry expresses are Henry’s alone and do not necessarily reflect the views of the Association. In addition, although Henry strives to give his readers useful and accurate information on a broad range of subjects, many of which involve legal disputes, his views are not a substitute for legal advise from retained counsel.

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