ANALYSIS: First a recap: Yes, the new WCUL account agreement brochures are now available. (See link here.)
Subscribers to the old WCUL #82004 Your Account Agreement brochure must let us know which version of the replacement brochure you want – #83005 (with arbitration agreement) or #83006 (without arbitration agreement). We ask that one person from your credit union be designated to choose your new form here or send us an email indicating which one version of the new account agreement brochure forms you wish to license going forward. For questions or issues with ordering the new forms on our website, please contact Jeff Bonk.
For questions about use of the forms, please call The League’s Compliance Hotline at (608) 640-4050 or email the Compliance Mailbox.
Whether your credit union uses the WCUL forms or another vendor’s, here are some great new resources to help reduce account risks, particularly relating to overdraft protection lawsuits and arbitration agreements.
CUNA Mutual on overdraft protection class-action lawsuits
The threat from class action lawsuits continues to grow. CUNA Mutual has issued a new risk alert: Overdraft / NSF Fee Class Action Litigation Not Slowing Down for CUs (password-protected link).
The Risk Alert describes specific trouble spots that have been identified as the basis of many overdraft and NSF fee lawsuits, including class actions. It also offers concrete guidance on actions credit union can take to reduce the risks, such as:
- Suggestions on how to disclose the details of signature-based debit card transactions,
- If applicable, tips on disclosing that multiple NSF fees may be charged on the same transaction,
- Clear description of the balance calculation method,
- Removing your account agreement brochure from public view on your website, and
- Considering use of an arbitration agreement with a class action waiver.
CUNA Mutual offers additional guidance specific to users of its LOANLINER Membership and Account agreement forms.
Husch Blackwell updates on class action lawsuits and arbitration agreements
The League is cohosting the webinar series, Attorney’s Conference for Non-Attorneys. The 3-part series is sponsored by the Husch Blackwell law firm which provides services to The League and many Wisconsin credit unions.
- An update on Overdraft and NSF Fees –Litigation Trends was presented by Lauren Capitini of Husch Blackwell in Part I.
- A presentation by Marci Kawski of Husch Blackwell, in Part 2, addressed Adopting an Arbitration Agreement: The Pros, the Cons, and the Details, We recommend it for anyone considering whether to offer an arbitration agreement as a defensive strategy for class action lawsuits.
If you missed these presentations in Parts 1 and 2, you can still register for the full 3-part series for $89 at this link: Attorney’s Conference for Non-Attorneys. After you register, please send an email here to request the recordings of the Parts 1 and 2 of the series, now available.
Here is the content listing for all three parts of the series.
September 28, 2021, Part 1 – Class Actions
Litigation and class actions can have a harmful impact on credit unions. This session provides an overview of trending class action developments along with information on how credit unions can protect themselves from the latest legal theories being asserted by plaintiffs, lawyers, and regulators. The following class action trends will be discussed:
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Overdraft/Non-Sufficient Fund (NSF) fees
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Guaranteed Asset Protection (GAP) insurance
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Telephone Consumer Protection Act (TCPA)
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Foreign transaction fees
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ADA website update
November 10, 2021, Part 2 – Risk Mitigation
Many credit unions look to an arbitration program to help minimize legal risks, and some credit unions are considering the implementation of arbitration clauses as a dispute resolution technique in resolving legal disputes. Learn more about adopting an arbitration clause in this session. This session will also provide general risk mitigation strategies to help protect credit unions along with more specific strategies related to cybersecurity and employer HR risks in a changing workplace. The following topics will be covered:
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CMG Bond Claims Update
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HR/Employer Risks
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Arbitration clauses
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Remote Capture update
Tuesday, January 11, 2022, Part 3 – Hot Regulatory Issues | 9:30 am – 12:30 pm
Credit unions face many regulatory changes and are burdened with the challenges of maintaining compliance with these changes. This session explores several hot button regulatory issues and provides information regarding recent bond claims that threaten the credit union industry. Several of the topics include:
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Cannabis banking
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Reg E – Electronic payment: Who is liable?
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Consumer privacy and data
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Cybersecurity