TACOMA, Wash. A federal court rejected a member’s suit against America’s CU claiming it illegally closed his account because of suspected check kiting.
In granting the motion for summary judgment, the U.S. District Court for the Western District of Washington’s Judge Ronald Leighton ruled the credit union did not violate provisions of the Electronic Funds Transfer Act, known as Reg E, because it properly notified the member -- Joshua Shapiro -- of the overdrafts and other irregularities in his account. Judge Leighton also noted that all members of the Lewis McChord, Wash.-based CU are notified of its funds availability policy when they sign up for accounts.
In addition, the court ruled that the $400 million-asset credit union did not violate provisions of the Federal CU Act by expelling Schapiro without a vote by the board or the members—because Schapiro was never expelled, his account was simply terminated.
Judge Leighton ordered the credit union to return Shapiro’s $1,255.44 it is holding and dismissed the suit.
