DALLAS – Credit unions were hit last week with a new group of suits by one consumer claiming they violated the public disclosure provisions of the Electronic Funds Transfer Act by failing to post non-member fees being charged at their ATMs as required by the EFTA.
Last week’s suits, coming as numerous credit unions are settling similar civil actions, name Firestone Community CU, Centric FCU, Monroe Telco FCU, First Light FCU and Capital One Bank and were filed by New York resident Don Anderson, who has filed similar EFTA suits in recent weeks against Union Bank, First National Bank, Metropolitan Bank, Liberty Bank, First Fidelity Bank, First Security Bank, BancFirst and First Bank of Chandler.
In his suit against First Light FCU, Anderson said he withdrew cash from the credit union’s El Paso ATM and was charged a $2.50 non-member surcharge though there was no notice posted on or at the ATM, as required under the EFTA.
In his suits Anderson says the credit unions were barred from charging “usage fee or similar fee for providing host transfer services because it failed to comply with EFTA’s notice requirements.”
Anderson is asking the court for class action status for the First Light suit and all of the others covering all people who may have been assessed a surcharge.
Dozens of credit unions have been hit with similar EFTA suits over the past year, with several opting to settle rather than pay large fines. Under the EFTA, violations could result in fines of up to $500,000. In one settlement, JSC FCU of Houston, agreed to pay users of their ATM up to $100 each time they used the machine. In another, Jamestown Area Community FCU in New York agreed to pay non-member users of its ATM up to $100 for each time they used the machine.
Lawyers for Anderson did not return several phone calls seeking comment.
