PAWTUCKET, R.I. - (04/13/05) -- In an action that could have broadramifications among credit unions and banks, a local attorney fileda purported class action suit here Monday claiming Pawtucket CUviolated the Electronic Funds Transfer Act by failing to properlydisclose the fees it charges non-members on its ATMs. The suit wasfiled in state court on behalf of a local resident, Minoska Pena,but is expected to be joined by others as part of a class action,according to Christopher Lefebvre, the attorney representing Pena.Lefebvre said that the state's second largest credit union failedto make proper disclosures on fees charged to non-credit unionusers on its 12 ATMs, despite a requirement under the EFT Act, alsoknown as the Federal Reserve's Reg E, that fees must be disclosedconspicuously and prominently both on the front of the machines andon screen. "It's going to be up to the courts to determine whatthat means," Lefebvre told The Credit Union Journal. Credit unionofficials refused to comment Tuesday, saying they had not seen thesuit yet. "At this point, without having been served, it'spremature to really say what is, or what isn't going on," saidTimothy Germaine, vice president of the $800 million credit union.Violation of the EFT Act could bring a fine of up to $500,000, aswell as reimbursement of fees charged to consumers. Lefebvre, alsofiled similar suits against three national banks in federal courtin Boston Monday; Bank of America, Sovereign Bank and CitizensBank, and claimed that lack of adequate disclosure is prevalentamong both credit unions and banks. "If you took a survey, youwould be surprised how many banks and credit unions fail miserablyat complying with the law," he said.
-
Liberty Bank in Salt Lake City had been "structurally unprofitable" since 2008, according to its regulators. Experts criticized the FDIC for allowing the bank's demise to play out in slow motion.
5h ago -
The New York-based bank says it will push its concentration of commercial real estate loans below 400% of risk-based capital over the next two years and focus more on C&I.
6h ago -
The San Francisco-based firm's Anchorage Digital Trusted Liquidity and Settlement network, better known as Atlas, will allow clients to settle a range of cryptocurrency transactions.
9h ago -
Consumer spending slowed and charge-offs rose during the first quarter, but Bread Financial said a pending late-fee rule may not be as devastating to its revenue as the Columbus, Ohio-based firm initially feared.
11h ago -
Artificial intelligence models are energy hogs. Climate First Bank and UBS are among the very few trying to solve this problem.
11h ago -
The FDIC board debated and ultimately withdrew two separate proposals to address asset managers' control over banks, but acting Comptroller of the Currency Michael Hsu said he couldn't support either and called for more research and debate about how asset managers' control over banks impacts safety and soundness.
April 25