BIRMINGHAM, Ala.-A federal court here agreed to dismiss two more class action suits challenging credit union practices on overdrafts, the fifth and sixth suits to be dismissed in the past two weeks.
The dismissal of the suits against America's First FCU and Legacy Community FCU come after the Alabama credit unions argued that membership agreements signed by the plaintiffs in the case require members to arbitrate and not litigate disputes with their credit unions, and also bar class action suits.
The credit union wins follow recent dismissals of several overdraft suits. Suits are still pending against California's Star One CU, Alliant CU and Alabama Telco.
Each suit claims the CU engaged in unfair business practices by reordering debit transactions from largest to smallest.
