Credit unions were hit last week with a new group of lawsuits by one consumer claiming they violated the public-disclosure provisions of the Electronic Funds Transfer Act by failing to post nonmember fees being charged at their ATMs as required by the law.
New York resident Don Anderson filed last week’s suits, which come as numerous credit unions are settling similar civil actions. Named in the complaints were Firestone Community Credit Union, Centric Federal Credit Union, Monroe Telco Federal Credit Union, First Light Federal Credit Union and Capital One Bank. Anderson has filed similar EFT Act 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, Anderson said he withdrew cash from the credit union’s El Paso, Texas, ATM and was charged a $2.50 nonmember surcharge, though the machine did notify users of the fee as required under the law.
In his suits, Anderson says the credit unions were barred from charging a “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 the others covering all cardholders 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 instead of pay large fines. Under the law, violations could result in fines of up to $500,000. I
In one settlement, JSC Federal Credit Union of Houston agreed to pay users of its ATM up to $100 each time they used the machine (
Lawyers for Anderson did not return several phone calls seeking comment.
