LOS ANGELES – Lawyers for two members of Educational Employees FCU agreed Friday to voluntarily dismiss an overdraft suit they brought against the Fresno credit union, as the plaintiffs’ bar’s case against credit unions appears to be dissolving.

Friday’s action was the fourth overdraft suit dismissed against credit unions in recent weeks, following dismissals of suits brought against Xceed Financial FCU, SchoolsFirst FCU and Kern Schools FCU. Three of the dismissed suits were filed by the same San Jose, Calif., law firm.

There are still overdraft suits pending against Star One CU, Alliant CU, Alabama Telco CU, America’s First FCU and Legacy Community FCU.

All of the suits allege the credit unions engage in unfair and deceptive business practices by reordering debit transactions so that the largest transactions are debited first, instead of the most recent.

Similar claims against several large banks have resulted in the banks paying multi-million dollar settlements.


Subscribe Now

Authoritative analysis and perspective for every segment of the credit union industry

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.