Both national credit union trade associations and Georgia Credit Union Affiliates have filed an amicus brief in defense of a credit union being sued over overdraft fees.

The brief was filed in the U.S. Court of Appeals for the 11th Circuit.

LGE Community Credit Union, a $1.2 billion asset institution based in Marietta, Ga., is being hit with a class action lawsuit that 29 other financial institutions are also dealing with. These suits are challenge their method of assessing overdraft fees based on the “available balance” rather than the “ledger balance” in member accounts.

Over half of all credit union members have chosen to use overdraft services.

The Credit Union National Association is trying to get these cases dismissed as many small credit unions have been forced to enter into costly settlements.

“Our brief identifies crucial regulatory history as well as a critical due process argument,” said Leah Dempsey, senior director of advocacy and counsel for CUNA, in a press release. “CUNA's assistance is particularly warranted in light of the fact that this is the first federal appellate court to consider the issues presented. And, many credit unions are facing ‘gotcha’ litigation on this issue based on highly technical alleged violations.”

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