News & Analysis as of

Credit Unions

Orrick, Herrington & Sutcliffe LLP

Eleventh Circuit allows putative class action to proceed after defendant fails to register arbitration clause with administrator

On May 21, the U.S. Court of Appeals for the Eleventh Circuit affirmed the lower court’s denial of the defendant’s motion to compel arbitration in a lawsuit against a credit union over alleged improper fees charged to the...more

Orrick, Herrington & Sutcliffe LLP

Georgia amends banking and finance laws with new act

On May 14, the Georgia General Assembly passed HB 15 revising various banking and finance provisions. The bill revises procedures for incorporators of credit unions. It also addressed licensure requirements for money...more

King & Spalding

Minnesota Court Allows Counterclaims Against Credit Union

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On March 10, 2025, a Minnesota state court judge granted in part and denied in part a credit union’s motion for summary judgment—and granted the defendants’ motion for leave to assert counterclaims against the credit union—in...more

Amundsen Davis LLC

What a Tracking Technology Class Action Lawsuit Can Teach Financial Institutions

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Financial institutions that use code-based tracking technologies may soon find themselves facing increased scrutiny and legal exposure as the next wave of class action litigation begins. On December 19, 2024, a member of...more

Orrick, Herrington & Sutcliffe LLP

CFPB backs industry associations in bid to strike down medical debt rule

On April 30, the CFPB and two industry associations filed a joint motion with the U.S. District Court for the Eastern District of Texas requesting that the court vacate the Bureau’s medical debt rule. The associations,...more

Husch Blackwell LLP

Removal of NCUA Board Members: What it Means for You

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After the first 100 days of President Donald Trump’s second term, few areas of government have avoided disruption or controversy, and the regulation of credit unions—normally a quiet corner within the federal bureaucracy—has...more

Woods Rogers

Depository Institution Not Liable in ACH Fraud Case

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On March 26, 2025, the U.S. Court of Appeals for the Fourth Circuit issued an important decision addressing a depository institution’s liability for wire transfer losses resulting from a business email compromise scam....more

Sheppard Mullin Richter & Hampton LLP

Fourth Circuit Rejects Rehearing in ACH Fraud Suit Alleging Violations of KYC Rules and NACHA Operating Standards

On April 22, the Fourth Circuit declined to reconsider a panel ruling that found a credit union could not be held liable for a scam in which fraudsters diverted over $560,000 from a metal fabricator through unauthorized ACH...more

Orrick, Herrington & Sutcliffe LLP

NCUA announces sole board member following two terminations

On April 18, the NCUA confirmed that President Trump terminated the positions of two NCUA board members, Todd Harper and Tanya Otsuka, leaving the agency with a single board member: Chairman Kyle S. Hauptman. The NCUA assured...more

Katten Muchin Rosenman LLP

The More You Know Can Hurt You: Court Rules Financial Institutions Need 'Actual Knowledge' of Mismatches for ACH Scam Liability

On March 26, the US Court of Appeals for the Fourth Circuit issued a decision that has important ramifications for banks and credit unions that process millions of Automated Clearing House (ACH) and Electronic Funds Transfer...more

Orrick, Herrington & Sutcliffe LLP

Fourth Circuit reverses decision in $550K ACH fraud transfer case

On March 26, the U.S. Court of Appeals for the Fourth Circuit reversed and remanded a lower court’s decision in a case involving a fraudulent email scam that caused a financial loss of over $550,000. The plaintiff, a metal...more

Holland & Knight LLP

Fourth Circuit Limits Beneficiary Bank Liability in BEC Schemes, Requires Actual Knowledge

Holland & Knight LLP on

Business email compromise (BEC) fraud, driven by technology and increasing sophistication by criminal organizations, has become a major issue for both consumers and financial institutions. According to a September 2024...more

Troutman Pepper Locke

Fourth Circuit Holds UCC Article 4A Requires Beneficiary Bank’s Actual Knowledge for Wire Misdescription Liability in Business...

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On March 26, the U.S. Court of Appeals for the Fourth Circuit reversed a district court’s decision holding a credit union liable for a wire transfer in a business email compromise scam case where the credit union lacked...more

Orrick, Herrington & Sutcliffe LLP

District court receives motion for preliminary injunction in Illinois interchange fee suit

On March 17, a group of banking and credit union trade associations (the plaintiffs) filed a motion for summary judgment in the U.S. District Court for the Northern District of Illinois, arguing the Illinois Interchange Fee...more

Troutman Pepper Locke

Troutman Pepper Locke Weekly Consumer Financial Services Newsletter – March 2025 # 2

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To keep you informed of recent activities, below are several of the most significant federal and state events that have influenced the Consumer Financial Services industry over the past week....more

Orrick, Herrington & Sutcliffe LLP

NCUA updates policy on overdraft and NSF fee data collection

On March 3, the NCUA announced changes to its policy on the collection and publication of overdraft and NSF fee income data from credit unions. Previously, the NCUA required federally insured credit unions with assets...more

Allen Matkins

What Doesn't The DFPI Regulate?

Allen Matkins on

In the mid 1990s, I had the privilege of serving as Commissioner of Corporations for the State of California.  At that time, the DOC was known as a tough securities regulator.  However, the times they were a changin'.  In...more

Ballard Spahr LLP

NCUA Rescinds Policy to Publish Credit Unions’ Overdraft and NSF Income

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Chairman Kyle S. Hauptman announced that the National Credit Union Administration (NCUA) will no longer publish overdraft and non-sufficient fund (NSF) fee income for individual credit unions with more than $1 billion in...more

Mayer Brown

2024 Consumer Financial Services Highlights

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REGULATORY, COMPLIANCE & LICENSING - Mayer Brown's exceptional breadth of knowledge and experience helps consumer finance and mortgage finance entities navigate the broad range of US federal and state laws impacting their...more

Orrick, Herrington & Sutcliffe LLP

Trump signs executive order to reduce the federal bureaucracy, eliminates community bank and credit union advisory committees

On February 19, President Trump issued an executive order to significantly reduce the federal bureaucracy’s size, following the administration’s policies to minimize government waste, reduce inflation, and encourage...more

Orrick, Herrington & Sutcliffe LLP

District court grants partial preliminary injunction in case challenging Illinois law on interchange fees

Recently, the U.S. District Court for the Northern District of Illinois Court granted a partial preliminary injunction sought by banking associations against the Illinois Attorney General over the Illinois Interchange Fee...more

Troutman Pepper Locke

Deposit Account Litigation: Highlights From 2024 and What to Expect in 2025 — The Consumer Finance Podcast

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In this episode of The Consumer Finance Podcast, Chris Willis is joined by Mary Zinsner and Heryka Knoespel, partners in Troutman Pepper Locke’s Consumer Financial Services Practice Group, to discuss the latest in deposit...more

Cozen O'Connor

Illinois Insights: An update from Cozen O'Connor (2/10)

Cozen O'Connor on

Judge declines to extend ‘swipe fee’ injunction to credit unions, applies it to out-of-state banks - “A federal judge on Thursday declined to issue an injunction to stop an Illinois law that bans certain credit card fees...more

Kilpatrick

5 Key Takeaways | Debating Critical Issues Facing the Banking Industry

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Kilpatrick partner Gary Bronstein joined other thought leaders at the 2025 Bank Director Acquire of Be Acquired Conference to discuss and debate some of the most interesting issues in banking. This annual gathering provides...more

Troutman Pepper Locke

NCUA’s New Board Chairman Hauptman Outlines His Priorities for Agency

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This week, President Trump designated National Credit Union Administration (NCUA) Vice Chairman Kyle Hauptman as the thirteenth Chairman of the NCUA Board. Hauptman succeeds Todd Harper as NCUA Chairman. In the press release...more

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