21 THE NAFCU JOURNAL March–April 2022 The size of settlements for claims against credit unions over the past few years are significant. Three examples include: $1.8 million for a northeast credit union,1 $1.5 million for a western credit union2 and $16 million for a national credit union.3 There is no magic formula to completely protect a credit union from a lawsuit filed by an unhappy member, but there are ways to mitigate litigation risks, says David Park, NCCO, Senior Regulatory Compliance Counsel, NAFCU. “We expect to continue seeing litigation related to different types of fees charged by credit unions throughout the year, with most of those claims brought under state laws,” he says. “In many cases, the allegations are for breach of contract or unfair and deceptive trade practices.”
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