With Two More Frivolous ADA Suits Against CUs Tossed, CU System Continues Advocacy Efforts

Two credit unions facing frivolous lawsuits alleging Americans with Disabilities Act (ADA) violations were thrown out this week. Credit unions are facing lawsuits due to uncertainty with how the ADA applies to Web sites, and CUNA and the leagues have deployed the system’s 360-degree advocacy resources to find a solution in the legal, regulatory and legislative arenas.

Complaints against Dover-Phila FCU, Dover, Ohio and Family Security CU, Decatur, Ala., were dismissed on the grounds that the plaintiff lacks standing to sue. CUNA joined the Ohio Credit Union League in filing a brief in support of Dover-Phila, and partnered with the League of Southeastern Credit Unions and Affiliates in support of Family Security.

“We are glad to see complaints dismissed against Dover-Philadelphia Federal Credit Union and Family Security Credit Union. The courts properly found that the plaintiffs lacked standing, given they were ineligible for membership in the credit unions,” said CUNA President/CEO Jim Nussle. “These frivolous lawsuits are harmful to small businesses and do not confer benefits upon the disabled Americans the ADA is designed to protect. CUNA will continue its work across the country to fight the meritless claims brought throughout these lawsuits.”

More than 100 members of Congress wrote the Department of Justice last week sharing CUNA concerns with confusion over the ADA’s applicability to Web sites. Rep’s Leonard Lance (R-7), Frank LoBiondo (R-2), Tom MacArthur (R-3) and Bill Pascrell, Jr. (D-9) were among the signatories to the latest letter. Rep. Bonnie Watson Coleman signed an earlier letter sent in October.

CUNA and the NJCUL have compliance resources available for member credit unions, designed to help them ward off legal threats. Interested credit unions should contact NJCUL VP of Compliance & Regulatory Affairs Nicola Foggie at nfoggie@njcul.org or 800-792-8861, ext. 112.

in Compliance & Regulatory News