SACRAMENTO, Calif.—CUNA has filed an amicus brief on behalf of Golden 1 Credit Union in a lawsuit, Burgardt v. The Golden 1 Credit Union.
At issue is whether The Golden 1 Credit Union can compel the plaintiff to arbitrate his claims.
According to CUNA, The Golden 1 Credit Union’s membership agreement did not include an arbitration provision when the plaintiff joined, but Golden 1 later added it, and the plaintiff did not opt out. The plaintiff later filed a putative class action lawsuit in Sacramento, Calif. related to non-sufficient funds fees, CUNA explained.
A state superior court denied The Golden 1’s motion to compel arbitration, a decision affirmed by the state appellate court. CUNA’s brief was filed in support of The Golden 1’s petition that the United States Supreme Court review the Court of Appeal’s decision, according to the trade group.
CUNA said its brief supports Golden 1 Credit Union’s position that it can add an arbitration provision through mutual assent, specifically by giving members notice of the proposed provision and the opportunity to opt out.
‘Operational Uncertainty Abounds’
The brief states that “operational uncertainty abounds in determining the enforceability of arbitration agreements added through mutual assent, including the notice-and-opportunity-to-opt-out process used by The Golden 1 Credit Union.”
It adds the standards fabricated by the courts are “confusing, often conflicting, and lack even-handed reasoning that comport with the Federal Arbitration Act’s equal-treatment principle.”
CUNA also argued that limiting credit unions’ use of arbitration agreements will harm access to the safe and affordable services credit unions provide, including services provided to those who lack access to traditional banking.
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