NEW YORK—America’s Credit Unions and the New York Credit Union Association, together with American Bankers Association, Bank Policy Institute, and the Clearing House Association, have filed an amicus brief in a case brought by the New York Attorney General against Citibank.
The legal action, ACU said, supports Citibank’s position, arguing that the Uniform Commercial Code covers online wire transfers instead of the Electronic Fund Transfer Act (EFTA) as asserted by the NYAG’s lawsuit.
The amicus brief argues that expanding the EFTA to include such transfers is contrary to decades of case law and regulatory guidance. Such a change would force banks and credit unions “to scramble to determine their legal obligations and to expend a tremendous amount of time and resources to reorganize their operations that had been built on a decades-old doctrinal foundation,” argued the groups.
Citibank is pursuing an interlocutory appeal of the District Court's decision denying their motion to dismiss the case.