BETHESDA, Md.—A lawsuit seeking class action status has been filed that alleges Marriott Employees Federal Credit Union here is in violation of the Truth in Lending Act (TILA).
The lawsuit was filed in United States District Court for the Eastern District of Pennsylvania, and was first reported by Keith Leggett, the former senior vice president and senior economist at the ABA.
This lawsuit comes several weeks after the credit union found itself being scrutinized in an article in the New York Times in which members of Marriott Employees FCU complained about the credit unions fees, as CUToday.info reported here.
At issue in the lawsuit is the credit union's pattern and practice associated with so-called mini-loans made to its members. These mini-loans are not Payday Alternative Loans authorized by the National Credit Union Administration, Leggett said.
The class members allege that loan charges were not fully disclosed.
By not providing a full picture of the costs associated with taking out the loan, the workers are alleging in the lawsuit that the credit union is violating the Truth in Lending Act.