Credit Union's Arbitration Clause 'Questionable,' Judge Says

Law360, New York (October 13, 2016, 5:21 PM EDT) -- A Pennsylvania federal judge on Wednesday declined to dismiss a proposed class action over a Maryland-based credit union’s allegedly improper overdraft fees, saying that the methods through which the credit union sought to force arbitration may have been “questionable.”

U.S. District Judge J. William Ditter Jr. said in his order that he would not stay or dismiss plaintiff Sheila Horton’s lawsuit against FedChoice Federal Credit Union because there’s a dispute about the validity of the online agreement the credit union says she accepted that contained a so-called forced arbitration clause. As such, he ordered that the two sides begin discovery proceedings....

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Pennsylvania Eastern

Nature of Suit

Contract: Other

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Date Filed

January 26, 2016

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