Removing Barriers Blog

CUNA Continues to Sound the Alarm on Frivolous Lawsuits
Posted November 09,2017 by ManojBhoi

The Senate Judiciary Committee held a hearing entitled, “The Impact of Lawsuit Abuse on American Small Businesses and Job Creators.” CUNA sent a letter highlighting our concern about a recent uptick in litigation threats against credit unions brought under the cover of the Americans with Disability Act (ADA).  

In his opening statement at yesterday’s hearing on the impact of frivolous lawsuits on small business, Senate Judiciary Committee Chairman Charles Grassley (R-IA) mentioned CUNA as he submitted our letter for the hearing record.  

Over the past few months credit unions have seen a drastic rise of demand letters threatening class action litigation concerning website accessibility requirements and the ADA.  Often the same law firms and lawyers will target many different credit unions, even under the guise of seeking protection for non-members of the credit union that could arguably have no reason for even wanting to access the website. These shakedowns are harming credit unions and their members and are making it difficult for credit unions to serve all members including those who are protected by the ADA.  Perversely, the threats of litigation are having the exact opposite effect of increasing the ability to provide services to all members. 

CUNA also met with the DoJ last week and delivered a letter signed by 61 Members of Congress seeking clarity on the frivolous ADA litigation.