An amicus brief filed this week in a credit union case focused on the negative impact of improper class action suits on consumers. America’s Credit Unions and other organizations joined together in the brief filed in the 4th Circuit Court of Appeals in Olivier et al v. Navy Federal Credit Union, pointing out that reversing a lower court’s decision involving class action lawsuits would bring multiple harmful effects on consumers. The district court denied plaintiffs class certification in a lawsuit accusing Navy Federal of violations of the Fair Housing Act and Equal Credit Opportunity Act. Plaintiffs are now seeking a reversal in the appeals court.

The brief focuses on the negative impact that improper class actions have on the consumer credit industry, including access to credit, and the related economic harm suffered by lenders, borrowers, and American businesses. 

It argues the court should affirm the district court’s decision denying plaintiffs’ class certification.

Reversing the decision would “encourage improper use of the class action procedure, which places undue pressure on defendant companies to settle even weak claims for which they have a meritorious defense. The significant costs that attend such spurious class actions harm the American economy because those costs are ultimately absorbed by consumers, employees, borrowers, and small businesses,” the brief reads.

America’s Credit Unions filed the brief with the U.S. Chamber of Commerce and the Mortgage Bankers Association.