CUNA and Wisconsin Credit Union League win in State Supreme Court decision
WASHINGTON, DC (April 24, 2019) — The Wisconsin Supreme Court ruled in favor of Credit Union National Association (CUNA) and the Wisconsin Credit Union League (WCUL) to uphold the organizations’ narrow interpretation of the Wisconsin Consumer Act (WCA). CUNA and WCUL filed a joint amicus brief in the case of Security Finance v. Kirsch to recognize the importance of the issue for credit unions and other consumer lenders.
“Wisconsin credit unions attempting good-faith efforts to collect on legitimate debts faced frivolous lawsuits as a result, which is why CUNA and the Wisconsin Credit Union League needed to act,” said CUNA President/CEO Jim Nussle. “We’re glad the court agreed with us, and we thank the Wisconsin Credit Union League for their leadership on this matter on behalf of Wisconsin’s 128 credit unions.”
Credit unions in Wisconsin were among lenders in the state targeted by plaintiffs’ attorneys alleging violations of the WCA. The court’s decision is now a binding precedent for other courts throughout the state. In the brief, CUNA and the WCUL asserted that a debtor that has been sued on a consumer credit transaction without receiving proper notice does not entitle the debtor to sue the creditor for damages under a provision in the WCA.
“We’re happy with the court’s common-sense opinion. This debtor defaulted on a loan but then asked the courts to erase the debt and award him damages just because the lender forgot to send out a notice before suing him,” said Paul Guttormsson, Vice President of Legal and Compliance at the WCUL. “The Wisconsin Supreme Court honored long-standing precedent in this state, and the plain language of the Wisconsin Consumer Act, and told him no.”
The court’s final ruling stated that “the creditor’s failure to provide such notice does not constitute a sufficient basis for relief” and that the failure to provide notice “was merely a failure to comply with a procedural requirement…such failure did not disrupt [creditor] Security’s right to payment from [debtor] Kirsch.”
About CUNA
Credit Union National Association (CUNA) is the only national association that advocates on behalf of all of America’s credit unions, which are owned by 135 million consumer members. CUNA, along with its network of affiliated state credit union leagues, delivers unwavering advocacy, continuous professional growth and operational confidence to protect the best interests of all credit unions. For more information about CUNA, visit cuna.org. To find your nearest credit union, visit YourMoneyFurther.com.
