Skip to main content

Frivolous ADA lawsuits considered abuse against America's small businesses.

Please note some of our credit unions serving firefighters and first responders have been served with these frivolous lawsuits.


WASHINGTON—The Senate Judiciary Committee took a deep dive into what some are calling lawsuit abuse against America's small businesses during a hearing this week – specifically mentioning frivolous lawsuits filed under the Americans with Disability Act (ADA).
Ahead of the hearing, NAFCU informed the committee how these ADA lawsuits are impacting credit unions and asked that it further examine the issue. Numerous credit unions have been named as defendants in lawsuits that allege websites are out of compliance with ADA.
In his opening statement, committee Chairman Chuck Grassley (R-IA) used an example of a "drive-by" ADA lawsuit as frivolous. Sen. Jeff Flake (R-AZ) also made a large example out of the frivolousness of highly technical ADA lawsuits during the hearing, NAFCU reported.
NAFCU Vice President of Legislative Affairs Brad Thaler, in a letter to the committee, asked that leaders of the committee take steps to curb the rise in frivolous lawsuits that are occurring under the ADA, specifically in regard to unclear website access requirements.
"A number of lawsuits and dozens of demand letters have been received by credit unions over the accessibility of their websites," Thaler wrote Grassley and Ranking Member Dianne Feinstein (D-CA).
Thaler explained that credit unions want to ensure their members can access the services they need, "however abusive frivolous lawsuits can have a chilling effect forcing an institution to cut services due to litigation risk."  
National Federation of Independent Business Senior Executive Counsel Elizabeth Milito, a witness in the hearing, testified that ADA lawsuits are one of the largest instances of frivolous lawsuits faced by small businesses. Skadden, Arps, Slate, Meagher & Flom LLP Partner John Beisner, who testified on behalf of the U.S. Chamber of Commerce Institute for Legal Reform, said that ADA lawsuits are often about a quick payout and not even about actually correcting the violation.
“NAFCU has been incredibly active on ADA, urging members of Congress to take legislative action,” the association said. “A NAFCU-supported bill – the ADA Education and Reform Act of 2017 (HR 620) – would set conditions for filing civil actions over the failure to remove an architectural barrier to an existing public place, among other things. The bill cleared the House Judiciary Committee in September. NAFCU is actively working to expand the bill's protections to also cover website lawsuits. The association also sent a letter to the committee last month urging members to support additional legislation to clarify website access requirements under the ADA in order to curb frivolous lawsuits.”
CUToday

Comments

Popular posts from this blog

Three-Quarters of Consumers Familiar With CUs, But Just 1 in 4 Says a CU is PFI, & Other New Findings

WASHINGTON– More than three-quarters of U.S. consumers said they are familiar with credit unions and hold a positive impression, yet just one-in-four banks primarily with a credit union, a new survey has found. The 2026 Credit Union Consumer Perception Report from  CUCollaborate  surveyed 1,000 consumers across the U.S. in December 2025 to gauge their opinions on credit unions. It further found early 70% describe credit unions as trustworthy, and a majority recognize their advantages in fees and rates compared to traditional banks.  But positive sentiment is in decline with younger bankers, according to CUCollaborate. Gen Z consumers represented a sharp shift in credit union perception from older generations, the company said, noting that among those respondents, 36% indicated they had only heard the term “credit union” without having a deeper understanding or had never heard of the term at all.  Some “44% said they were somewhat familiar with credit unions, and a me...

No Change! Federal Reserve issues FOMC statement

  January 28, 2026 Federal Reserve issues FOMC statement For release at 2:00 p.m. EST Share Available indicators suggest that economic activity has been expanding at a solid pace. Job gains have remained low, and the unemployment rate has shown some signs of stabilization. Inflation remains somewhat elevated. The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. Uncertainty about the economic outlook remains elevated. The Committee is attentive to the risks to both sides of its dual mandate. In support of its goals, the Committee decided to maintain the target range for the federal funds rate at 3‑1/2 to 3‑3/4 percent. In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks. The Committee is strongly committed to supporting maximum employment and returning inflation to its 2 p...

New FRCUA Manuals Alert!

New & Updated Manuals Now in the First Responder Credit Union Academy! NCUA "What you Need to Know." Building a Budget Policies & Procedures CEO Strategic Planning Checklist Board Strategic Priorities Directors'  Strategic Planning Checklist We’re always improving the First Responder Credit Union Academy to give you the tools you need to succeed. Our manuals are regularly updated with the latest insights, best practices, and industry guidance — so you can stay informed, confident, and ready to serve your members. Check out the latest updates and keep your skills sharp:  https://www.ncofcu.org/first-responder-credit-union-academy  ================================================= Remember, you're not alone with  NCOFCU.org Join/Upgrade Check out some of NCOFCU's additional features: First Responder Credit Union Academy Financial Literacy Podcasts YouTube Mini's Blog Job Board  

Small credit union closures and mergers.

NCOFCU Podcast on the loss of small creditunions. Grant Sheehan CCUE | CEO-NCOFCU examines the rapid decline of small credit unions, why each closure matters to communities, and the threat this trend poses to the cooperative identity and tax protections of the movement. The episode explores practical solutions: larger credit unions acting as stewards, collaboration through shared resources and technology, and the advocacy work of the National Council of Firefighter Credit Unions to amplify every credit union's voice. Listen for a call to action on preserving community-focused financial cooperatives and strengthening the future of the credit union movement. Be sure to visit NCOFCU's "First Responders Credit Unions Academy" for your continued credit union education and certification in meeting N C U A’s requirements.  ================================================= Remember, you're not alone with  NCOFCU.org Join/Upgrade Check out some of NCOFCU's additional f...

Long-Stalled Credit Card Competition Act Moves Forward In Senate Clarity Act Markup

WASHINGTON—A long-stalled bipartisan push to boost competition in the credit card market moved closer to becoming law late Friday, as Sens. Roger Marshall (R-KS) and Dick Durbin (D-IL) advanced a new amendment attached to the Senate Agriculture Committee’s markup of the Digital Asset Market Structure and Investor Protection Act, commonly known as the Clarity Act. Dick Durbin The amendment, a core component of the long-debated Credit Card Competition Act, would prohibit major credit-card networks and large issuing banks from enforcing network exclusivity on credit cards. Supporters argue the measure would expand transaction-routing competition, weaken the dominance of the largest payment networks, and reduce swipe fees that merchants say inflate consumer prices. The renewed momentum reflects President Trump’s recent backing of efforts to rein in credit card costs, a shift that has altered the political trajectory of legislation that has struggled to advance in prior Congresses. With Tru...

Breaking: NCUA Moves to Remove a Major Barrier to Board Service

NCUA just proposed a rule that would allow federal credit unions to reimburse or directly pay reasonable dependent care costs for volunteer officials when those costs are incurred while attending board meetings or performing official duties. Childcare and eldercare costs are real barriers to serving on a board — especially for working professionals, single parents, and caregivers. At the same time, expectations for board engagement, training, and oversight continue to rise. A few important guardrails remain: ✔️ Applies only to federal credit unions ✔️ Covers dependent care only — not lost wages or compensation ✔️ Requires written board policy and reasonable controls ✔️ IRS tax treatment still applies (talk to your CPA) Bottom line: this won't fix board recruitment challenges by itself, but it removes a real friction point for people who want to serve and simply can't absorb the added costs. NCUA is also asking for comments — including whether training and conferences...

‘No One Wants a New Car Now.’ WSJ Columnist Offers His Take on Why

NEW YORK–That new car smell isn’t quite the intoxicating perfume it has been for a long time, according to one automotive analyst. Under the headline, “No One Wants a New Car Now. Here’s Why,” the Wall Street Journal’s well-regarded automotive columnist, Dan Neal, observed that “America’s fleet of cars and trucks is also getting long in the tooth.” Neal’s reference was to a study by S&P Global Mobility that found the average age of vehicles in the U.S. is now 12.6 years, up more than 14 months since 2014, with the average age of passenger cars hitting14 years. All-Time High Burden “In the past, the average-age statistic was taken as a sign of transportation’s burden on household budgets,” Neal wrote. “Those burdens remain near all-time hig...

Advice On Winning Over Gen Z In ’25

NEW YORK—As 2025 approaches the close of Q1, how can credit unions win over Gen Z? By tailoring credit rewards for a digital-first generation, a new report recommends. Gen Z is reshaping the workforce and redefining financial behaviors. As of 2024, this generation is poised to surpass Baby Boomers in workforce size and will make up 30% of the workforce by 2030. This rapid growth presents a major opportunity for financial institutions to tap into a younger, digitally native audience with distinct spending habits and financial needs, emphasized a GlobalData report authored by Zachary Johnson, specialist, campaign execution & strategy, financial services at VDX.tv. “Unlike previous generations, Gen Z’s economic journey has been shaped by inflation and delayed career starts due to the pandemic and skyrocketing living costs. These factors have made them highly dependent on credit, with Gen Zers being 23% more likely to own a credit card than Millennials at the same age, and carrying...

'Tis the season for fraud! Teller questions if member fraud is suspected.

  When a credit union employee suspects a member may be subject to fraud, they should initiate a careful conversation focusing on the nature of the transaction and external influences. The goal is to help the member identify red flags without the employee asking for sensitive personal information that the credit union should already have on file.  Initial Verification Questions    .pdf Before discussing the specifics of the suspicious activity, the employee should confirm the member's identity in accordance with established internal protocols.  Questions About the Transaction/Activity If the member confirms they are conducting a suspicious transaction (e.g., a large wire transfer or purchase of gift cards ), the employee should ask questions to help the member pause and think critically:  "What is the purpose of this transaction?" "Do you personally know the person or business you are sending money to?" "Have you ever met the...