Navy Federal Loses Bid to Escape Fraud Investigations Suit (1)

Navy Federal Credit Union will have to face claims that it doesn’t sufficiently follow federal requirements for investigating fraud claims and informing customers of the results of those investigations.

The country’s largest credit union was unable to shake a proposed class action arguing that its fraud investigation policies violated the Electronic Fund Transfer Act, a 1978 law governing credit, debit, and other electronic payments, Judge William Q. Hayes of the US District Court for the Southern District of California ruled Sept. 20.

Hayes dismissed claims against Navy Fed alleging violations of California’s Unfair Competition Law.

Vienna, Va.-based Navy Fed declined ...