Arbitration Provision and Class-action Waiver FAQs

Q: Why is FIRST CITY CREDIT UNION implementing this provision?
A: First City Credit Union is implementing an arbitration and class-action waiver provision as a way to protect our member-owners and First City Credit Union by requiring that the parties work together to resolve disputes quickly, cost-effectively, and amicably in the limited instances where a dispute arises.

Q: Why is the Arbitration and Class-Action Waiver Provision being added now?
A: First City Credit Union has become aware of an increasing number of class actions being asserted against financial institutions, such as credit unions. Arbitration provisions are very common and often times included in the terms and conditions for many credit unions and financial institutions. Because First City Credit Union is a not-for-profit, member-owned financial cooperative, this provision was developed to ensure that individual members can assess and make an individual determination as to the best course of resolution as it relates to individual interests as well as all First City Credit Union member-owners.

Q: What is arbitration?
A: Arbitration is a form of alternative dispute resolution in which a neutral third-party (the arbitrator), rather than a judge or a jury, applies the law to the facts of a dispute to resolve the dispute. Under binding arbitration, as is required here, the parties agree to accept the arbitrator’s decision as final, limiting their right to seek resolution of the dispute by the court. Arbitration can be an efficient means to resolve legal disputes between parties as it is designed to be less costly than filing in court without impacting the available remedies.

Q: What is an Arbitration and Class-Action Waiver Provision?
A: An agreement between First City Credit Union and its members to resolve all Covered Disputes, as the term is defined in the Membership & Account Agreement, through individual arbitration.

Q: Must all disputes be arbitrated?
A: No. The Arbitration and Class-Action Waiver excludes certain individual actions as set forth in Dispute Resolution-Mandatory Arbitration Section of the Membership & Account Agreement.

Q: Where can I learn more about arbitration?
A: For more information about arbitration and rules governing arbitrations, visit the American Arbitration Association’s website at: www.adr.org, or JAMS’ website at www.jamsadr.com.

Q: What is a class action?
A: A class action is a type of civil lawsuit brought on behalf of other similarly situated people who have been allegedly harmed in the same way by the same entity.

Q: How does class action litigation impact First City Credit Union and its members?
A: Class action litigation essentially puts First City Credit Union member-owners at odds with one another because member-owners are essentially suing an entity they own themselves and thus depleting the financial resources they collectively own as a whole.

Q: What are the benefits of a class action waiver?
A: A class action waiver states that a member agrees to waive the right to participate as a class representative or class member and to resolve any Covered Dispute on an individual basis and further agrees to refrain from pursuing or joining any class or collective actions in conjunction with other members or former members. By having members waive class actions, First City Credit Union and the members avoid lengthy and expensive class action lawsuits.

Q: Can I opt out of the Arbitration and Class-Action Waiver Provision?
A: Yes. You have the right to opt out of the arbitration agreement. Any election to opt-out will not impact any other terms or conditions of the Membership & Account Agreement or your relationship with us.

Q: How can I opt out?
A: The Arbitration and Class-Action Waiver Provision is effective as of November 2, 2022, unless you opt-out. For any existing First City Credit Union member as of November 11, 2022 wishing to opt out, he or she can do so by sending written notice to First City Credit Union by 30 days from October 12, 2022. The written notice for all existing or new members must include the member’s name and address as listed on the account, all account numbers, a statement of intent to opt-out, and must be signed by the member. The written notice must be sent to First City Credit Union at P.O. Box 93727, Pasadena, CA 91109-3727, or emailed to [email protected]. Notice provided in any other manner than described above or outside of the applicable opt-out period will not be effective.

Q: Do I have to do anything if I do not want to opt-out?
A: No. If you do not opt-out of the Arbitration and Class-Action Waiver Provision, the continued maintenance of your First City Credit Union account will act as your consent to the Arbitration Agreement.

If you still have questions, please call 1-800-944-2200 extension 4610