Denial of Motion to Compel Arbitration Vacated by Second Circuit Due to Insufficient Record Evidence of Presentment of “Scrollwrap Agreement” to Users

Nicole Zachman brought a putative class action against the Hudson Valley Federal Credit Union (HVCU) for breach of contract and violation of the federal Electronic Fund Transfer Act, among other claims, based on HVCU’s alleged practice of collecting overdraft or insufficient funds fees on accounts that were not actually overdrawn.

HVCU moved to compel arbitration based on an arbitration provision included in the modified account agreement Zachman signed in 2019 when she opened her online account with HVCU. Zachman countered that the account agreement she signed in 2012, when she originally opened her account with HVCU, did not contain an arbitration agreement and further that she was not bound by the arbitration provision added in 2019 because she was never provided notice of its addition…

Read the complete story here.

Featured Arbitrators

View all

Read these next


Arbitration of Investor Claims in An Industry-Sponsored Forum – A Look Back at 20 Years of Lessons

This article was first published on the Securities Arbitration Alert blog, here. Introduction Industry-sponsored arbitration has long been the only option for investors who have claims against their financial advisors...

By Courtney M. Werning, David Neuman, Jorge L. Riera, Michael S. Edmiston

SCOTUS Hears Oral Argument in Coinbase

This article was first published on the Securities Arbitration Alert blog, here. The Supreme Court heard oral argument this week in Coinbase, Inc. v. Bielski, No. 22-105. As reported in SAAs 2023-11...

By George Friedman

Arbitration Coversation No. 66: Independent Arbitrator Sophie Nappert

In this episode of the Arbitration Conversation, Amy interviews Sophie Nappert, an arbitrator in independent practice who is based in London. Before becoming a full-time arbitrator she pursued a career...

By Sophie Nappert, Amy Schmitz

Find an Arbitrator