Arbitration Agreement, Class Action Waiver

A mandatory arbitration provision is located within PSFCU’s Membership and Account Agreement, given to all new members at account opening.

Arbitration is a method of resolving disputes outside of court.  The arbitration process is less formal than a courtroom hearing or a trial. PSFCU’s arbitration provision allows both the member and PSFCU to resolve any legal dispute with a neutral arbitrator who reviews the evidence, listens to the parties, and then makes a binding decision. The arbitrators are usually very experienced and knowledgeable attorneys who can focus on the matter at hand instead of dealing with the strict procedural requirements of a court.

PSFCU’s core mission is to always continue improving our products and services and the overall member experience. Arbitration provides an efficient, confidential, and inexpensive means of resolving disputes and allows PSFCU to focus on our core mission. We believe that an arbitration provision benefits all of our members by increasing access to a quick and cost-effective dispute resolution process.

The members can opt-out, but they have a limited period of time to do so. New members must ensure that PSFCU receives their opt-out notice no later than 60 days after the account was opened. All existing members have 60 days after the receipt of a copy of the Membership and Account Agreement that was mailed together with Change-In-Terms.

An important part of the arbitration provision is that members are not permitted to bring or participate in a class action lawsuit against PSFCU.  PSFCU truly believes that class action lawsuits only enrich the attorneys who file them but generally provide little to no benefits to our members.

As stated in the Membership and Account Agreement, the members opt-out notice must be in writing – PSFCU will not accept opt-outs made by oral communication. There are three acceptable methods to submit the written opt-out notice:

1. By writing a letter signed by the member can be mailed to PSFCU, ATTN: Compliance Department, 9 Law Drive,  Fairfield, NJ 07004.
2. Via email to PSFCU at Opt-out@psfcu.net.
3. By filling out an Opt-out form at the PSFCU branch.

All opt-out notces must containg the following:

• A statement that “I choose to opt out of the Arbitration Agreement” or any words to that effect
• Member’s name, address, and account number(s) to which the rejection applies

They should be:

• Be signed by account owner(s)
• Be postmarked no later than 60 days from the date the account was opened or from the date of receipt of the Change in Terms Notice.

No, members must reject the provisions within 60 days from the date the account was opened or from the date they received the Change in Terms Notice.

Members ae welcome to contact the Member Service Center at 1.855.773.2848.  

A mandatory arbitration provision is located within PSFCU’s Membership and Account Agreement, given to all new members at account opening.