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SD Court Says Loan Lawsuit Can Be Class Action



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The South Dakota Supreme Court says a lawsuit against a Rapid City credit union and an insurance company can be handled as a class action.
    
The lawsuit alleges the Black Hills Federal Credit Union and CUNA Mutual Insurance Society improperly raised rates for insurance that makes loan payments if borrowers become disabled. The suit alleges the insurance rates were raised without sufficient notice to borrowers.
    
A trial judge ruled the lawsuit could not be handled as a class action. But the Supreme Court says there's no evidence that handling the case as a class action would harm the interests of any of the more than 4,000 borrowers involved.
    
The high court also says issues related to whether borrowers waited too long to sue can be handled in a class action.
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