Creating the opportunity and positive environment for credit unions to serve members today and in the future isn’t something that happens by accident, it’s part of a collective nationwide strategy involving credit unions, Leagues and CUNA. And, it’s not something that happens solely through legislation in Congress – it is pursued in a variety of avenues by many. Some recent efforts include:
- Addressing Legal Issues: In addition to the efforts surrounding the ADA website demand letters that have hit credit unions nationwide, there’s been lengthy legal work between NCUA and the American Bankers Association regarding field of membership. Just this week on June 5th the ABA filed a cross-appeal in response to NCUA’s appeal of the U.S. District Court ruling regarding NCUA’s field-of-membership (FOM) rule. CUNA strongly supports NCUA’s appeal and further believes the court erred in its finding that the agency overstepped its statutory authority with regard to the combined statistical area approach and the definition of rural district. For some background, NCUA finalized its FOM modernization rule in October 2016 and the ABA sued the agency over the rule in December 2016. And in March, the court’s ruling declared provisions that automatically qualify a combined statistical area (CSA) with fewer than 2.5 million people to be a local community and increase to one million people the population limit for rural districts to exceed the NCUA’s statutory authority. Stay tuned!
- Engaging Regulatory Bodies: Outside of the regular interactions credit unions have with NCUA and the Department of Banking and Finance, credit unions have also been engaged with the Bureau of Consumer Financial Protection to urge them to tailor common-sense regulatory reform on the rulemaking process the agency has today. Through a collaborative effort with credit unions, CUNA submitted a white paper on May 29th to the Bureau to help ease the impact felt at credit unions and help them help their members.
- Identifying Trends that Could Impact: In late May, CUNA shared that they were aware of some website/social media ads that appear to be sponsored by a class action law firm inviting credit union members to contact them if they have been charged an overdraft or non-sufficient funds fee in connection with the use of a debit card. CUNA believes the firm may be investigating possible violations of regulatory requirements, such as disclosures, related to the provision of overdraft services and urged all credit unions to ensure their services are fully compliant.
- Continuing Efforts with Congress on Issues: On May 24th the Senate Banking Committee held a hearing on cybersecurity and the risks to financial institutions. Prior to the hearing, CUNA sent a letter to Chairman Crapo and Ranking Member Brown highlighting credit unions’ role in protecting member and consumer information, the strict data security requirements, and how often financial institutions become financially responsible for other industries’ lack of effort.
GCUA senior staff will be traveling to Washington, D.C., later this month to address many of the above items and more to help urge progress along for credit unions and the members they serve as a part of the collective efforts by the industry nationwide, and credit unions will be traveling to D.C. at the Hike the Hill with Georgia members of Congress in the fall.
