Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

Washington
Fed CARD Act approach needs changes CUNA
WASHINGTON (11/23/09)—The Credit Union National Association (CUNA) strongly endorsed part of a proposed Federal Reserve Regulation Z (Reg Z) rule that would clearly limit minimum payment warning disclosures to credit cards by recognizing the provision should not apply to other types of credit in which these minimum payment warnings were not intended. However, in a recent comment letter CUNA expressed significant opposition to other portions of the Fed’s plan. With regard to the minimum payment warning provisions, CUNA said the proposal would require creditors to indicate on periodic statement the amount a consumer could save by paying the balance in 36 months, as compared to only making the minimum payments. CUNA opposes this requirement and believes it would not provide meaningful information to a borrower because the factors that comprise this calculation will constantly change. Overall, the Fed proposal would implement provisions of the Credit Card Accountability, Responsibility, and Disclosure Act of 2009 (CARD Act) that go into effect Feb. 22, 2010. CUNA told the Fed it strongly opposes any agency consideration to set a February 22, 2010 effective date, instead of the current July 1, 2010, for provisions of the Reg Z rules issued earlier this year that are not directly related to these CARD Act rules. “It should be the credit union’s decision as to whether it is feasible or desirable to comply with certain of these Regulation Z provisions prior to July 1, based on its own timetable and resources,” wrote CUNA Senior Assistant General Counsel Jeffrey Bloch. Also, creditors would be required to maintain a toll-free telephone number for consumers seeking to obtain information on credit counseling agencies Creditors would be permitted to use information obtained from the website of the U.S Trustees Office or a relevant bankruptcy administrator. “We believe the preferable approach for both consumers and creditors will be to allow creditors to disclose this website address on the periodic statement, in lieu of the toll-free telephone number,” the CUNA letter recommended. Use the resource link below to read more CUNA comments on the Reg Z plan.
Other Resources

RSS





print
News Now LiveWire
.@TheNCUA recieved 2,167 comment letters on #RBC2 proposal, as of this morning. http://t.co/ijPFHItc8J
15 minutes ago
.@TheKCUA's CUlead gets close up with co-ops http://t.co/r3gxAxx4pI #NewsNow
26 minutes ago
.@NYCUAtweets in Albany today/Wed for #StateGAC
36 minutes ago
#RBC2: When is final draft on the horizon? See #NewsNow http://t.co/FoiXb48Dqh
1 hour ago
About 1 in 5 #CUs offer credit-building loans,@SchenkMike @CUNA vice president of economics and statistics, told @CreditCardsCom
16 hours ago