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
Regulation is the better overdraft approach CUNA
WASHINGTON (11/13/09)--The Federal Reserve Board's final rule on overdraft protection plans, which was released on Thursday, “should give Congress pause before it proceeds further with the various legislative proposals that are now pending,” according to Credit Union National Association(CUNA) President/CEO Dan Mica. The Fed rule, specifically, would require credit unions and other financial institutions to obtain consent from consumers before they could be charged overdraft fees for ATM and one-time debit transactions. The rule, which will go into effect on July 10, also requires credit unions and other financial institutions to fully disclose the overdraft services, the fees, and the consumer’s right to opt-in, and ensures that members or customers that do decide to take part in the overdraft protection service may cancel the service at any time. (See related story: Opt-in featured in Fed overdraft rules.) Sen. Christopher Dodd (D-Conn.) and Rep. Carolyn Maloney (D-N.Y.) last month each introduced bills aimed at addressing overdraft fees by prohibiting them unless the member or customer exercises the option to opt-in to the program. Dodd's legislation only requires the opt-in provisions for ATM and debit card transactions, while Maloney's bill would impose opt-in requirements for all transactions. Both pieces of legislation are awaiting committee action on their respective sides of Congress. While the Fed rule “may present compliance challenges for certain credit unions,” Mica said that the rule does not present the same challenges or restrictions that are included in either piece of legislation. Those include restrictions on the amount and frequency of overdraft fees or requirements that force financial institutions to provide same-day notification to consumers when an overdraft is paid or notification if an ATM transaction will result in an overdraft. “CUNA's position has been that a regulatory approach to these issues is far preferable than these legislative initiatives,” Mica said. CUNA is analyzing the rule, and will provide credit unions with a more in-depth explanation of how the rule could impact their business practices as soon as possible.
Other Resources

RSS





print
News Now LiveWire
.@Nussle, Cummins share #creditunion difference with Minn. biz journal http://t.co/7EZ4FdgfD9
31 minutes ago
.@cuna #GAC2015 countdown: @USTreasury 's Gerety, @CFPB 's Martinez join power-packed lineup http://t.co/nHNJ81tGbi
1 hour ago
A recent report from @TransUnion says consumers born 1981 or later made up 27% of total auto-loan originations in 2014, up 16% from 2009.
21 hours ago
.@CUNA says new House bill is "further evidence" of lawmakers' interest in how @TheNCUA uses its funds from CUs. See News Now Monday.
1 day ago
.@MECreditUnions announces winner of @YoungFreeME #SoundOff contest. @Sassquatch_Band will play Old Port Festival in June @PDD_Downtown
17 hours ago