NWCUA Regulatory Advocacy Update: CFPB Extends Deadline for Overdraft Input
The weekly Regulatory Advocacy Update outlines the NWCUA’s efforts to reduce the regulatory burden on credit unions and protect the larger movement. Included here are updates on the CFPB’s overdraft input initiative and proposal to revise Reg Z.
April 26, 2012
CFPB Extends Deadline for Overdraft Input
The Consumer Financial Protection Bureau (CFPB) has changed the deadline for input on overdraft protection plans and their impact on consumers, extending the deadline by 60 days to June 29.
The CFPB is seeking input in four specific areas:
- Transaction re-ordering that increases consumer costs
- Missing or confusing information
- Misleading marketing materials
- Disproportionate impact on low-income and young consumers
Read more about the CFPB request for information here.
“It is essential that credit unions weigh in on this matter to help ensure that the CFPB does not begin regulating these fees,” said Jaycee Winn, Northwest Credit Union Association (NWCUA) director of regulatory advocacy. “This extension should give credit unions ample time to collect input and put together materials. Your input will be invaluable in developing the Association response.”
To weigh in on this issue, click here.
CFPB Issues Proposal to Revise Regulation Z Limits
The CFPB is proposing to amend Regulation Z, the Truth in Lending Act, in regards to credit card fee caps. The regulation currently caps fees at 25 percent of the card limit during the first year and prior to the card opening. However, because of litigation, that limit has not been applied to “prior to account opening.” The CFPB proposal would limit the 25 percent only to the first year after the account has been opened.
Comments are due to the CFPB June 11.
Read the full proposal here.
Click here to offer comments to be included in the Association comments.
NCUA Opens Registration for Region V Listening Session in Denver
National Credit Union Administration (NCUA) Chairman Debbie Matz is hosting “listening sessions” throughout the country.
“What credit unions have to say is important,” Matz said. “Sometimes it helps to discuss issues face-to-face. We want to hear directly from credit union officials and volunteers about how we can improve our exam process, how we can reduce or streamline our regulations, and anything else that’s on your mind.”
The Region V listening session will be held July 31 in Denver, Colo., from 1 p.m. to 4 p.m. at the Four Seasons Hotel.
“This is a great opportunity for credit unions to bring issues directly to Matz’ attention and hear her response,” Winn said. “We would encourage anyone considering attending the event to let the Association know so that we can help coordinate.”
The NWCUA Regulatory Advocacy team works with state and federal regulators to help reduce the regulatory burden on credit unions and protect the credit union movement. The Association encourages members to participate in the regulatory process. If you have any questions on these or any regulatory issues, please contact Director of Regulatory Advocacy Jaycee Winn at email@example.com, or at 800.995.9064 x209.