Late Call Reports Decline, But Fines Forthcoming
August 26, 2014
August 26, 2014
Second quarter call reports were due July 25, and the NCUA reported Monday that 75 federally insured credit unions were late in filing and “face potential civil money penalties.” That is a significant reduction from the 104 credit unions that missed the call report deadline in the first quarter.
“The situation continues to improve, but we’re not yet at full compliance, which is where we need to be,” NCUA Board Chairman Debbie Matz said in a press release. “It is imperative that every credit union file its call report on time.”
The NCUA expects to notify late filers of their penalties in September. The penalties are determined based on three factors: the size of the credit union, lateness in filing and the credit union’s history of violations.
Matz said that the NCUA posted a new video explaining the call report filing process and started sending out emails alerting credit unions to upcoming filing deadlines. “We are pleased that the NCUA looked internally to set up a more robust system that helps facilitate call reporting,” said Trull.
The NWCUA advocated for these changes after being contacted by two member credit unions that were initially issued fines last quarter but had compelling reasons for late filing.
“Both of the credit unions that appealed their fines contacted the Association to explain their situation,” said Trull. “The NCUA was willing to listen to the extenuating circumstances and demonstrated a willingness to listen to strong evidence-based arguments, forgiving their fines.”
Of the 84 credit unions initially hit with civil money penalties last quarter, 22 credit unions successfully appealed and had their fines expunged. Trull said that member credit unions who missed the recent filing deadline but had good reason to do so should contact the Association.
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