Second Wave of Economic Impact Payments Include Prepaid Debit Cards

As the U.S. Treasury quickly rolls out their second round of Economic Impact Payments (EIP2), approximately 8 million EIP2 payments will be issued by prepaid debit cards.

VISA Rules issued business news entitled “Clients Are Reminded of Manual Cash Disbursement Requirements for Government Payment Prepaid Cards” Within the article, VISA makes note that some cards will bear the names of two cardholders on the front, if the payment is being made to joint tax-filers.

Additionally, the Economic Impact Payment Cards may bear the names of two cardholders on the front, if the payment is being made to joint tax-filers. However, the card will only have one signature panel on the back, signed by the cardholder whose name appears first/highest on the card. Either one of the cardholders whose name is printed on the front should be permitted to make withdrawals.

Question of the Week

Q. Can the credit union require the member to sign up for an electronic repayment plan before they make the loan?

A. No. Regulation E prohibits a credit union from conditioning a loan on the member’s repayment by pre-authorized EFT, unless the credit is offered as part of an overdraft credit plan or extended to maintain a minimum balance. A credit union is permitted to offer programs that have cost-related incentives if the member agrees to enroll in a pre-authorized repayment plan.

Related Links

12 CFR 1005.10(e)

Legal Briefs

National Credit Union Administration

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NCUA’s 2021 Supervisory Priorities
The NCUA released Letter to Credit Unions 21-CU-02 which provides details on the Administrations 2021 supervisory priorities. ALLL, BSA/AML, Coronavirus Aid, Relief, and Economic Security Act, Consumer Financial Protection, Credit Risk Management, Cybersecurity, LIBOR Transition, Liquidity Risk, and Serving Hemp-Related Businesses are on the list of priorities. The Letter to Credit Unions also provided updates on the NCUA’s exam modernization initiatives.

Office of Foreign Assets Control

OFAC has updated the SDN list as of Jan. 15. The last update prior to this was Jan. 11.

Posted in Compliance News, Compliance News.