Written by Steve Van Beek
Pew Charitable Trusts Report. If you haven't seen the recent Pew Report - Checks and Balances: Measuring checking accounts' safety and transparency - be sure to take a look. Pew has numerous recommendations to the CFPB, including:
- Require depository institutions to provide information about checking account terms, conditions, and fees in a uniform, concise, easy-to-read format that would be available online and in financial institutions' branches.
- Require depository institutions to provide accountholders with clear, comprehensive terms and pricing information for all available overdraft options when a customer is considering opting in to a plan.
- Require that overdraft penalty fees be reasonable and proportional to the institution's costs in providing the overdraft loan or to the size of the violation.
- Require depository institutions to post deposits and withdrawals in a fully disclosed, objective and neutral manner, such as in chronological order, that does not maximize overdraft fees.
While these are recommendations at this point, there is a definite possibility the CFPB moves on amending checking account disclosures in the next year. At a minimum, be sure to pass this report along to others at your credit union - paying special attention to the suggested Model Disclosure Box on page 9 of the PDF (page 7 of the report). Would your forms provider be able to recreate that disclosure? How long would it take? At what cost?
While Pew's Report looks at 36 of the 50 largest banks, the recommended changes are meant for all depository institutions - including credit unions.
Nashville, Tennessee. NAFCU's 2013 Regulatory Compliance Seminar will be held October 22-25 in Nashville, Tennessee. Details are now available, including:
- Featured Presentation - What Does Having a Culture of Compliance Mean to Your Credit Union?
We hear again and again about the importance of fostering a culture of compliance. What exactly does that mean? Why should you invest the time and effort into creating such a culture? Join experts David A. Reed and Rusty Vellek to learn how to know if you have achieved a culture of compliance at your credit union. Also explore how to gain buy-in from all departments to support the notion of a culture of compliance.
We hope to see you there! Be sure to sign-up by August 23 to Save $100!