Posted by Anthony Demangone
Here's one interesting angle of the credit card bill that I overlooked. While the provisions within the bill are very similar to UDAP, the reach of the bill is effectively larger. Remember, NCUA's UDAP rule only applies to federal credit unions. The FTC could write UDAP rules, but their rule-making process is much, much slower than NCUA's or the Federal Reserve's. The credit card bill, on the other hand, will apply to all issuers of credit cards once signed. And NCUA will have enforcement authority for both state and federal credit unions for its requirements.
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Each corporate credit union is required to provide a summary of its annual audit reports to its members at its annual meeting. NCUA has loosened that requirement in light of the current situation. NCUA has indicated that it will not take exception to a corporate credit union not providing that summary if the audit has not been completed before the meeting. Corporates should indicate the reason for the delay and and inform members that a copy will be provided when available. Since members of corporates are natural person members - this will affect you.
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NCUA held its monthly board meeting yesterday.
- Here's a link to the results, which include the items considered by the board.
- Here's NCUA's presser on the meeting.
In the meeting, NCUA approved one of the remaining FACT Act regulations still in limbo. (Can you believe that regulators have been issuing regs on these for 5 years now?).
NCUA Board approved a final rule implementing the accuracy and integrity and the direct dispute provisions of the FACT Act. The final rule requires furnishers, including credit unions, to establish reasonable policies and procedures for implementing the guidelines found within the new reg. It also states when a furnisher must reinvestigate disputes about the accuracy of information contained in a consumer report based on a direct request from a consumer (the direct dispute regulations).
The accuracy and integrity regulations also contain definitions of key terms such as “accuracy,” “integrity,” “direct dispute” and “furnisher” and require furnishers to establish and implement reasonable written policies and procedures regarding the accuracy and integrity of consumer information provided to a CRA. Also included are guidelines concerning the accuracy and integrity of information furnished to CRAs that furnishers must consider in developing their policies and procedures.
The final direct dispute regulations:
- set forth the circumstances under which a furnisher must reinvestigate a consumer’s direct disputes
- provide exceptions to those requirements
- detail the direct dispute address and dispute notice content requirements
- specify furnishers’ duties after receiving a direct dispute; and
- establish when a furnisher may deem a direct dispute to be frivolous or irrelevant.
Effective date: July 1, 2010. NCUA looked at other issues during the meeting, so I'd check out their presser, which is linked above.
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Updated by Steve Van Beek
Head, shoulders, knees and toes - knees and toes. No, not the song - those are just the body parts that hurt this morning. NAFCU softball had another split doubleheader last night. The NAFCU Nationals won the first game with a score of 7-4 which included a defensive stand to preserve the game. In the second game, NAFCU got down 11-3 early but clawed its way back to have the tying run on first base before falling in defeat 14-11. After an 0-2 start to the season, NAFCU has split games the past three weeks putting our record at 3-5. Stay tuned as we hunt down that .500 mark...
Another great team effort, including the Compliance Guy's first appearance (which include two line drive singles and an amazing play at first base to preserve the lead). Thanks for letting him play Mandy! Can you tell Anthony is my boss?
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Have a great long weekend, everyone. Until Tuesday, stay compliant.
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