Credit union trade groups are pushing the Federal Reserve to definitely state that it has no plans to reinstate a rule that limited consumers to six transactions a month from their savings account.
When the Fed lifted the limit, known as “Regulation D,” to help consumers during the coronavirus crisis, it posted a set of “Frequently Asked Questions” saying that the board does not plan to reimpose the limit once the crisis is over.
That is not good enough, trade groups representing credit unions and banks said, in letters to the Fed.
“Credit unions considering a change to their treatment of deposit accounts will need to adjust their core systems, re-write internal policies and procedures, absorb a loss in revenue (in some cases) and likely issue notices to members,” Brian Knight, executive vice president and general counsel of the National Association of State Credit Union Supervisors told the Fed.
National Association of Federally-Insured Credit Unions President/CEO B. Dan Berger agreed that the change should be codified in regulations, adding that lifting the limit on transfers would be beneficial to credit union members. “Elimination of the transfer limit further enables credit unions to provide their members with important financial flexibility,” he wrote.
Changing the Fed policy has been a priority for credit unions for a long time, said Lance Nogle, senior director of advocacy and counsel for the Credit Union National Association. “These changes allow credit unions more flexibility in providing services to members by removing the numeric or transfer limits, which were often confusing to members,” he wrote.