Under current National Credit Union Administration rules, negative balances need to be resolved in 45 days. In December, the board approved a proposed rule that allows credit unions to establish their own specific time limits to resolve negative balances. Credit unions argue this is good for credit unions and their members, but consumer advocacy groups and NCUA Chairman Todd Harper are not convinced.
Sen. Jack Reed (D-R.I.), Senate Banking Chairman Sherrod Brown (D-Ohio) and Senate Appropriations Chairman Patrick Leahy (D-Vt.) have introduced legislation to create a $75 billion Homeowner Assistance Fund, designed to help homeowners hit by the coronavirus crisis. The fund is targeted to prevent avoidable foreclosures, evictions and utility shutoffs. Credit union trade groups are supportive.
Democratic members of the Senate Banking Committee and House Financial Services Committee have introduced legislation to extend the 1964 Civil Rights Act to cover financial institutions. While it won’t pass in this session, it may be an indicator of Democratic goals if they win a majority in both houses of Congress.
A Consumer Financial Protection Bureau proposal to allow financial services providers and trade groups to apply for advisory opinions would help bring more certainty to the regulatory process, credit union trade groups said last week.
A coalition of consumer groups warned that the proposal would circumvent the regulatory process that is designed to protect consumers.
The Consumer Financial Protection Bureau this week agreed to extend the period for comments on how it can better enforce the Equal Credit Opportunity Act.
The original deadline was Oct. 2; the new deadline is Dec. 1.
Consumer Group Calls for Overdraft Moratorium During Pandemic; Affiliated Credit Union Only Offers Partial Waiver
Financial regulators, including the National Credit Union Administration, should “do the right thing” and prohibit banks and credit unions from charging any overdraft or insufficient fund fees during the pandemic, the Center for Responsible Lending said in a new report Wednesday.
But a credit union affiliated with the center is not following that recommendation and is only waiving insufficient fund fees for up to two items a month.