Friday, July 20, 2018

NCUA Response to Senator About Consumer Protection Issues at CUs

In response to a written question from Senator Sherrod Brown (D - OH), National Credit Union Administration (NCUA) Chairman McWatters stated that the agency had identified and corrected numerous consumer financial protection issues at credit unions between August 2014 and June 2017.

Senator Brown asked: "During your time on the board, have NCUA supervision teams identified and corrected any consumer protection issues?

McWatters wrote that NCUA examiners had corrected many consumer financial protection issues at credit unions. McWatters further noted that "[t]he majority of Federal consumer financial protection law violations ... involved the Truth in Lending Act, the Equal Credit Opportunity Act, and the Real Estate Settlement Procedures Act."

To address consumer financial protection violations, NCUA required credit unions to revise and implement new policies and procedures, increase staff training, or impose other administrative remedies.

The question and answer were part of the June 22 hearing by the Senate Committee Banking, Housing, and Urban Affairs titled "Fostering Economic Growth: Economic Perspective."

Go to the hearing record.

Thursday, July 19, 2018

Bank and CU Trades Urge Lawmakers to Prohibit Postal Banking

Bank and credit union trade groups agree that allowing the post office to offer banking services is a bad idea.

In a July 17 letter to members of the House, bank and credit union trade groups urged support for Congressman Patrick McHenry’s (R-N.C.) amendment to the Financial Services and General Government appropriations bill that would prohibit the U.S. Postal Service from providing banking services. The bill -- along with its amendments -- is scheduled to be considered on the House floor later this week.

While stressing financial institutions’ longstanding support for the U.S. Postal Service -- and acknowledging the need for postal reform -- the letter outlined the risks of turning the postal service into the world’s largest shadow banking system. Providing banking services, the letter warned, “will be beyond the Postal Service’s core competencies, will raise a number of serious regulatory and consumer protection questions, and will present significant competitive issues for private sector entities.”

The U.S. Postal Service itself has agreed with this position, arguing that postal banking would not address its financial challenges, and would almost certainly cause it to lose money.

The letter was signed by the American Bankers Association, the Credit Union National Association, the Independent Community Bankers of America, and the National Association of Federally-Insured Credit Unions.

Read the letter.

Wednesday, July 18, 2018

Nine CUs Fined for Late Filing Their 4th Quarter 2017 Call Reports

The National Credit Union Administration announced that nine federally insured credit unions have agreed to pay civil monetary penalties for filing late Call Reports in the fourth quarter of 2017.

NCUA noted that 17 credit unions were late in filing their Call Reports. Six credit unions were not fined because of mitigating circumstances and two credit unions requested and were granted a waiver.

Fines ranged from $302 to $471 and totaled $3,109. The median fine was $315.

Three factors were used to determine the amount of the fine: the credit union's asset size, its Call Report filing history, and the length of the filing delay.

All nine credit unions had been late in a previous quarter.

Read the press release.

Capital Credit Union Buys Naming Rights to New Stadium

Capital Credit Union (Green Bay, WI) bought the naming rights to a new $10 million multi-purpose stadium in Ashwaubenon (WI).

The stadium will be used for baseball, soccer, concerts and community activities.

The new stadium will be called Capital Credit Union Park.

The price for the naming rights agreement was not disclosed.

Such naming right deals by credit unions are becoming more common.

But is this the best use of the generous taxpayer subsidy that credit unions receive? How does this fulfill the public policy mission of credit unions to serve people of modest means?

Read the story.

Idaho Central CU Pays $1 Million for Naming Rights to Indian Creek Plaza's Main Stage

Idaho Central Credit Union (Chubbuck, ID) and Destination Caldwell entered into a 15-year, $1 million naming and advertising agreement for the Indian Creek Plaza’s main stage.

The Caldwell City (ID) Council authorized the agreement unanimously at a special July 12 meeting.

The $1 million will be paid in a lump sum by August 1.

Idaho Central Credit Union’s name and associated trademarks and logo will be used as part of the plaza’s main stage, according to the agreement.

Read the story.

Tuesday, July 17, 2018

Teachers CU Pays $300,000 for Naming Rights to High School Stadium

Teachers Credit Union (South Bend, IN) bought the naming rights to Schools Field.

The credit union will pay $30,000 per year for 10 years for the naming rights to the 92-year stadium.

The new stadium will be called TCU Schools Field.

South Bend Community Schools Corporation unanimously approved the naming rights deal.

The naming rights deal was part of a new academic and athletic partnership between South Bend Community Schools Corporation and Teachers Credit Union.

Read the story.

NCUA to Distribute Almost $736 Million in Share Insurance Fund Dividends Next Week

The National Credit Union Administration announced on July 17 that it will pay next week $735.7 million in dividends from the National Credit Union Share Insurance Fund (NCUSIF) to over 5,700 credit unions.

If a federally insured credit union that filed a Call Report for at least one quarterly period in 2017, it will be eligible for a pro rata distribution.

Statements will be mailed this week to dividend recipients with the amount to be received.

This will be the largest distribution from the NCUSIF in its history.

Read the press release.

The content is provided for educational purposes only, with the understanding that neither the authors, contributors, nor the publishers of this site are engaged in rendering legal, accounting or other expert or professional services. If legal or other expert assistance is required, the services of a competent professional should be sought.

Comments appearing in response to articles appearing on this site do not necessarily reflect the views of the ABA. ABA makes no representations regarding the truth or accuracy of commentary or opinions that may be posted in response to the articles that appear on this website.

The inclusion herein of any link to a website, either in the text of an article or in a comment, does not denote any approval, sponsorship, or endorsement by the ABA, and ABA is not responsible for the content or opinions expressed on those linked websites or related commentary. This content is not licensed to third parties sites and is not affiliated with any third party site. Any reference to the author or this content on any third party site on the Internet is not authorized by the ABA.

It is the policy of the American Bankers Association to comply fully with all antitrust laws. Certain discussions should be considered off-limits, including those that contain competitively sensitive data such as price and cost information, or statements that could be construed as reflecting an attempt or desire to control or influence a particular market or markets. Future pricing or other prospective competitive information should never be shared.