Wednesday, October 19, 2016

Was NCUA AWOL on Navy's Improper Debt Collection Practices?

It appears that the National Credit Union Administration (NCUA) was "absent without leave" (AWOL) with respect to Navy Federal Credit Union's improper debt collection practices.

Only the Consumer Financial Protection Bureau (CFPB) issued an enforcement order about Navy's collection practices and required Navy to make restitution to members harmed by its collection practices.

However, NCUA, which is the primary safety and soundness regulator of Navy, did not take any action against Navy Federal Credit Union at this time.

In comparison, the Office of the Comptroller of the Currency issued an enforcement order against Wells Fargo over its sales practices in coordination with the CFPB.

Why didn't NCUA coordinate enforcement actions with CFPB?

Does NCUA believe that improper debt collection practices and the freezing of members electronic access to their accounts are a safety and soundness concern?

I suspect that this improper debt collection practice at Navy is not an isolated event. There are probably other credit unions that are engaged in questionable debt collection practices.

It seems to me that NCUA should make examining the debt collection practices of credit unions an important part of any consumer compliance exam.

NCUA's silence on this issue is deafening.

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