FinCEN recently released feedback regarding the 2009 CTR Exemption Rule which took effect on January 5, 2009. The purpose of this amendment is to simplify the Designation of Exempt Persons (DOEP) process which in turn will reduce the number of CTRs filed. So has this rule assisted in reducing the amount of CTRs filed? Yes—CTRs have declined almost 12% over the 2008 to 2009 time period. The benefits of this rule are:
- Decreased cost and time in preparing and reviewing DOEPs
- Decrease cost and time in preparing CTRs,
- Increased benefits of CTRs by allowing the value of CTRs to surface for law enforcement review
FinCEN used a bifurcated process to analyze the data. The two groups were; Small-Asset-Institution and Large-Asset-Institution. With 82% of the Small-Asset-Institution population being credit unions I would say this category relates to “us.” Read More »
The FDIC recently publish the examiners procedural document they will be using to evaluate if you are in compliance with Reg GG. This document does an excellent job of explaining the nuances of the regulation as well as what you need to do to make sure you are following the regulatory requirements.
http://www.fdic.gov/news/news/financial/2010/fil10035.html
Multi-Featured Open-End Lending (MFOEL)
Note: It appears that only CUNA Mutual is requesting the following changes. If your credit union is using another MFOEL lending platform, please contact Jim Vilker with your provider’s specific changes, if required.
Three weeks ago, a few credit unions began to receive instructions from CUNA Mutual Group (CMG) regarding the requirements which Regulation Z has placed on the use of the Multi-Featured Open-End Lending (MFOEL) product line.
Last week the floodgates opened up and many of you have now begun to analyze the implications of CMG’s recommended changes. A number of changes are forthcoming regarding the advance request voucher, underwriting style, open-end plans disclosures, and last but not least the member’s periodic statement.
Although much of the buzz is around the use of CMG’s open-end program, we fully expect that other forms providers will be following suit. According to CMG, the deadline for the forms, disclosures, and underwriting guidelines changes is July 1, 2010. The deadline for the periodic statement changes takes effect with the July month-end statement run. Read More »
The massive security breach at Heartland continues to sting credit unions. MidFlorida Federal Credit Union had to issue 12,000 new debit cards this week after detecting continuing attempts to defraud their members as a result of the Heartland disaster. The total number of reissued debit cards is now 17,000 for this credit union alone. MidFlorida also incurred the expense of warning their 80,000 debit card holders to be wary of suspicious activity on their cards. Read More »
Recommendations for the Credit CARD Act
The sky is not falling, but let any more legislation like this go through Congress and things just might get a little tight…
During the last 3 months we have all been anxiously awaiting the Federal Reserve’s final interpretation of the Credit CARD Act. In the middle of January the third interpretation of the Act came through as a revision of the January 2009 proposed Regulation Z change. The proposed Unfair and Deceptive Practices Act has since been rescinded and NCUA’s version is expected to hit the skids as well in the near future. New interpretations of the regulation by compliance attorneys and subsequent advice pieces from the Federal Reserve appear on our radar almost daily.
Where does that leave us? With a new 1,155 page document to interpret, analyze, and turn into meaningful software specifications and a solid recommendation for credit unions to use in loan configurations. We have completed 100% of our review to date. We continue to receive new interpretations of the regulation such as the variable rate floor as well as allowing a grace period on partial payments.
As a resource for you, I would encourage all clients that use CU*BASE Online Credit Cards to: Read More »
Welcome to the Credit CARD Act open forum. This area is designated for credit unions to share ideas, ask questions from peers and find assistance in meeting the guidelines. We encourage you to share any disclosures or processes by sending them to lwalton@xtendcu.com. After submission the documents will be posted here for others to view and utilize.
Also, the Q&A resulting from Navigating the Credit CARD Act webinar featuring Jim Vilker will be posted here. Please take advantage of this opportunity to contribute and gain knowledge of the Credit CARD Act of 2009.
To view the presentation used during the February 5th webinar regarding the Credit CARD Act, please click below:
Navigating the Credit CARD Act
Special Guest Author: Barb Cooper, VP Professional Services
The Truth-in-Savings regulatory changes, found in the update to the NCUA Regulation 707, seemed relatively easy to understand for this first round. NCUA patterned their changes from the Federal Reserve in most respects, but not all.
A tip from Audit Link’s Jim Vilker: Credit unions are required to follow those regulations as published by the NCUA and I would caution those who believe they must try and blend the Federal Reserves Regulation with the NCUA’s. It almost never works. Keep your compliance eye on our regulatory body only. Blending these two will only lead to analysis for the sake of analysis. Read More »
News Release…
Grand Rapids, Michigan –November 4th, 2009
To comply with Red Flag requirements to monitor things like address changes, a new Red Flag monitoring feature has been added to CU*BASE. This tool provides alerts to both the credit union and the member when changes are made to a member’s personal information to provide an extra layer of security against fraudulent activity.
When changes are made to a member’s name, email address, home phone or mailing address, CU*BASE records these changes for a rolling 30 days. If configured, warning messages are presented to both the member and the credit union employee. Before credit union employees enter selected screens (such as Teller, Inquiry, and Phone Operator), Read More »
21-Day Fix on to President’s Desk; Reg Z Proposal: Timely Settlement of Estates
Posted: 29 Oct 2009 11:08 PM PDT – NAFCU Compliance
Update by Anthony Demangone 7:55 p.m., Thursday evening
I just received an email from our lobbying dynamo, Brad Thaler. Just minutes ago, the U.S. Senate passed H.R. 3606 by unanimous consent. This bill would make a technical correction to the Credit CARD Act to limit the 21-day requirements to credit cards, instead of all open-end lending. The legislation now goes to President Obama’s desk. He is expected to sign it within days.
Many thanks to all of you for your help in getting this legislation to this point. We’ll update you on any developments.
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