CUNA Provides Reg Z / Card Act Compliance Guidance Posted by AVCU on 10:59 PM

This evening CUNA announced availability of a memo prepared by its Regulatory Affairs staff regarding open-end lending provisions that go into effect on August 20^th as mandated by the CARD Act. As heard by both CUNA and leagues, credit unions are seeking clear directions and answers on exactly how to comply with the new requirement that periodic statements be mailed 21 days before a payment due date that has to be stated on that form, unless the credit union is willing to forego late fees, reporting delinquencies, etc. Reality, however, is that the Federal Reserve comment period is not done until September, and the Fed has provided limited information in its interim final regulation. As a result, there are many unknowns have been left un-clarified by the Fed and we’re all left to make educated guesses on how to comply.

CUNA staff has talked with many credit unions about this issue. Its guidance memo reflects views on the “pros” and “cons” of compliance steps credit unions are considering, as well as a list of “frequently asked questions.” There are no answers to some key questions credit unions have - such as dealing with delinquencies - and CUNA continues to discuss such issues with Federal Reserve staff.

CUNA and leagues are continuing to pursue every possible avenue to 1) get the Fed to postpone the August 20^th effective date so that credit unions’ concerns can be fully considered, and 2) to encourage Congress to re-visit this provision of the CARD Act. Reality is that this is an uphill battle, especially in light of criticisms that the Fed has not adequately been protecting consumers. Chances will improve if credit unions get comment letters reflecting their concerns about the 21-day requirement to the Fed as soon as possible, rather than waiting until the September 21^st comment period conclusion. Questions to guide your comment letter are at the end of CUNA’s Regulatory Comment Call. Send your letter addressed to the Fed as follows:

Sandra F. Braunstein
Director – Division of Consumer and Community Affairs
20th St & Constitution Ave, NW
Washington, DC 20551

RE:	Section 106 of the Credit Card Accountability Responsibility and Disclosure Act of 2009 Docket No. R-1364

CUNA’s guidance memo is available to affiliated credit unions.