Dodd Seeks Delay for CUs in CARD Act Posted by AVCU on 4:45 PM

Following AVCU’s statewide CARD Act compliance teleconference today, CUNA announced two very important developments concerning relief for credit unions from the statement requirements of the 21-day rule under the new credit CARD Act as applied to open-end lending plans other than credit cards.

Senator Christopher Dodd (D-CT), Senate Banking Committee chair, sent a letter to Federal Reserve Board Chairman Bernanke, urging the Fed to allow credit unions more time to comply with the 21-day rule for open-end loans other than credit cards. In his letter, Dodd cites that "credit unions have identified legitimate implementation difficulties." He goes on to request that the Fed "allow credit unions more time to come into compliance." In addition, the Consumer Federation of America sent letters to both the Fed and Chairman Dodd seeking a delay of the August 20^th compliance date for credit unions. CUNA feels both letters are very persuasive and very useful to the credit union cause.

CUNA continues to explore litigation possibilities, should such a course of action prove necessary. Additional time for credit unions to comply also means more time to pursue a legislative fix to limit the scope of the 21-day rule to credit cards only.