Links in “Credit Unions”

One of the most arduous tasks in any credit union is keeping policies up to date. Here’s a quick and easy way to ensure that key policy information is updated on a timely basis and to ensure that policies reflect actual credit union practices. [8/13/15]

The CFPB issued a report that determined that mandatory arbitration clauses harm consumers. However, George Mason University has taken that report to task by finding that its comparison of class action settlements to arbitration awards was not the appropriate methodology to use and that, in fact, consumers fare better through arbitration than through class action settlements. [8/13/15]

It’s hard to believe, but for years Citizen’s Bank had a policy that it would keep any discrepancies between the amount noted on the customer’s deposit ticket and the actual amount of the deposit based on the total of the cash and checks for small transactions. Over the years those small discrepancies amounted to about $11 million dollars in additional revenue to the bank. Now the CFPB says, “Give it back!” [8/13/15]

With the October 1 deadline for changes to the liability provisions for cards without EMV technology fast approaching, many credit unions are scrambling to draft procedures and to develop informational materials for their members.  This article identifies best practices to ensure that your team is ready for the change and how best to communicate the changes to your members. [8/12/15]

In the past two years credit unions’ share of the residential mortgage market has increased from 7% to 11%.  Last year alone, mortgage originations for credit unions increased by over 35%, compared with just a 15% increase for the rest of the market. [8/12/15]

The NCUA says that it has posted over 20 documents concerning its OTR methodology on its website and that the documents it has refused to provide to NASCUS are internal memos between the General Counsel’s office and the Board. NCUA Board member Mark McWatters agrees with NASCUS that these documents should be made public and that the OTR process should be subject to public comment. [8/12/15]

The last remaining issue in the merchants’ suit against the Federal Reserve’s debit interchange rule concerns why the Fed determined that transaction monitoring costs fall outside of the “fraud prevention” adjustment to interchange fees. Yesterday, the Fed sent a letter to the judge that explained transaction monitoring costs are akin to the costs of equipment, software or labor when calculating the interchange fee standard and that since these types of costs are necessary to every transaction they should be included in the calculation. [8/11/15]

CUNA has published a comprehensive analysis of the recent amendments to the Military Lending Act, which significantly expands the coverage of the Act and revises its APR calculation. The changes are effective October 1, 2015 and compliance is mandatory by October 3, 2016. [8/11/15]

The NAFCU is urging the NCUA to allow credit unions to submit anonymous self-assessments under the voluntary joint policy statement on diversity standards. The NAFCU noted that the voluntary self-assessments are currently accessible to the public through the Freedom of Information Act, which could adversely affect participation. [8/11/15]

According to NCUA, the methodology it uses to calculate the overhead transfer rate (OTR) is “attorney work product” and, therefore, is privileged, confidential and exempt from the Freedom of Information Act. At least, that’s what NCUA General Counsel Mike McKenna said to a request from NASCUS for all documents relative to the OTR. [8/11/15]