Credit Union Regulatory Guidance Including: NCUA, CFPB, FDIC, OCC, FFIEC

Samantha: Hello, this is Samantha Shares.

This episode covers America’s Credit
Unions letter from Carrie Hunt Chief

Advocacy Officer, to the National
Credit Union Administration’s Board

of Directors dated April nineteenth,
twenty twenty-four Regarding: Request

for Nondisclosure of Overdraft
and Non-Sufficient Funds Fee Data.

The following is an audio
version of that letter.

This podcast is educational
and is not legal advice.

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And now the letter.

Regarding: Request for
Nondisclosure of Overdraft and

Non-Sufficient Funds Fee Data

Dear Chairman Harper, Vice Chairman
Hauptman, and Board Member Oatska:

On behalf of America’s Credit Unions,
I am writing to urge the National

Credit Union Administration to refrain
from publicly disclosing certain data

collected in the latest Call Report.

Specifically, the revised Call Report
requires credit unions to report overdraft

and non-sufficient funds (N S F) fees.

Data on these fees should
not be released publicly.

Instead, the agencies Board should further
evaluate the legal and reputational

risks that credit unions may face and
delay the release of such information.

America’s Credit Unions is the
voice of consumers’ best option for

financial services: credit unions.

We advocate for policies that allow
the industry to effectively meet the

needs of their nearly one hundred
and forty million members nationwide.

Effective March thirty first, the
agency recently added fields to the Call

Report requiring credit unions above
1 billion dollars in assets to report

revenue from overdraft and N S F fees.

As detailed in a February letter to
the Chairman, and shared with the other

Board members, America’s Credit Unions
raised concerns regarding the process

through which these changes were made,
explaining that the agency should have

provided direct notice to all credit
unions and generally should not pursue

significant changes without first
notifying the industry of such proposed

changes at least two quarters in advance.

Subsequently, we sent a letter to the
agency’s Office of General Counsel

(O G C) requesting a legal opinion
letter regarding the applicability

of the Freedom of Information Act to
information collected and disclosed

publicly as part of the Call Report
requirements in the agencies regulations.

It is our position that the agency
should refrain from disclosing publicly

the Fee Income reported under revised
Call Report account code one hundred

and thirty one, as this information
is confidential business information

protected under the FOIA exemptions.

We maintain that this information
on overdraft and N S F fees is

exempt from a FOIA request under
FOIA Exemption 4 and therefore should

not be made public by the agency.

If the agency is releasing Call Report
data under separate authority, we

would appreciate that clarification.

Given our significant concerns with the
potential release of this information,

and the fact that the new Call Report
requirements are already effective,

I am sending this letter directly
to the entire Board urging you to

prevent the public disclosure of the
information collected under revised

Call Report account code one thirty one.

There are significant reputational risks
that are likely to quickly arise with the

public disclosure of such information.

As we have already seen following
the release of certain information on

overdraft and N S F fees charged by
California state-chartered credit unions

and banks, this information is likely to
be spun in a misleading and potentially

inaccurate way, resulting in irreparable
harm to the positive reputation credit

unions have worked so hard to achieve.

I appreciate the willingness of each
Board member to discuss this issue,

including during America’s Credit
Unions’ Governmental Affairs Conference.

As such, you are likely familiar
with our position on collecting and

releasing O D P and N S F fee data.

Given that the changes have already been
made to the Call Report, we stress the

significant ramifications that may result.

Thus, if the Board is unwilling to prevent
disclosure of this fee data indefinitely,

we urge, at a minimum, the agency to
delay such disclosure until after it has

sufficiently assessed the legal and policy
concerns with releasing such information.

To best protect the credit union system
and consumers, the NCUA should refrain

from disclosing such information publicly.

This concludes the Letter.

If your Credit union could use assistance
with your exam, reach out to Mark Treichel

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This is Samantha Shares and
we Thank you for listening.