Three Recent Final Rule Analyses from CUNA

CUNA
June 22, 2010 | COMMENTS

Clarifications to Overdraft Protection Rules Under Regulations E and DD

The Federal Reserve Board (Fed) has issued clarifications to the recent final rules amending Regulation E, the Electronic Fund Transfer Act, that prohibit credit unions and other financial institutions from charging overdraft fees for ATM and one-time debit transactions, unless the consumer consents, or “opts-in.” The Fed has also issued clarifications to the recent final rules amending Regulation DD, the Truth in Savings Act (TISA), that changed the disclosure requirements for overdraft protection plans. The Regulation DD rules do not apply to credit unions but the National Credit Union Administration has issued substantially similar rules, as required under TISA.

> Click Here for the Full Final Rule Analysis at cuna.org

FTC Final Rule on Disclosures for Non-Federally Insured Institutions

The Federal Trade Commission (FTC) issued a proposed rule in 2005 to implement provisions of the Federal Deposit Insurance Corporation Improvement Act of 1991 (FDICIA) that require disclosures for financial institutions that do not have federal deposit or share insurance. This proposal was never finalized. In 2006, Congress enacted the Financial Services Regulatory Relief Act of 2006 (FSRRA), which amended the FDICIA requirements and addressed many of the concerns that were raised in comments to the FTC in response to the 2005 proposed rule. The FTC has now issued a final rule that implements the FDICIA requirements, which incorporates the changes in the FSRRA.

> Click Here for the Full Final Rule Analysis at cuna.org

Chartering and Field of Membership (FOM): Community Credit Unions

The National Credit Union Administration (NCUA) issued a final rule on the Chartering and Field of Membership (FOM) Manual, regarding community federal credit unions.  The final rule removes the narrative application approach for establishing a “well-defined local community” (WDLC).  Specifically, an area qualifies automatically as a WDLC if it is: a single political jurisdiction; a statistical area; or a grandfathered area.  The new rule also provides new criteria for a “rural district.”  In addition, the final rule clarifies the marketing plan that must be submitted by a new or expanded community charter applicant, and the “danger of insolvency” standard for emergency mergers.

> Click Here for the Full Final Rule Analysis at cuna.org