This week, as credit union leaders from across Alabama, Florida, and Georgia traveled to Washington, D.C. for LSCU’s Hike the Hill, regulatory meetings kicked off the annual event. Credit unions met with Director of the Consumer Financial Protection Bureau (CFPB) Rohit Chopra and National Credit Union Administration (NCUA) Chairman Todd Harper and Vice Chairman Kyle Hauptman to discuss numerous issues of importance.
With the CFPB, we addressed in depth rumored discussions to expand Reg E and its financial impact on credit unions who often bear the cost of fraud, as well as non-sufficient fund and overdraft fees. Throughout the pandemic and beyond, credit unions have been making adjustments to their overdraft programs in the best interest of their members, and that was conveyed yesterday. In recognizing the credit union difference, Director Chopra noted the sincere efforts of credit unions to reach underserved communities and provide access to financial serves for those who would otherwise lack them.
With the NCUA, we discussed their recent proposed rule on Succession Planning. While LSCU and member credit unions have officially commented on the matter, these meetings were used to educate Chairman Harper and Vice Chairman Hauptman as to why issuing this information as guidance or a best practice, as opposed to a mandated rule, would be sufficient. At this time, it is unlikely that the proposed rule will advance as is. Additionally, we heavily advocated against the recently introduced Improving Cybersecurity of Credit Unions Act, which seeks to provide third party vendor exam authority to the NCUA. As the NCUA already has this authority, we argued this legislation was unnecessary.
In addition to the aforementioned topics, credit unions discussed a number of other priority issues ranging from cybersecurity to interchange to FinTech. Conversations were very effective and the credit union perspective was heard, understood, and, in some cases, agreed with.