The Point: March 27, 2013
CUs asked to complete Association's taxation survey
As the Credit Union Association of New York advocates for the passage of priority credit union legislation in Albany, banks continue to claim that credit unions don't pay taxes. To discredit these claims, the Association is conducting a survey on statewide credit union taxation.
The survey collects information on credit union payment of 14 NYS taxes for the 2012 tax year. The survey link was e-mailed to the CEO/main contact at each member credit union last week, and the deadline for responses is April 10.
To request the survey link, contact Association SVP/General Counsel Mike Lanotte at firstname.lastname@example.org or (800) 342-9835, ext. 8236.
CFPB finalizes Credit CARD Act rule
The CFPB has issued a final rule removing the cap on fees charged prior to the opening of a consumer's new credit card account. The rule is a revision to a Regulation Z provision originally set by the Federal Reserve Board in 2011 under the Credit CARD Act.
The CARD Act limits the fees an issuer can charge in the first year a credit card account is opened to 25 percent of the person's credit limit. The Federal Reserve Board's 2011 rule applied the limitation to fees assessed prior to account opening, including application and processing fees. In July 2011, a bank filed suit and later won a preliminary injunction from a federal court. Although it did not promulgate the challenged rule, authority to implement the CARD Act transferred to the CFPB after the suit was filed. In order to resolve the litigation, the CFPB issued an April 2012 proposal to amend the rule to be consistent with the court ruling so that it no longer applies to fees charged prior to account opening.
The rule is effective upon the date of its publication on the Federal Register. For more information, view the final rule.
NCUA to host fair lending compliance webinar April 4
NCUA is hosting a webinar next week to help credit unions develop and evaluate their fair lending compliance programs. The event will take place April 4 from 1-2:30 p.m., and registration details are available online.
The webinar will provide an overview of NCUA's 2013 fair lending examination program, as well as fair lending tips and best practices. As reported last week, NCUA is launching a new fair lending examination program and has created a Fair Lending Guide for credit unions.
For more information on this initiative, view the related letter to credit unions.
CUNA Regulatory Advocacy Report (CUNA member log-in/registration required.)
CUNA Legislative Update (CUNA member log-in/registration required.)