The Point: May 1, 2013
ATM legislation advances to Senate, Assembly floors
Bills that would eliminate burdensome ATM fee disclosure regulations have advanced to the floors of both the Senate and Assembly, bringing the priority legislation one step closer to passage.
A.6234 and S.4363 would eliminate the requirement of physical fee disclosures on ATMs and bring NYS law into conformity with the federal law signed by President Obama last December.
The Credit Union Association of New York has been advocating aggressively for passage of this legislation, as burdensome ATM fee disclosure regulations have created legal and financial issues for many credit unions. In 2012, numerous frivolous lawsuits were filed due to vandals removing the physical fee notice from ATMs and claiming non-compliance by the financial institution.
Credit unionists can help build support for the legislation by visiting the Association's Action Center and clicking the "Take Action" button.
CFPB issues final remittance transfer rule
International remittance transfer providers will be required to disclose certain fees and taxes, as well as the exchange rate that will apply to the transfer, under a final rule issued by the CFPB yesterday. The rule will take effect Oct. 28, 2013.
The rule builds on a final rule on international money transfers published by the CFPB Feb. 7, 2012, and supplemented Aug. 20, 2012. As expected, the rule does not change the exemption threshold from 100 transactions per year. Changes include:
- Disclosure of institution fees and foreign taxes: Remittance transfer providers must disclose certain fees, such as a provider's own fees and those charged by an agent of the provider or intermediary institution. The requirement that providers disclose foreign taxes or, if that institution is not the provider's agent, fees imposed by a recipient institution for receiving transfers into an account has been made optional. Providers must include, where applicable, a disclaimer that these fees and taxes may apply.
- Errors from incorrect account information: Under the final rule, when funds are deposited into the wrong account because the sender provided an incorrect account number or routing number and certain other conditions are satisfied, the provider would be required to attempt to recover the funds but would not bear the cost of funds that cannot be recovered.
For more information, view the final rule.
Reminder: Report April initiatives to Association
Last month, credit unions across the country celebrated National Financial Literacy Month, CUNA's National Credit Union Youth Week and the National Youth Saving Challenge. New York credit unions are asked to report any April initiatives to the Credit Union Association of New York via the MORE submission form.
Submissions will be included in the 2013 MORE Report and considered for additional Association communications.
Association seeking feedback on fixed assets rule
To help reduce confusion and clarify certain requirements, NCUA is proposing to amend its regulation governing FCU ownership of fixed assets. Notably, the proposed amendments do not make any substantive changes to those regulatory requirements.
To assist the Credit Union Association of New York in drafting a comment on this proposal, credit unionists are asked to complete an online survey by May 13.
Comments are due to NCUA by May 20. For more information, view NCUA's proposal.
CUNA Regulatory Advocacy Report (CUNA member log-in/registration required.)
CUNA Legislative Update (CUNA member log-in/registration required.)