League Notes Concerns With NCUA Plan to Collect Overdraft, NSF Info From Large CUs

Following a speech today at the Brookings Institution, National Credit Union Administration Chairman Todd Harper announced that the agency will soon require credit unions with more than $1 billion in assets to report data on both overdraft and nonsufficient funds fees separately to the NCUA. Read our REGular blog post for insights.

Although not part of the Chairman’s prepared remarks, the reporting requirement was reported today in American Banker.

“Credit unions have a long track record when it comes to overdraft and nonsufficient fees,” said League Chief Advocacy Officer JT Blau. “Credit unions have responsible programs that provide members with a valued service at a reasonable cost. We know, too, that these services carry risk, require back-office effort on the part of credit unions, and can be a meaningful deterrent that keeps members out of financial trouble. This signal from the agency adds to the legislative and regulatory headwinds credit unions are fighting when it comes to non-interest income. We continue to advocate on this critical issue with the NCUA, CFPB, and with Congress.”

Your League reached out to the office of Chairman Harper for details on the proposed reporting requirements.

The NCUA is likely to collect the data by amending the call report through the Paperwork Reduction Act. There should be a notice and comment opportunity as part of the process, similar to recent call report modernization. However, amending the call report does not fall under the requirements of the Administrative Procedures Act, so no formal rulemaking would be required to implement such a change.