WASHINGTON (10/19/11)--The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) authorized the U.S. Treasury Department to establish a multi-year program of grants, cooperative agreements, financial agency agreements, and similar undertakings to promote initiatives aimed at enabling low- and moderate-income individuals to establish accounts in a federally insured depository institution, including federally insured credit unions. The Credit Union National Association (CUNA) is asking credit unions to comment on what types of program initiatives Treasury should promote. The relevant section of Dodd Frank also authorizes recipients of the grants to provide low- and moderate-income individuals with small-dollar amount loans and financial education and counseling related to the use and management of such accounts. Treasury is currently developing implementation rules and is seeking comment until Nov. 14. CUNA asks credit unions to send comment its way by Nov. 1, on such issues as:
* What types of program initiatives should Treasury promote to enable low- and moderate-income individuals to establish accounts in federally insured depository institutions? * How should Treasury evaluate whether an account in a federally insured depository institution is “appropriate” to meet the financial needs of low- and moderate-income individuals? What account features and terms are “reasonable” to meet the financial needs of such individuals in an appropriate manner? * What level of financial access should be the desired outcome of such initiatives? What other measures of success of the initiatives should be considered? * How can Treasury enable, enhance and assist local, regional, and state start-up collaborations that incorporate low- and moderate-income individuals into the financial mainstream? How can existing collaborations be supported to expand or improve their financial access efforts? How could meaningful innovations be fostered by these collaborations?
Use the resource link below to read CUNA’s complete Comment Call.