WASHINGTON (11/24/08)--The Credit Union National Association (CUNA) supports the goal of a National Credit Union Administration (NCUA) proposal to reduce burdens of the current share insurance sign requirements for shared branch networks, but urges even greater flexibility for credit unions. Currently, for tellers accepting share deposits for both federally insured and nonfederally insured credit unions, there must be a second sign adjacent to the official NCUA insurance sign. The second sign must list each federally insured credit union served by the teller, along with a statement that only those credit unions are federally insured. The proposed rule will replace the required list of credit unions with a general statement that not all of the credit unions served by the teller are federally insured and members should contact their credit union for further information. In a Nov. 21 comment letter to the agency, CUNA such additional flexibility as:
* Allowing credit unions to post a single sign in a conspicuous location in the lobby that would include the general statement that not all of the credit unions served by the teller are federally insured and members should contact their credit union for further information; or, alternatively, * Instead of the second sign, credit unions that provide service to members of other credit unions could have the option of providing a similar disclosure that the teller would hand out to these nonmembers. Either of these alternatives should serve the goal of sufficiently informing members of their insurance coverage, especially considering that very few consumers are members of nonfederally insured credit unions.
Also, CUNA wrote, a federally insured credit union that provides service to members of other credit unions should have the option of indicating either on the sign or any separate disclosure that it is federally insured. “This should alleviate concerns from members who may not be aware of the insurance status or may believe the status has changed when they read these new signs or disclosures. This is especially important in the current environment in which many consumers are concerned about the safety of the money they have in financial institutions,” the CUNA letter said.