WASHINGTON (5/4/10)--The Credit Union National Association (CUNA) is alerting credit union management to give appropriate time and attention to assuring timely compliance with new Federal Reserve Board changes that implement the first changes in a quarter of a century to Truth-in-Lending (TIL) Act rules. In the May 3 issue of Credit Union NewsWatch
, CUNA warns of five ugly “Untruths” about new TIL rules. Stating five myths, misunderstandings and misperceptions about the new rules, CUNA then blasts those away with clear, concise, and accurate information. The “UNtruths” tackled in the article include:
* Untruth: Our data processor and forms supplier are taking care of everything that needs to be done by July 1 on the new Truth in Lending changes; * Untruth: The Federal Reserve Board didn’t eliminate multi-featured open-end lending (MFOEL), so my credit union doesn’t have to make any changes in our MFOEL program; * Untruth: We can make an automobile loan a closed-end sub-account under our open-end lending program; Untruth: We can just rely on our credit card vendor to handle all the Reg Z compliance requirements of the new Credit CARD rules; and Untruth: Once we get through next couple of months, things will settle down with Truth in Lending.
CUNA Senior Compliance Counsel Mike McLain reminds that in less than two months—by July 1—credit unions must make sure that open-end loans comply with the comprehensive changes made to account-opening disclosures, periodic statements, change-in-terms disclosures, and advertising, as well as credit card applications and solicitations. The article includes a box with extensive additional resources. Use the link below to access the article and resources.