Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
Compliance Respond quickly to opt-in requests
WASHINGTON (9/20/10)--In the event that a credit union member elects to revoke his or her overdraft opt-in status, the Credit Union National Association (CUNA) has recommended that credit unions react by honoring this request “as soon as realistically possible.” In September’s Compliance Challenge, CUNA said that Regulation E specifically states that credit unions (and other financial institutions) must implement an opt-in revocation request “as soon as reasonably practicable.” The Fed did not prescribe a specific period of time for the credit union to honor the member’s revocation request. That's because “the appropriate time period may depend on a number of variables, including the method used by the consumer to communicate the revocation request (for example, in writing or orally) and the channel by which the request is received (for example, if a consumer sends a written request to an address specifically designated to receive consumer opt-in and revocation requests),’” CUNA added. Opt-in requests are effective until a member/customer revokes opt-in consent, or the financial institution no longer provides the service. The Compliance Challenge also covered the notifications that credit unions must provide to members that opt-in to overdraft programs. According to CUNA, the Federal Reserve determined that requiring “subsequent notice” of a member’s overdraft status “is unnecessary when the consumer has affirmatively elected to enroll in the overdraft service and ... receives a record of their right to revoke their opt-in.” Credit unions that simply provide written or, in some cases, electronic overdraft program consent forms to their members, and confirm that consent with their members, are in compliance with the newly established overdraft rules. For more of CUNA’s September Compliance Challenge, use the resource link.


RSS print
News Now LiveWire
Large CU stress testing on the agenda for the April @theNCUA open meeting http://t.co/2TUcnmCmPi
10 hours ago
#FinancialLiteracyMonth Test your college financial aid knowledge @nasfaa http://t.co/xgrDmHaw8W
18 hours ago
Join @theNCUA #NCUAchat with @KenWortheyJr on April 23 from 11am to 12pm EST http://t.co/TnNmfFh4Nl #FinancialLiteracyMonth
20 hours ago
Maine's patent troll bill has become law. Read more in Monday in @NewsNowLiveWire
22 hours ago
Wash. DFI discusses serving legal marijuana businesses with @NWCUA http://t.co/3kw79HJUYF
23 hours ago