WASHINGTON (8/10/12)--Federal credit unions can use video teller machines as service facilities both for select group additions and underserved areas, the National Credit Union Administration (NCUA) ruled in a legal opinion.
In recent meetings with the NCUA, the Credit Union National Association supported the legal interpretation.
The NCUA ruled that the machines must meet several criteria in order to comply with federal regulations. They must:
- Provide real-time, face-to-face video access to live tellers at regularly scheduled weekly hours;
- Use credit union employees or local shared branch employees as the on-screen tellers;
- Allow members to conduct all the transactions he/she could if visiting any other facility; and,
- Be in a physical location within an underserved a area or near the group being served for group additions.
A website is not considered a service facility for purposes of new membership groups, the opinion concluded.
And "an interest in a shared branching network, ATMs, and websites do not meet the criteria for a service facility in an underserved area,'' wrote NCUA Associate General Counsel Frank Kressman.
He added that the opinion "does not change the definition of service facility or affect previous opinions NCUA has issued in this regard. Rather, this simply clarifies NCUA's interpretation of the service facility portions of the Chartering Manual.''
To see the opinion letter, use the resource link below.