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TIS regs low income definition budget changes OKd by NCUA
ALEXANDRIA, Va. (7/30/10)--The National Credit Union Administration (NCUA) at its July open Board meeting officially adopted an interim final rule amending its Truth in Savings regulations to reflect recent clarifications that were made by the Federal Reserve (Fed). The Truth in Savings Act requires the NCUA to establish regulations substantially similar to those established by the Fed within 90 days of the effective date of the Fed’s rules. Specifically, the Fed earlier this year amended Regulations DD and E. Regulation DD addresses depository institutions' disclosure practices related to overdraft services, including balances disclosed to consumers through automated systems. Regulation E prohibits fees for overdrafts in connection with ATM and one-time debit card transactions, unless the consumer agrees or "opts-in" to these fees. The NCUA’s interim final rule will become effective 30 days after it is published in the Federal Register, but NCUA staffers said that the agency will accept comments for a 60 day period. The NCUA also made minor revisions to the technical definition of “low income members” during the meeting. The changes have no impact on the current operations of credit unions or the NCUA, according to staff. The agency’s budgetary outlook was also addressed during the open session of the meeting, with NCUA staff reporting that the NCUA reduced its total 2010 operating budget by $2 million. The NCUA estimated that $2 million in savings will be passed on to federal credit unions in the form of a reduced 2011 federal credit union operating fee. NCUA staff reported that the $2 million in net savings is drawn from $9 million in gross savings. However, those gross savings were offset by $7 million in new expenses, including funds that were spent on outside accounting consultants. Another expense accrued by the NCUA was an upcoming pro-credit union advertising campaign which will feature personal finance guru Suze Orman. The ad campaign, which will be waged via the online, broadcast, and print media, will tout the safety and soundness of credit unions, and remind both current and potential members that up to $250,000 of their deposits are fully insured by the National Credit Union Share Insurance Fund.


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