2000 CUNA Comment Letters

NCUA's Proposed Rule on the Fair Credit Reporting Act
(December 22, 2000)
CUNA expresses concerns regarding the impact of the proposed Fair Credit Reporting Act (FCRA) rule on the privacy notices that credit unions need to send to members before July 1, 2001. These concerns include the effective date of the FCRA rule, the definitions of "transactions" and "experiences", the language and format of the FCRA notices, and the ability to share credit information for data processing purposes.

Insurance and Regulation of Credit Unions' Foreign Branches
(November 13, 2000)
CUNA comments on the NCUA's Notice of Proposed Rulemaking regarding NCUA's role in insuring and regulating state chartered credit unions that branch outside of the United States.

Proposed Revisions to Call Report (Form 5300)
(October 2, 2000)
CUNA offers several suggestions regarding the proposed revisions to the Call Report.

Proposed Field of Membership Changes Other Than the CAP Proposal
(August 16, 2000)
CUNA's comment letter is very supportive of NCUA's overall efforts to improve these field of membership policies and procedures, which were included along with the CAP proposal that CUNA opposes in a separate comment letter. CUNA offers several recommendations for improvements.

Proposed Rule on Guidelines for Safeguarding Member Information
(August 14, 2000)
CUNA generally supports the proposed rule regarding security programs in federally-insured credit unions but opposes most of NCUA's suggestions for expanding the requirements further. These suggestions are not incorporated in the proposed rule but NCUA may include them in the final rule.

Proposed Rule on the Privacy Act
(August 11, 2000)
CUNA supports the proposed changes to NCUA's rules under the Privacy Act, which will coordinate the public disclosure procedures between the Privacy Act and the Freedom of Information Act.

Proposed Community Action Plan
(August 7, 2000)
Few proposals from NCUA have received the overwhelmingly negative response from the credit union system that the CAP proposal has garnered. CUNA finds that the proposal is unnecessary and NCUA's authority to regulate in this instance is at best highly questionable. CUNA urges the Board to drop the proposal.

CUNA's Letter to NCUA Requesting Comment Period Extension
(June 28, 2000)
CUNA requests an extension of the comment period for the CAP proposal and the other amendments to the chartering and field of membership manual.

CUNA's Letter to NCUA Regarding Privacy 5/30/00
(May 31, 2000)
CUNA urges rescission of privacy amendment that will require notices to co-borrowers and loan guarantors.

CUNA's letter to NCUA regarding Reg-Flex Proposal
(May 22, 2000)
CUNA's comment letter on NCUA's Reg-Flex proposal strongly supports the proposal and offers twenty recommendations for enhancing Reg-Flex to provide more meaningful regulatory relief for federal credit unions.

CUNA's Letter to NCUA Regarding Privacy 5/18/00
(May 18, 2000)
CUNA urges rescission of privacy amendment that will require notices to co-borrowers and loan guarantors.

Dan Mica sends letter to NCUA Board Members regarding the sending of privacy notices to co-borrowers and guarantors
(May 8, 2000)

Prompt Corrective Action
(April 18, 2000)
CUNA urges a number of changes to NCUA's complex PCA proposal. This is a pdf file.

NCUA's Proposed Rule on Financial Assets and Collateralized Public Funds
(April 4, 2000)
CUNA supports the proposed rule that will: 1) ensure that property transferred by a federally- insured credit union as part of a securitization or participation will not be reclaimed by the NCUA Board, when acting as a conservator or liquidating agent; and 2) ensure that the NCUA Board, when acting as conservator or liquidating agent, will not avoid a security interest in collateral for public funds deposited in federally-insured credit unions solely because the collateral was not acquired contemporaneously with the execution of the security agreement or because the collateral was changed.

NCUA's Proposed Rule on Privacy (Part 716)
(March 31, 2000)
CUNA expresses concerns regarding the impact of the proposed privacy rule, including the need for model or sample disclosures, the providing of notices to joint accountholders, the treatment of CUSOs, and the need to extend the required compliance date. This is a pdf file.

Incidental Powers For Federal Credit Unions
(February 23, 2000)
CUNA strongly supports expanded incidental powers for federal credit unions and also recommends that the NCUA Board consider whether it is necessary to continue the concept of "group purchasing."

Chartering and Field of Membership Manual for Federal Credit Unions
(February 22, 2000)
CUNA Urges Improvements in FOM Expansion Process.

Proposed Rule - Share Insurance (Part 745a)
(January 31, 2000)
CUNA supports NCUA's proposed amendments to share insurance coverage, except those amendments that reduce insurance coverage for members.

RE: Interim Final Rule - Truth in Savings
(January 28, 2000)
CUNA supports electronic delivery of periodic statements if a member agrees and asks if initial consent can be electronic.

Federal Reserve's Proposed Revision to Regulation E - Official Staff Commentary
(August 31, 2000)
CUNA supports the proposed application of Regulation E to bill-payment programs in which a consumer initiates payments via computer, to the fees for re-presented checks, to "screen scrapers", and to Point of Sale (POS) check conversion programs where the consumer retains the check. CUNA urges the Board to meet with stakeholders before determining whether "financial institution-as-keeper" and "lockbox" check conversion programs should also be covered by Regulation E.

Federal Reserve's Proposed Revision of Regulation E - Disclosure of ATM Fees
(August 18, 2000)
CUNA is generally supportive of the proposed rule requiring disclosure of ATM fees that are imposed on consumers who hold accounts at other financial institutions. However, CUNA does not believe it is appropriate to require the financial institution holding the consumer's account to include in the initial ATM service disclosures to the consumer a notice regarding network fees.

Federal Reserve's Modification of ACH Deposit Deadlines and Pricing Practices
(July 25, 2000)
CUNA supports the proposed deposit deadline changes but opposes any changes to the Federal Reserve's ACH price structure that could result in increased fees to depository institutions.

Federal Reserve Board's Regulation Z Proposal on Credit Card Solicitations.
(July 18, 2000)
CUNA generally supports the proposed rule, with specific suggestions on placement of key information regarding rates and fees. CUNA also requests changes so that lenders are only required to deliver or transmit information in certain type sizes, especially in an electronic context, and should not be responsible for how this information appears on a consumer's computer screen.

Federal Reserve Board's Payments System Development Committee
(March 31, 2000)
CUNA asks the Federal Reserve to include credit unions input in the review of the payments system conducted by the Fed's Payments System Development Committee.

Federal Reserve Board's Proposed Rule on Privacy
(March 31, 2000)
The Federal Reserve Board should provide model disclosures or sample notices as well as more information about the definition of "financial institution" and "financial products and services" and updates as these definitions change over time.

Proposed Revisions to the Regulation Z Commentary Regarding Payday Loans
(January 10, 2000)
CUNA supports revisions to clarify that payday loans are covered under Regulation Z.

Proposed Changes to ACH Services
(January 6, 2000)
CUNA expresses concerns over proposed changes to ACH services and seeks additional opportunities to comment on pricing models.

Proposed Revision to NACHA's PPD Accounts Receivable Truncated Check Debit Entries Pilot
(August 28,2000)
CUNA generally supports the revisions to the pilot allowing a merchant to convert a check that the merchant has received through the mail into an Automated Clearing House (ACH) debit. The proposed revisions would extend the current pilot, eliminate the $2,500 limit on the value of eligible items, and amend the return timeframe. CUNA restates its concerns with the pilot that remain unaddressed in this proposed revision.

Letter to NACHA regarding Point-of-Purchase Truncated Check Debit Entries
(July 31, 2000)
CUNA has serious concerns but generally supports this pilot in which the merchant collects a written authorization and a completed, signed check from the consumer. The merchant then uses a MICR reader to obtain the consumer's routing and account numbers, the check is stamped void, and an ACH item is created to debit the consumer's bank account.

CUNA's Letter to NACHA regarding Payment for Goods and Services Via Telephone-Initiated Debit Entries
(July 31, 2000)
Overall, CUNA supports the rule to allow consumers to pay for goods and services authorized/initiated over the telephone. Under the rule, the consumer would provide oral authorization and appropriate financial institution routing number and account number to the merchant over the telephone. The merchant would then initiate a single-entry ACH debit to the consumers account in order to collect payment.

CUNA's Letter to NACHA regarding New Internet Pilot
(July 10, 2000)
CUNA supports NACHA's proposed pilot to allow consumers to pay for goods purchased over the Internet with ACH debits because it addresses the main concerns to credit unions in an Internet-initiated transaction - the security and authenticity of the data transmitted through the ACH system.

ACH Network Quality Survey
(March 15, 2000)
The Credit Union National Association (CUNA) is pleased to comment on the ACH Network Quality Survey.

Reduced Time Frame for Corrected Returns
(February 11, 2000)
CUNA supports a shorter, two-day time for receiving institutions to return dishonored returns.

Proposed Merchant-As-Keeper Automated Clearing House Pilot
(February 11, 2000)
CUNA urges NACHA to address CUNA's concerns before introduction of this pilot.

Community Development Financial Institutions (CDFI) Revised Interim Rule (12 CFR Part 1805)
(January 14, 2000)
CUNA supports CDFI program and seeks clarification to ensure credit union participation.

Announcement 2000-72: Proposed Revenue Ruling Regarding Reporting and Disclosure Provisions for 527 Organizations
(September 25, 2000)
CUNA comments on an IRS proposed revenue ruling regarding reporting and disclosure provisions for Section 527 Organizations. CUNA is concerned that the proposal, as it relates particularly to state and local political committees, does not take into account the fact that these entities are already highly regulated by their local jurisdictions. CUNA is also concerned about the burden such duplicative reporting puts on state credit union league PACs. CUNA believes that the IRS can ease these burdens without jeopardizing its statutory mandate.

FTC's Proposed Rule on Privacy
(March 31, 2000)
Although FTC's privacy rule applies to nonfederally insured credit unions, CUNA requests that these credit unions should be allowed to follow NCUA's rule so that there is consistency among all credit unions. This is a pdf file.

Use of the Internet for Campaign Activity
(January 4, 2000)
CUNA urges FTC to adopt flexible approach when regulating the Internet for fundraising activities and partisan communications.

Draft Electronic Mortgage Guidelines
(December 8, 2000)
CUNA supports Freddie Mac's efforts to develop guidelines for electronic mortgages that will be offered for sale to Freddie Mac. CUNA offers suggestions regarding how to determine the intent to sign an electronic document, the symbol or process to be used as an electronic signature, how to determine the identity of the signer, and how to maintain document access as technology changes over time.

Project to Revise Articles 3 & 4 of the Uniform Commercial Code.
(October 24, 2000)
CUNA cosigns a letter to the National Conference of Commissioners on Uniform State Laws (NCCUSL). The letter urges that electronic negotiable instruments be included within the scope of NCCUSL's project to revise UCC Articles 3 & 4. Currently, these articles and the Uniform Electronic Transactions Act do not cover electronic payments instruments within their provisions.

Comments on Study of Privacy Issues in Bankruptcy Data
(September 22, 2000)
CUNA comments on a study being conducted by three federal agencies that is addressing how privacy interests may be affected by the filing of a bankruptcy. CUNA stresses the need for credit unions to have unfettered access to a debtor's financial information and opposes any changes that would affect such access.

American Institute of Certified Public Accountants' (AICPA's) Combined Guide Proposal
(September 8, 2000)
CUNA does not support AICPA's proposal to integrate the existing AICPA Audit and Accounting Guides - Banks and Savings Institutions (BSI Guide), Audits of Credit Unions (CU Guide)Audits of Finance Companies (FC Guide) - into a combined Guide. The differences between credit unions and for-profit financial institutions in terms of mission, organization, and structure warrant the retention of a separate CU Guide. CUNA favors including corporate credit unions in the scope of the CU Guide. While CUNA supports a separate CU Guide, CUNA makes several recommendations regarding the combined Guide as it relates to credit union operations.

CUNA's Letter to the Farm Credit Administration
(June 19, 2000)
CUNA opposes increased risk-based capital requirements for Farm Credit System Banks that hold loans to credit unions and supports public disclosure of credit unions that participate in the Farm Credit System.

Architectural Transportation Barriers and Compliance Board
(May 15, 2000)
CUNA supports The Americans with Disability Act, but it does not support this proposal to require talking atms, which is too costly. As a result, the proposal, may reduce ATM availability. If a version of the proposal is adopted, CUNA requests grandfathering existing ATMS, including a phase-in period of several years; applying it only to remote ATMS; and requiring members to supply headsets.

Department of Commerce's Legal Barriers on Electronic Commerce
(April 24, 2000)
CUNA suggests that four initiatives may be undertaken to promote the use of check images in the check collection process or check truncation - the conversion of paper checks into electronic form. These four initiatives include: adoption of The Uniform Electronic Transactions Act (UETA); adoption of the Electronic Signatures in Global and National Commerce Act (H.R. 1714); amendments to the Federal Reserve Board of Governors' (the Federal Reserve) Regulation CC; and the Federal Reserve's assistance in prohibiting discrimination against payments instruments that are drawn on or issued by credit unions.

Federal Home Loan Banks' rules for membership and advances
(April 14, 2000)
CUNA commends the part of the rule that makes it easier for depository institutions that do not meet the qualified thrift lender test to obtain advances. CUNA asks the Federal Home Loan Banks to work with CUNA to include credit unions under the community financial institution exemption that allows financial institutions with less than $500 million in assets to join without meeting a requirement that 10 percent of their portfolio assets be in real estate loans.

SEC's Proposed Rule on Privacy
(March 31, 2000)
Consistent with our request to NCUA, CUSOs subject to SEC's authority should be affiliates of credit unions regardless of whether any one credit union owns 25% or more of that CUSO.

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