TALLAHASSEE, Fla. – Adding to the opposition against NCUA’s proposal to require financial reporting from CUSOs, Credit Union 24 is organizing a letter-writing campaign urging withdrawal of the initiative.
The move follows similar actions from CUNA and the National Association of CUSOs (NACUSO). The national ATM network developed a letter that is available on its website that CU 24 participants can download, customize, and send directly to the NCUA to voice their opposition.
“NCUA’s proposed information disclosure regulations will create more bureaucratic process and place an immense burden on CUSOs and credit unions,” said Jim Park, president and CEO of Credit Union 24. “With the new regulations, CUSOs and credit unions will be mired in unnecessary reporting and paperwork, thereby diminishing organizational efficiency and resulting in a decreased value offering to credit unions in point-of-sale and surcharge-free ATM access. We do not see these proposed regulations as a step forward for the credit union movement and we are actively opposing their implementation.”
Credit Union 24 has lobbied against the regulations in Washington on several occasions during meetings with NCUA officials, the company noted.
CO-OP Financial Services, Rancho Cucamonga, Calif., also weighed in on the matter. In a letter from President Stan Hollen to the NCUA board, CO-OP shared its concern for “onerous CUSO filing requirements and oversight being proposed by the NCUA that have little to no impact on the safety and soundness of the credit union industry.”
Hollen also noted that CUSOs represent less than 2% of individual credit union assets and only 22 basis points of total industry assets. “While there are a few high exposure examples of CUSO failures that contributed to the downfall of specific credit unions, there has not been a systemic problem with CUSOs causing credit union failures.”
Hollen concluded by stating CO-OP believes in prudent regulation to ensure the safety and soundness of the industry. “However, after a thorough review of the proposed regulation, CO-OP Financial Services has failed to identify the value of the additional regulation, how NCUA will safely maintain the records, protect confidential and proprietary information and remediate non-compliance.”
