NAFCU Presses NCUA To Not Be Overly Narrow

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In a comment letter to NCUA on implementing the affiliate marketing provisions of the Fair and Accurate Credit Transactions Act (FACT) of 2003, NAFCU said it believes the agency is being too narrow in defining "pre-existing business relationships."

"It could present problems when credit unions create currently unconsidered consumer-affiliate relationships in the future," NAFCU wrote, asking that it be applied flexibly. Furthermore, noting NCUA has specifically requested comment on whether the affiliate receiving the information could provide the opt-out notice without concurrently making or sending solicitations and whether such notice would be effective.

NAFCU said it believes that the receiving affiliate should be permitted to provide notice on its own behalf, and that such affiliates should not have problems complying with the requirement that the opt-out notice be sent prior to any solicitation.

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