NAFCU Lauds Clarifications To Electronic NSF Collections
NAFCU showed its support for NCUA's interim final rule on insufficient or uncollected funds (NSF fees) collected electronically, saying the amendments mitigate unintended consequences of the previous wording of the reg.
In its comment letter, NAFCU wrote, "the interim final rule amends Regulation E., which implements the Electronic Fund Transfer Act...the amendments clarify that the requirement to obtain the consumer's authorization to collect an NSF fee via an EFT applies to the merchant or other payee seeking to collect a NSF fee electronically and not the consumer's account-holding financial institution... NAFCU believes that the interim final rule appropriately remedies the ambiguity in the current rule by clarifying that the notice and authorization requirement does not apply to the consumer's account-holding financial institution."
Among NAFCU's other comments on the reg:
* "Consumers typically turn to their financial institution for an explanation of a particular fee, regardless of whether the fee is being charged by the institution or a merchant or other payee," NAFCU wrote, supporting the amended disclosure rules. "Clear disclosures serve to reduce the costs associated with fielding consumer questions."
* Regarding the delayed compliance deadline for point of service (POS) terminals, the trade group wrote, "NAFCU generally favors consistent implementation deadlines. However, because of the significant time and costs involved in reprogramming POS terminals, NAFCU believes that the one-year delay in the compliance date with respect to the disclosure on the version of the notice given to the consumer regarding the amount of the NSF fee is appropriate."