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ALEXANDRIA, Va. – NCUA has sent a regulatory alert to credit unions that may offer at least some relief from compliance demands caused by certain provisions of the CARD Act which go into effect today.
The Act, which is designed to establish fair and transparent practices for open-end consumer credit plans, including credit cards, has stringent requirements related to disclosures that many credit unions have scrambled to comply with.
In its letter, NCUA pointed to a temporary remedy highlighted by the Federal Reserve Board that suggests "disclosure elsewhere on or with the periodic statement that a payment will not be treated as late for any purpose if received within 21 days after the statement is mailed or delivered," NCUA said.
Demand for more information on the CARD Act is apparently high. The Illinois CU League's Service Corporation said it hosted two Webinars on the topic that drew some 520 participants from across the country. The ICUL Service Corp. services card programs in 45 states for more than 3,100 credit unions, and has a portfolio of over a half million cards.
