Adding to the opposition against National Credit Union Association’s proposal to require financial reporting from credit union service organizations, Credit Union 24 is organizing a letter-writing campaign urging withdrawal of the initiative.
The move follows similar actions from Credit Union National Association and the National Association of Credit Union Service Organizations. 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 National Credit Union Association to voice their opposition.
The National Credit Union Association’s “proposed information disclosure regulations will create more bureaucratic process and place an immense burden on [credit union service organizations] and credit unions,” said Jim Park, president and CEO of Credit Union 24. “With the new regulations, [the organizations] 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 National Credit Union Association officials, the company noted.
Co-op Financial Services of Rancho Cucamonga, Calif., also weighed in on the matter. In a letter from President Stan Hollen to the National Credit Union Association’s board, Co-op shared its concern for “onerous … filing requirements and oversight being proposed by the [association] that have little to no impact on the safety and soundness of the credit union industry.”
Hollen also noted that credit union service organizations 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 [organization] failures that contributed to the downfall of specific credit unions, there has not been a systemic problem with [credit union service organizations] causing credit union failures.”
Co-op believes in prudent regulation to ensure the safety and soundness of the industry, Hollen said. “However, after a thorough review of the proposed regulation, Co-op Financial Services has failed to identify the value of the additional regulation, how National Credit Union Association will safely maintain the records, protect confidential and proprietary information and remediate non-compliance.”
What do you think about this? Send us your feedback.
