Compliance

MEMPHIS, Tenn. – A federal court yesterday certified a suit for class action status that claims that Hope Community CU violated provisions of the Electronic Funds Transfer Act requiring ATM owners to disclose to customers on-site what fees will be charged for using the cash machine.

WASHINGTON – The House Financial Institutions Committee on Wednesday is widely expected to endorse a bill that would cut down the growing number of class action suits against credit unions and banks by eliminating one of the two disclosures on fees charged non-members required at ATMs.

BIRMINGHAM, Ala. – The epidemic of overdraft suits continued to spread through credit unions, with at least two more credit unions targeted by member class actions claiming the credit unions engage in unfair business practices by ordering debit card transactions by size, rather than by the date they are conducted.

The two major credit union trade associations expressed significant concerns with the Consumer Financial Protection Bureau's new Consumer Complaint Database on credit cards.

SAN JOSE, Calif. – Big credit unions are being targeted anew for their practices on overdrafts for debit transactions, with three new class action suits filed yesterday in federal court here charging Star One CU, Kern Schools FCU and SchoolsFirst FCU with unfair and deceptive practices regarding their use of “batching,” or paying off the biggest transactions before the most recent.

WASHINGTON – A community bank in Texas is filing a class action suit this afternoon challenging the constitutionality of the Dodd-Frank Act and its establishment of the Consumer Financial Protection Bureau.

PHILADELPHIA – In an unusual dual ruling, a federal judge Friday dismissed a suit brought by a non-customer of Philadelphia FCU claiming the credit union violated the fee disclosures requirements of the Electronic Funds Transfer Act and the handicapped provisions of the Americans With Disabilities Act.

PARKERSBURG, Md. – Rapid settlements between two local credit unions and a Michigan retiree who has sued 37 credit unions and banks over the ATM disclosures the Electronic Funds Transfer Act earned the so-called ATM vigilante small cash settlements, according to individuals familiar with the cases.

A statute long relegated to the environmental regulatory landscape is transforming the way consumer financial regulations are implemented.

NCUA indicated last week that its examiners will be giving credit unions a bit more room to operate.

Will a study of checking account disclosures and financial institution checking practices help to tighten the Consumer Financial Protection Bureau's focus on overdrafts?

WASHINGTON – Credit unions and banks ran into new opposition by consumer groups who oppose a bill that would eliminate the requirement that fees charged non-customers at the ATM are posted both on the side of the machines, as well as on-screen.

WHEELING, W.V. – Two local credit unions agreed this week to settle separate suits on ATM disclosures brought by a Michigan retiree who has gone around the country suing credit unions and banks over their failure to post fee disclosures on the outside of their ATMs.

LANDER, Wyo. – Atlantic City FCU has selected NeighborBench, a cloud-based platform that connects credit unions with a team of compliance experts, to help simplify compliance.

ALEXANDRIA, Va. – The NCUA Board is expected next week to vote a new CUSO rule that will give the federal regulator greater controls and monitoring over the hundreds of credit union subsidiaries that do everything from data processing to ATM networking to real estate services.

ORLANDO, Fla. – NCUA will be ratcheting up how it defines a “small” credit union in the near future.

Credit unions in New Jersey took their message regarding examination and regulatory issues to NCUA's headquarters.

The NCUA has changed its troubled debt restructuring (TDR) rule to allow credit unions to deem a restructured member mortgage loan current as soon as the loan is closed.

SECU and NCUA have been arguing over more than just TDRs, including the CU's disclosure of its CAMEL code last year.

Effective June 30, NCUA's new TDR rules eliminate the need to maintain separate manual delinquency calculations on the past due status of loans.