With Congress eyeing the upcoming month-long recess, New York Credit Union Association leadership is keeping an eye on some last-minute pushes. In particular, Association leaders are seeing movement on the following:
- HR 6889 Credit Union Board Modernization Act
The House Financial Services Committee passed the bipartisan Credit Union Board Modernization Act in their recent markup. The bill alters the Federal Credit Union Act to reduce the number of meetings required of a federally chartered credit union in good standing from 12 times per year to six. FCUs would be required to hold at least one meeting per quarter. A similar bill (S 4325) was recently introduced in the Senate but the Association does not expect it to move out of committee before the summer recess.
- HR 4277 Overdraft Protection of 2021
The House Financial Services Committee was set to markup in June, but it was delayed until this past week. The legislation implements numerous disclosure requirements, caps the number of times and the amounts a financial institution can charge for overdraft fees, limits transactions on which overdraft can be charged, and requires financial institutions to reorder transaction posting to minimize overdraft fees charged to the member.
The bill is highly contentious and does not have a single Republican co-sponsor. The CFPB asserts the legislation “will keep $8 billion a year, minimum, in consumers’ pockets.” However, it was also noted that the legislation would take away a financial lifeline on which many consumers depend. Despite the controversial nature, the bill moved out of committee late last week in a 27–22 vote in favor.
- NCUA-2022-0099 Cyber Incidents
The NCUA issued a proposed rule which would expand requirements for reporting cyber incidents. Under the new rule, FICUs are required to report “reportable cyber incidents” (as opposed to ‘cyber incidents’) within 72 hours. Credit unions will be given latitude in determining the severity and risk related to a cyber incident and be able to use their discretion in determining whether the incident is reportable. The new rule would apply to an incident at the credit union or a vendor.
The Association will continue to monitor the rulemaking and solicit member comments throughout the process.
Hike the Hill
Join the New York Credit Union Association Sept. 27–28 in Washington, D.C. as we Hike the Hill to advocate for initiatives that impact New York state credit unions!
Association leaders and credit union advocates will meet with legislators on Capitol Hill to discuss initiatives that directly impact New York state credit unions — including solutions to provide legal cannabis banking services, expanding financial access to underserved communities and more.
Interested participants can register for the event on the Association’s website. Registration deadline is Sept. 16. The Association has reserved a room block for attendees at the Courtyard Washington Downtown/Convention Center, located at 901 L St. N.W. More information about the room block will be provided as it becomes available.