CUNA President/CEO Dan Mica today asked NCUA Chairman Michael E. Fryzel to ask his examiners to take no enforcement actions against credit unions trying to comply with the 21-day notice rule for open-end credit accounts.
At issue, is a provision of the Credit Accountability Responsibility and Disclosure Act, which takes effect on Thursday, that requires statements on open end accounts be delivered 21 days before they are due. Some credit unions say they are facing logistical and other obstacles that are making compliance difficult.
"There is no question that the CARD Act is inflicting a significant toll on the credit union system. In recognition of this and the range of other issues credit unions are facing, including the sagging economy and funding for NCUA's corporate stabilization program, we urge you to direct NCUA examiners to work with credit unions as they reasonably determine what is their best approach for compliance," Mica wrote.
He added that if a credit union had made a good faith effort to comply they not be subject to any penalties.
Fryzel, CUNA, NAFCU and several lawmakers have asked the Federal Reserve to delay the effective date of that provision, but so far the Fed has refused to do so.
