Texas Regulator Seeks Expense Recovery from CUs for Unusual Exams
The Texas Credit Union Department wants to get reimbursed from the industry for expenses incurred for "unusual or extraordinary" examination cases, it disclosed Wednesday.
In a proposed June 18 rule out for comment this month, Texas CU Commissioner Harold E, Feeney said the agency may seek "direct reimbursement for time and actual expenses incurred by the department" for CU examinations deemed extraordinary.
Expenses including "personnel and transportation costs, meals, lodging and incidentals" would be declared "unique and directly attributable to an individual credit union," said the proposed rule issued by the Texas Credit Union Commission.
James Deese, deputy commissioner, said he has not noticed any large number of comments on the rule so far which would likely be acted at the commission's October meeting. The comment period on the June 18 rule runs for 30 days.
The proposed rule stipulates the if the commissioner "determines that the nature of a service is unusual and recovery of costs associated with the extraordinary service is appropriate, the Department shall provide advance notice to the credit union of its intention to recover expenses."
Unless an appeal is filed, the full amount would be due when the CU receives the bill.
In seeking reimbursement, "the commissioner shall consider the amount of the costs involved, the nature of the service, the impact of the activity on other department services, and other factors deemed appropriate."
Deese said he was unfamiliar with similar rules in other states but that the commission seeks to recover "a fair share" of expenses from those CUs where examiners were spending large amounts of time. Just how many Texas CUs might be on a list of troubled CUs deserving agency attention was unavailable, he said.