NCUA to Deal with Overdrafts, Performance Budget and Insurance Fund
At next Thursday's meeting the NCUA Board plans to vote on a final rule mandating the information about overdraft protection programs.
The interim rule, which has been in effect since last summer, requires credit unions to disclose in their periodic statements the total amount of the fees for overdraft protection that they are charging a member. They must use the phrase "total overdraft fees.'' In addition for members who have sweep accounts, the credit union must show a single balance, combining funds in the share draft subaccount and shared savings subaccount.
The rule also requires credit unions to notify members when there are restrictions on the use of the funds in their overdraft line of credit. For example, under some overdraft programs, the line of credit can't be used when using a debit card at a point-of-sale transaction.
The board is also scheduled to discuss and approve the NCUA Performance Budget. NCUA budgets start at $0 then are determined from the Annual Performance Budget. The agency has described those budgets as providing "near-term, agency-wide direction.''
The board is also scheduled to make changes to the guidelines for the NCUA's Supervisory Review Committee.
NCUA CFO Mary Ann Woodson is scheduled to give a report on the health of the NCUSIF and the Temporary Corporate Credit Union Stabilization Fund.
The meeting is scheduled to take place at 10:00 a.m. ET at the agency's headquarters in Alexandria, Va.
Following the public sheeting, there will be an executive session dealing with an insurance appeal and supervisory activities.