NAFCU President/CEO Dan Berger called on the CFPB to provideguidance or issue an interim rule on a provision in the FixingAmerica's Surface Transportation Act (H.R. 22), which PresidentObama signed into law Dec. 4.

The provision aims to modernize privacy notification requirements for credit unions. The lawdid not assign an effective date to the provision, meaning itbecame effective when the law was signed. Berger specifically askedthe CFPB to provide regulatory clarity on the privacy noticerequirement.

In a Dec. 18 letter to Director Richard Cordray, Berger askedthe agency to “act swiftly to implement these statutory changes andclarify the controlling law through a formal announcement or thepromulgation of an interim final rule.”

Berger also outlined the new statutory exemptions within thelegislation that will give credit unions regulatory relief byallowing them to avoid the costs and labor associated with annualnotices.

“The elimination of duplicative annual notices will reduce thelikelihood of consumer confusion,” he noted.

NAFCU also recommended the agency use its authority stemmingfrom the Administrative Procedure Act to issue an interim finalrule that would incorporate the amended Gramm-Leach-Bliley Act intoRegulation P.

NAFCU had received inquiries from its members on the issue,which resulted in a need for the letter, Alicia Nealon, director ofregulatory affairs for the trade association, told CUTimes.

“While NAFCU firmly believes that the changes toGramm-Leach-Bliley are the controlling law on this issue, thissituation is another example of where the CFPB should providegreater clarity so that credit unions are best positioned goinginto 2016 without ambiguity,” she said.

In a statement to CU Times, a CFPB spokesperson said,“The CFPB recognizes that the recent statutory change on annualprivacy notice requirements became effective upon thetransportation bill's enactment. The bureau has begun workingwith our fellow regulators to coordinate on a process to discussfurther each agency's plans for rulemaking in this area given thestatutory changes. In the meantime, the bureau is conveying to itssupervision and enforcement staff that the law is effectiveimmediately so that no financial institution is expected to complywith superseded regulatory requirements.”

CUNA said it is currently in conversations with regulators toseek clarification on the matter.

The legislation included two additional provisions that willaffect credit unions: It allows privately insured credit unions tobecome members of the Federal Home Loan Bank system as well asdirects the CFPB to establish a process for determining whether anarea should be designated as rural.