NCUA issues Lending/ODP Proposal; NAFCU Softball Splits
On Friday, NCUA approved a proposed regulation that would prohibit federal credit unions from engaging in certain acts or practices in connection with consumer credit cards accounts and overdraft services for deposit or share accounts. You can access the proposal here. (It is the top link. Note: the proposal in .pdf format is 269 pages in length as several agencies regs are included in one document.)
The proposal would amend Part 706 of NCUA's rules and regs. Here is a link to an NCUA press release that provides a general overview of the proposal.  Below, I'll briefly discuss a number of issues that caught my eye. Please remember that this proposal is large in scope! I really suggest that you read NCUA's release and then dig into the proposal if you need more details. Of note:
Credit Card Programs. When different interest rates apply to a credit card account balance, the proposal would require FCUs to reasonably allocate payments in excess of the required minimum payment among each item in a manner no less beneficial to three specified manners. The proposal would prohibit assessing an over-the-credit limit fee against a member who exceeded the credit limit solely because a hold is placed on the account. The proposal also would prohibit applying an increased interest rate retroactively to pre-existing balances, except for cases involving a variable rate, the expiration of a promotional rate, or where the member is more than 30 days late in making the minimum payment.
Overdraft Programs. The proposal would prohibit an FCU from imposing a charge for payment of an overdraft, unless it has provided the member with an opportunity to opt out of the overdraft protection program, and the member has elected not to opt out. Members may elect to do a partial opt-out to prevent overdrafts caused by ATM withdrawals and point of sale transactions. Also, the proposal would prohibit overdraft charges if the overdraft is caused solely by a hold placed on funds that exceed the actual purchase amount of the transaction, unless the actual purchase amount would have caused the overdraft.
NAFCU is working on a Regulatory Alert which will detail the proposal.
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NAFCU (2-4) split another double-header last week, losing game one 14-8 before bouncing back 9-3 in the nightcap. Standout efforts:
Leann Raney played a great third base and score a few key runs to get the offense going.
Corey "Big Hurt" Davis overcame a tight jersey to provide a couple of big hits and play outstanding defense.
Javier Sanchez had lots of timely hits (on both sides of the plate!) and great catches in left center.
Andrea Ansell played great at catcher.
Larry Palmer fell two more times, as well as having a game winning, 2 RBI single in game two. Larry has a talent for entertaining falls. He has totaled 4 this season. But who's counting?