ADA updates, MLA FAQs in latest NAFCU Compliance Monitor
The latest edition of NAFCU's Compliance Monitor, sent to members yesterday, provides an update on the Americans with Disabilities Act (ADA) litigation threat facing the credit union industry and answers some of the most frequently asked questions (FAQs) regarding the Military Lending Act (MLA).
Pamela Yu, NAFCU's special counsel for compliance and research, gives some history on the ADA as well as the typical pattern of claims from lawyers. She notes that demand letters have been "highly successful at obtaining large sums of settlement money for plaintiffs' lawyers and shows no signs of abatement." NAFCU is aware of credit unions being targeted by demand letters in at least 24 states.
Yu also touches on the regulatory void regarding website accessibility requirements under the ADA and how credit unions are responding to demand letters they have received. She highlights various court cases in which credit unions have seen success in fighting these claims, and legislation pending before Congress that aims to provide some relief.
NAFCU continues to engage with stakeholders on this issue, including Congress and states' attorneys general. Resources for dealing with the ADA issue, including its widely downloaded FAQ document, can be found here.
Regarding the MLA, Brandy Bruyere, NAFCU's vice president of regulatory compliance, talks about the concerns and confusion among credit unions related to the Department of Defense's (DoD) second interpretative rule attempting to clarify the 2015 amendments to its regulations. Most of the confusion relates to auto loans and indirect lending programs, Bruyere says.
She gives some background on the DoD's interpretation and provides a few FAQs and information that may shed light on the issues credit unions are tackling.
NAFCU has a host of MLA compliance resources here.
This month's Monitor also features the Compliance Forum, providing answers to questions related to the Home Mortgage Disclosure Act, relationships with credit reporting agencies and the MLA.
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