NAFCU, trades ask Congress to address garnishment concerns in COVID package
As the House prepares to advance the next round of coronavirus relief, NAFCU joined with several other financial institution and consumer groups to ask Congress to include language to protect economic impact payments (EIPs) from garnishment.
"The economic impact payments are intended to help families purchase food and other necessities to make ends meet," the groups wrote. "Many people were already struggling prior to the coronavirus crisis and millions have now been laid off or had their hours cut.
"…We believe it is imperative that Congress ensure that these next stimulus payments are treated as 'benefits' subject to the federal exemption from garnishment. Otherwise, the families that most need this money—those struggling with debt and whose entire bank accounts may be frozen by garnishment orders—will not be able to access their funds," they argued.
Without language to protect the EIPs from garnishment, depository institutions are obligated to comply with court orders and pay creditors who attempt to garnish and freeze bank accounts. While the CARES Act did not provide this protection for the first round of EIPs, the Consolidated Appropriations Act (CAA) did include language to protect the second round of EIPs from garnishment.
The groups asked Congress to re-insert the garnishment language from the CAA into the American Rescue Plan Act "to ensure that American families will receive these benefits as intended to fulfill our common goal of protecting these payments from garnishment within the practical realities of existing financial institution systems."
The House Rules Committee is set to review the American Rescue Plan Act tomorrow before it heads to the full chamber for consideration.
NAFCU and industry trade groups have also asked for additional clarity regarding processing electronic and paper check transactions to ensure credit unions and other financial institutions have the resources and guidance needed to efficiently get funds to consumers. The association will continue to advocate for provisions that allow credit unions to effectively get these funds to members.
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Add to Calendar 2023-05-25 14:00:00 2023-05-25 14:00:00 Regulation E Compliance and Unauthorized Activity Payments fraud and claims of unauthorized transactions have been on the rise over the last few years. We are seeing more and more sophisticated fraud, in many forms. There’s growing concern that the existing regulatory landscape may fail to address certain types of fraud we’re seeing more frequently. Financial institutions and consumers alike look to the Electronic Funds Transfer Act, implemented by Regulation E, which establishes basic rights and liabilities for consumers that use electronic funds transfers. In this webinar, Regulation E Compliance and Unauthorized Activity you’ll get a high-level overview of the current regulatory landscape and how certain types of fraud are analyzed within that regulatory framework. Topics covered include: a review of Regulation E definitions and dispute resolution provisions, the impact of the Consumer Financial Protection Bureau’s (CFPB’s) Compliance Aid (FAQs), and the increase in scrutiny of negative option marketing, such as trial services and how that may violate the regulation. Key Takeaways Examine authorized and unauthorized electronic transfers Assess liability for unauthorized transfers Note legal scrutiny of negative option marketing plans Purchase Now$295 Members | $395 Nonmembers (Additional $50 for USB)One registration gives your entire team access to the live webinar and on-demand recording until May 25, 2024.Go to the Online Training Center to access the webinar after purchase » Who Should Attend NCCOs and compliance titles NCRMs and risk titles Education Credits NCCOs will receive 1.0 CEUs for participating in this webinar NCBSOs will receive 1.0 CEUs for participating in this webinar NCRMs will receive 1.0 CEUs for participating in this webinar CPA credit information is below; recommended 1.0 CPE credits. CPA Certification Credit Information Reviewer: Josie Collins, Senior Associate Director of Education, NAFCU Learning Objectives: See key takeaways Program Level: Basic Prerequisites Needed: None Advance Preparation Needed: None Delivery Method: Group Internet-Based Recommended CPE Credits: 1.0 credits Recommended Field of Study: Regulatory Ethics - Technical About Our Webinars Our webinars are streamed live from NAFCU headquarters near Washington, DC. Your audio/video feed of the presenters includes presentation slides and downloadable handouts. You can easily submit your questions to the presenters at any time during the live broadcast, with no dialing over the phone! The audio and video stream directly through your computer. Web NAFCU email@example.com America/New_York public
Regulation E Compliance and Unauthorized Activity
Credits: NCCO, NCBSO, NCRM, CPE
Add to Calendar 2023-05-23 14:00:00 2023-05-23 14:00:00 Explore Benefits and Instant Payments Use Cases for Your Credit Union In part 3 of this FedNow webinar series, spend time workshopping use cases opportunities that the FedNow Service could enable for your credit union’s business and consumer clients. Join Director of FedNow Product Management, Stephanie Miracle, and you’ll explore the range of use cases that the FedNow Service could enable across B2B, B2C, C2B and P2P in different industry verticals that include entertainment, education, hospitality, lending, travel, healthcare, as well as value proposition scenarios. You’ll leave more confident in understanding the value and advantages that instant payments will provide your credit union and member base. Key Takeaways Engage with a FedNow Service expert on the types of use cases that your credit union wants to enable with instant payments. Better understand the range of instant payments use cases opportunities across various industries. Explore benefits that different use cases can offer to your members and to your own credit union. Register Now For On-Demand AccessRegistration is Complimentary, but you must register to view.One registration gives your entire team access to the live webinar and on-demand recording until May 23, 2024.Go to the Online Training Center to access the webinar after purchase » Who Should Attend Credit union accounting and finance management NCRMs and risk titles NCCOs and compliance titles Education Credits NCCOs will receive 1.0 CEUs for participating in this webinar NCRMs will receive 1.0 CEUs for participating in this webinar About Our Webinars Our webinars are streamed live from NAFCU headquarters near Washington, DC. Your audio/video feed of the presenters includes presentation slides and downloadable handouts. You can easily submit your questions to the presenters at any time during the live broadcast, with no dialing over the phone! The audio and video stream directly through your computer. Web NAFCU firstname.lastname@example.org America/New_York public
Explore Benefits and Instant Payments Use Cases for Your Credit Union
Credits: NCCO, NCRM
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