Newsroom
NAFCU voices opposition to overdraft legislation ahead of Buy Now, Pay Later hearing
NAFCU Vice President of Legislative Affairs Brad Thaler Monday wrote to the House Financial Services Committee Task Force on Financial Technology regarding its hearing today on the impacts of the buy now, pay later business model. In the letter, Thaler reiterates NAFCU’s concern that fintechs and regulated financial institutions to compete on a level playing field when it comes to financial services. Thaler also outlines NAFCU’s opposition to legislation to regulate overdraft protection programs that was noticed for the hearing.
“While the buy now, pay later trend is worthy of investigation, we do not think that H.R. 4277, the Overdraft Protection Act of 2021, is the right vehicle to address these concerns,” wrote Thaler. “This legislation would have a negative impact on a number of courtesy pay programs put in place by credit unions to serve their members – programs that the members affirmatively opt-in to. Enacting this legislation would create consumer confusion and have a negative impact on community institutions who design these programs to meet the needs of their members.”
Thaler explained that credit unions already have alternatives and mechanisms in place to deal with abuse of pay programs and will often provide relief for members if concerns are raised.
“As such, we would encourage you to consider other solutions to the risks posed by buy now, pay later than H.R.4277, and we are opposed to this legislation…,” concluded Thaler.
NAFCU believes it is imperative that regulators and lawmakers provide greater legal clarity and a playing field that serves highly regulated institutions like credit unions just as well as nonbank, fintech companies. The association will monitor the today’s hearing – scheduled for 10:00 a.m. Eastern – and will keep credit unions up to date on this issue via NAFCU Today.
Share This
Related Resources
Add to Calendar 2024-04-24 14:00:00 2024-04-24 14:00:00 Optimize Liquidity, Maximize Loan Growth: The Network Lending Advantage About The Webinar Join us to learn more about network lending, a cooperative model allowing credit unions to optimize liquidity and achieve loan growth. Discover how credit unions can participate in loan pools with other institutions, allowing them to diversify portfolios, access loans with potentially lower risk and higher yields, and expand lending capacity without necessarily needing a surge in deposits. Delve into how credit unions can pool their resources, set common underwriting and pricing standards, and collectively originate, buy, and sell loans to optimize liquidity management. Hear from your peers about best practices, case studies, and practical strategies to harness the full potential of network lending and how it's helped their credit unions. Don't miss this valuable opportunity to learn how to strengthen your credit union's position in today’s competitive environment. Key Takeaways: How network lending differs from traditional lending The benefits of participating in loan pools with other credit unions How credit unions can set common underwriting and pricing standards and collectively originate, buy and sell loans to optimize liquidity management Why network lending is critical to loan growth Register Here Web NAFCU digital@nafcu.org America/New_York public
Optimize Liquidity, Maximize Loan Growth: The Network Lending Advantage
preferred partner
LendKey
Webinar
Add to Calendar 2024-04-23 14:00:00 2024-04-23 14:00:00 Monitoring the Latest Litigation Risks Credit unions’ operations pose litigation risks, with more of these cases being filed as class action lawsuits. In this Monitoring the Latest Litigation Risks for Credit Unions webinar, you’ll review some of the specific kinds of lawsuits impacting credit unions and what potential claims could be on the horizon. You’ll also examine some options for mitigating risks. Key Takeaways Review the current lawsuit trends. Understand the potential claims risks Explore options for mitigating risks. Register 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 April 23, 2025Go to the Online Training Center to access the webinar after purchase » Who Should Attend NCCOs NCRMs Compliance and risk titles Education Credits NCRMs will recieve 1.0 CEUs for participating in this webinar NCCOs will recieve 1.0 CEUs for participating in this webinar Web NAFCU digital@nafcu.org America/New_York public
Monitoring the Latest Litigation Risks
Credits: NCCO, NCRM
Webinar
Resiliency In Your Incident Response Plan
Cybersecurity
preferred partner
DefenseStorm
Blog Post
The Bottom Line on Insurance Tracking and Collateral Protection
Strategy
preferred partner
Allied Solutions
Blog Post
Get daily updates.
Subscribe to NAFCU today.