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 2024-05-03 14:00:00 2024-05-03 14:00:00 Plan Sponsor Attitudes Toward Retirement Plan Management and Fiduciary Outsourcing About the Webinar In January 2024, Pentegra conducted a survey of retirement plan sponsors and their perspectives on retirement plan management and fiduciary outsourcing. The survey measured how sponsors are using fiduciary outsourcing to help better manage their retirement plans. It also captured their perspectives on what outsourcing does to help them better position their plans and drive improved retirement plan outcomes. Key Takeaways: What is the full scope of your responsibilities as a plan sponsor? What is fiduciary outsourcing and how does it work? How does fiduciary outsourcing help reduce workloads and minimize risk? How can a credit union best position its plan to drive improved outcomes? Register Here Web NAFCU digital@nafcu.org America/New_York public
Plan Sponsor Attitudes Toward Retirement Plan Management and Fiduciary Outsourcing
preferred partner
Pentegra
Webinar
Turning Lemons into Lemonade: Capitalizing in a Post-Banking Crisis Era
Strategy
preferred partner
Allied Solutions
Blog Post
Ensuring Safety and Soundness with AI
Management, Consumer Lending, FinTech
preferred partner
Upstart
Blog Post
Add to Calendar 2024-05-02 14:00:00 2024-05-02 14:00:00 Mastering Resilience in Incident Response Plans About the Webinar An Incident Response (IR) plan is crucial for guiding credit unions through major incidents efficiently and effectively. However, many IR plans lack resilience, making them less adaptable to the evolving threat landscape. Join us for our webinar Mastering Resilience in Incident Response Plans where DefenseStorm cyber experts Elizabeth Houser and James Bruhl will delve into the importance of resiliency within cybersecurity IR plans. Don’t miss out on the opportunity to learn how to: Ensure IR plan accessibility so that all team members with assigned roles are prepared for effective incident response. Conduct efficient and regular reviews to ensure roles and responsibilities are current, tools are relevant, and compliance requirements are met. Implement and utilize tabletops to regularly test the effectiveness of your IR plan. Enhance preparedness, efficiency, and confidence among responders. View On-Demand Web NAFCU digital@nafcu.org America/New_York public
Mastering Resilience in Incident Response Plans
preferred partner
DefenseStorm
Webinar
Get daily updates.
Subscribe to NAFCU today.