ARLINGTON, Va.—As CUToday.info reported, it is expected the impact of the California Consumer Privacy Act (CCPA) will be widespread, hitting CUs well outside the boundaries of the Golden State.
Now the latest NAFCU's Economic & CU Monitor report reveals that over half of survey respondents have been affected by the implementation of the California Consumer Privacy Act (CCPA). The CCPA went into effect Jan. 1.
Twenty percent also indicated they were also affected by the European General Data Protection Regulation (GDPR).
Of note: one credit union estimated that the cost of preliminary actions to comply with the new privacy laws was $50,000 and that it would take at least eight months to develop a responsive compliance program, NAFCU reported.
Ahead of its implementation, NAFCU, in a joint letter, urged the California governor, attorney general and members of the California state senate and assembly to delay the effective date of the CCPA by two years. The association has also urged Congress to create uniform standards to prevent confusion stemming from a patchwork of different state laws.
The survey also asked about subordinated debt, which was included in the NCUA's fall rulemaking agenda. The Monitor found that a majority of respondents were unsure whether their credit union would consider issuing subordinated debt, but highlighted the benefits of being able to do so. The NCUA board issued a proposal on subordinated debt during Thursday's board meeting.
Rebounding Sentiment
Separately, NAFCU’s latest Credit Union Sentiment Index (CUSI) increased in December, partly reversing the steep decline from November as respondents' outlook on loan demand fell steadily over the second half of 2019. Most respondents with a positive outlook cited either economic or lending conditions as the primary factors, NAFCU said.