WASHINGTON–CUNA has told NCUA it supports the agency’s proposal to expand CUSOs’ ability to make loans, while offering the FCC recommendations on how it might strengthen rules around call blocking.
The feedback was offered in separate comment letters to the organizations.
In its letter to NCUA, CUNA said the CUSO proposal represents “modest but important changes.”
“Quite simply, the expanded CUSO lending authority will allow CUSOs to better serve credit union members by making loans that might be impracticable for some credit unions to make now or in the future,” CUNA wrote. “Furthermore, the proposed changes to the adding permissible CUSO activities process represents smart rulemaking that increases the NCUA’s agility in considering and approving future permissible activities by CUSOs.”
CUNA said the proposal also will allow credit unions to stay “relevant and fulfill their mandated mission to provide financial services to those of ‘modest means’ is to expand the products, services and delivery channels for these products and services to meet consumers’ everchanging needs.”
‘The Next Blockbuster’
“If regulations do not evolve to help credit unions continue to provide financial services, they could become the next Blockbuster – a business where the need still exists for its product but it did not evolve to deliver to its product as technology developed,” CUNA continued.
The trade group said it also encourages NCUA to look at the FCU Act “through the lens of tomorrow instead of the rear-view mirror. As currently permitted, credit unions may lend to and invest in CUSOs and may also contract with CUSOs for certain services. While the Act governs the amount of lending and investments that federal credit unions (FCUs) may engage in regarding CUSOs, it does not delineate or limit the range of activities a CUSO may provide…Because this description does not set specific parameters on the kinds of lending or other activities in which CUSOs may engage, we urge NCUA to allow a CUSO to choose from the entire range of activities permissible for an FCU.”
CUNA said some CUs have expressed concerns CUSOs may compete directly with them for loans, but, “Looking forward, we believe the far greater risk is that of credit unions being unable to compete with large banks and fintechs rather than CUSOs.”
As CUToday.info reported earlier, the banking industry trade groups have called on NCUA to scrap the CUSO proposal, and CUNA urged NCUA to “discount the unhelpful comments and form letter writing campaign that could come from the banking trade associations.”
Letter to the FCC
Separately, CUNA sent a letter to the FCC commending it for strengthening the redress requirements as adopted in the Third Report and Order by establishing a blocking notification requirement, effective on Jan. 1, 2022, and for requiring terminating providers to give a status update within 24 hours.
“Particularly, once the notification requirement becomes effective, the Commission should continue to assess the efficacy of blocking regimes as well as the efficacy of the redress mechanisms to promptly reverse erroneous call blocking,” CUNA wrote. “Additionally, CUNA respectfully urges the Commission to continue to evaluate the need to extend redress mechanisms to call labeling. As CUNA and others have explained, erroneously labeling a legitimate call as spam or scam is tantamount to blocking and can cause harm by misleading consumers to reject important or critical calls.”
Additionally, CUNA said it also wants the Commission to continue to evaluate the need to extend redress mechanisms to call labeling.
“As CUNA and others have explained, erroneously labeling a legitimate call as spam or scam is tantamount to blocking and can cause harm by misleading consumers to reject important or critical calls,” CUNA wrote. “…Mislabeling also causes customer confusion and undermines the reputation of legitimate businesses. CUNA remains concerned that providers are not required to notify callers when they label their calls.
CUNA, CULAC Honored
Separately, CUNA andmits political action committee (PAC), the Credit Union Legislative Action Committee (CULAC), were recognized with three Pollie Awards by the American Association of Political Consultants (AAPC).
The awards were for credit union political efforts in the 2020 election cycle.
The three awards won by CUNA and CULAC were:
- Gold Pollie for Best Digital Ad in a US House IE for “Bob and Sue” — A partisan communication video ad for Rep. Don Bacon (R, NE-02) featuring the owners of a dance studio assisted by a credit union-facilitated PPP loan.
- Silver Pollie for Best Overall Direct Mail Campaign (Republican) — An independent expenditure mail campaign for Sen. Susan Collins (R-ME), consisting of four mailers highlighting the Senator’s support for the PPP, $eniorSafe Act, and food banks, featuring real credit union members who benefitted from her work.
- Bronze Pollie for Direct Mail for a Candidate (Organization) — An independent expenditure direct mail piece for Rep. Jared Golden (D, ME-02), featuring the Congressman’s support for Maine’s fishing and timber industries.