ARLINGTON, Va.—Areas on which the CFPB is focused, including overdraft services, third-party debt collection practices and remittances–are the primary focus of credit union attention in the latest edition of NAFCU'sEconomic & CU Monitor.
The June Monitor found that nearly all NAFCU members surveyed waive overdraft or nonsufficient funds charges on a case-by case basis. Others indicated that they capped daily charges on a single account, contacted members who incurred repeated overdrafts and waived fees on de minimis charges. “NAFCU has long maintained that these practices demonstrate credit unions' commitment to transparent and responsible overdraft services; the association has shared these points directly with the Bureau,” the trade association stated.
Debt Collection Practices
According to NAFCU, respondents to the latest survey reported they did not utilize third parties for debt collection. Among those that did, 80% reported having processes in place to verify the accuracy of delinquent account data. The CFPB proposed a third-party debt collection rule in May; credit unions can learn more and submit comments through NAFCU's Regulatory Alert.
Remittance Rule
Respondents also answered questions about the impact of the Bureau's remittance rule – which took effect in 2013 – and how the expiration of a temporary exception for estimating fee and exchange rate information required in certain disclosures might affect operations, NAFCU reported. Eleven percent of survey participants indicated that the July 2020 sunset of the temporary exception was the reason they were not currently offering remittances. Participants were also asked about the effectiveness of the rule's safe harbor threshold. The CFPB is currently collecting feedback on its remittance rule.