WASHINGTON (1/21/14)--The National Credit Union Administration's plan to fine late call report filers, revealed this week, is a clear case of "regulatory overreach," Credit Union National Association President/CEO Bill Cheney said in this week's Cheney Report.
In a Letter to Credit Unions (14-CU-03) released last week, the NCUA said it plans to charge late filers a minimum of $2,000 per day and a maximum of $1 million per day for various late filing offenses. (See Jan. 16 News Now story: Late call report filers will be fined by NCUA--starting soon.)
Cheney notes that the agency justified the assessment of the civil money penalties by noting more than 1,000 federally insured credit unions of all asset sizes filed their call reports after the 2013 third quarter deadline had passed, with a large percentage of these late filers being chronically late.
"We understand the need for the agency to obtain information in a timely manner--but these penalties are just not necessary," Cheney says. "Education for credit unions, including being sure they are aware of their reporting requirements, should be the keys to addressing problems--not punitive charges," he added.
"We're pushing back with NCUA about the imposition of this program," Cheney says..
Separately, The Report also notes Southeastern FCU's work to develop a student advisory board. The Valdosta, Ga. credit union selected 16 high school seniors to serve on its third high school student advisory board. Students were chosen based on several areas of criteria and will receive a $500 college scholarship upon completing their nine-month term on the board. "Activating a student advisory board is an excellent way to get young members involved in molding new and more effective ways of educating their peers on financial issues," Cheney wrote.
Creating awareness is one of the key elements of CUNA's Unite for Good effort, CUNA's shared, strategic vision in which Americans choose credit unions as their best financial partner.
Other issues addressed in this week's Report include:
For the full Cheney Report, use the resource link.