Rep. Brad Sherman (D-Calif.) echoed CUNA’s call for removal of the account transfer limit under Regulation D due to the unprecedented challenge presented by the coronavirus disease (COVID-19) pandemic. Sherman chairs the House Financial Services subcommittee on investor protection, entrepreneurship and capital markets.

Regulation D caps the amount of account transfers for consumers at six per month. CUNA wrote to the Federal Reserve Board twice over the last month requesting the removal of the limit.

“During the current crisis, it is imperative that people maintain social distancing and personal quarantines by minimizing trips out of the house. That is why I have encouraged the Federal Reserve to temporarily raise the monthly limit on certain electronic transfers out of consumer savings and other accounts,” said Sherman. “Rules that result in people needing to leave their homes to physically go to ATMs and branch locations should by appropriately tailored until this emergency has ended.”

CUNA President/CEO Jim Nussle expressed appreciation Wednesday for Sherman’s letter.

“Ensuring that Americans have rapid, ready access to their finances is paramount to mitigating the widespread economic effects of the COVID-19 pandemic.” Nussle said. “By temporarily waiving or raising the Regulation D limit on savings transfers, the Federal Reserve Board will help credit unions and other financial institutions in their quest to meet consumers’ needs while aiding in social distancing and shelter-in-place orders across the country. We thank Rep. Sherman for his efforts to support consumers’ financial access and his support for the financial first responders serving families throughout this crisis.”  

CUNA called for the removal of the limit in a March 18 letter, saying that it would allow easier access to funds during the coronavirus disease (COVID-19) pandemic. The trade association advocating on behalf of America’s credit union members pushed further for the Fed to remove the monthly account transfer limit under Regulation D in another letter sent on March 30.