Q Are credit unions required to send nonsufficient funds (NSF) notices to members each time they overdraw a share/share draft account?
A No. This common misconception was highlighted in the first “Compliance Myths” post on CUNA’s CompBlog in June. Although many institutions provide NSF or overdraft notices as a matter of common practice, providing the notice is a courtesy, not a regulatory requirement. Providing the notice may also be considered as a loss control measure, since it serves as a red flag for errors and unauthorized items. Please note that this shouldn’t be confused with the Regulation E overdraft notice credit unions must provide members to opt-in to their overdraft service for ATM and one-time debit card transactions.
For more information, visit CUNA’s e-Guide to Federal Laws and Regulations.
Visit CUNA’s CompBlog
CUNA rolled out its compliance blog—“CompBlog”—in June.
CompBlog takes the information credit unions have found for years in CUNA’s “Compliance Challenge” and delivers it in a more timely format. Instead of the monthly “Challenge,” credit unions have access to virtually daily observations about regulatory developments, Q&As, and musings from CUNA’s compliance team.
The new format also incorporates “What’s New in Compliance” so readers won’t have to monitor two different Web pages for the latest regulatory developments.
E-mail firstname.lastname@example.org with questions or ideas for blog posts. And keep the conversation going with your peers on COBWEB—CUNA’s compliance listserv.