CUs Face Broad Range of Compliance Burdens
CUNA is watching rules from NCUA, CFPB, and other agencies.
Jared Ihrig’s opening presentation at CUNA’s Regulatory Compliance School in Boston went over on time Monday. He had a lot to talk about.
Ihrig, CUNA’s chief compliance officer, said CUNA is tracking a long list of compliance challenges from a variety of Washington agencies.
Among the top compliance issues credit unions face:
• Bank Secrecy Act (BSA). “BSA is a big focus,” Ihrig said.
The U.S. Treasury Department has a strong focus on BSA right now because the agency is using the act to fight terrorist financing of the Islamic State of Iraq and Syria (ISIS).
• Telephone Consumer Protection Act (TCPA). The Federal Communications Commission's (FCC) recent declaratory ruling and order creates significant risks under the TCPA for businesses that use automated telephone dialing systems.
The act—which Ihrig said is a “major concern” for CUNA—affects communications to members, including text messages, telemarketing calls, and debt collection calls.
Ihrig added that credit unions should “really take a look” at the recent FCC order because of the TCPA’s “extreme liability provisions.”
• Military Lending Act (MLA). Recent changes to the act, which apply to active duty servicemembers and their dependents, will cover many more new consumer credit products. The new rule changed the definition of consumer credit under the previous rule.
• Overtime pay. As part of the Obama Administration’s aim to expand the American middle class, the U.S. Department of Labor is reviewing overtime pay rules, Ihrig said. If approved, the rules will affect the compensation of credit union employees.
• NCUA’s supervisory priorities. According to Ihrig, NCUA will pay attention to cybersecurity; interest-rate risk; BSA compliance; liquidity and contingency funding; TILA-RESPA Integrated Disclosure Rule; ability-to-repay and qualified mortgage standards; internal controls, record keeping, and lending at small credit unions; and lending programs.
• Consumer Financial Protection Bureau’s (CFPB) focus. CFPB’s spotlight is on deceptive and misleading marketing of consumer financial products and services, “debt traps,” debt collection, loan servicing, credit reporting, and discrimination.
CUNA’s Regulatory Compliance School runs Sept. 20-25.