CUNA supports NCUA associational common bond final rule; concerned with proposed IOLTA rule
FOR IMMEDIATE RELEASE
Contact: Vicki Christner – CUNA Communications; 202-508-6754; email@example.com
Washington (April 30, 2015) – Following the National Credit Union Administration’s (NCUA) April 30, 2015 Board meeting today, President and CEO of CUNA Jim Nussle released the following statement:
“CUNA thanks for the NCUA Board for listening and adopting CUNA-backed changes in their final rule for associational common bond. We’re pleased NCUA allowed automatic approval for an additional five categories of association, removed the one year requirement from the threshold test and reduced the corporate separateness factor which will allow for an association to share an address with a credit union. These changes will ensure that millions of hardworking Americans will continue to have access to credit unions.
“However, CUNA is disappointed that the proposed rule on adding share insurance coverage to interest on lawyer trust accounts (IOLTA), which comes months after a bill allowing IOLTAs to be insured to by the National Credit Union Share Insurance Fund was signed into law, does not insure prepaid cards. We will continue to thoroughly review the proposal, but are concerned that the NCUA is not acting consistently with the Federal Deposit Insurance Corporation (FDIC) regarding insurance coverage for prepaid card accounts. The FDIC already determined that such accounts receive the same insurance coverage as other deposits.”
With its network of affiliated state credit union leagues, Credit Union National Association (CUNA) serves America's credit unions, which are owned by more than 100 million consumer members. Credit unions are not-for-profit cooperatives providing affordable financial services to people from all walks of life. For more information about CUNA, visit www.cuna.org or follow @CUNA on Twitter. For more information about credit unions, visit www.aSmarterChoice.org and follow @asmarterchoice on Twitter. Visit the CUNA Press Room for a full listing of media mentions, press releases and resources to stay informed on current events within the credit union industry.