Samantha: Hello, this is Samantha Shares.
This episode covers Americaâs Credit Unions letter from Carrie Hunt Chief
Advocacy Officer, to the National Credit Union Administrationâs Board
of Directors dated April nineteenth, twenty twenty-four Regarding: Request
for Nondisclosure of Overdraft and Non-Sufficient Funds Fee Data.
The following is an audio version of that letter.
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And now the letter.
Regarding: Request for Nondisclosure of Overdraft and
Non-Sufficient Funds Fee Data
Dear Chairman Harper, Vice Chairman Hauptman, and Board Member Oatska:
On behalf of Americaâs Credit Unions, I am writing to urge the National
Credit Union Administration to refrain from publicly disclosing certain data
collected in the latest Call Report.
Specifically, the revised Call Report requires credit unions to report overdraft
and non-sufficient funds (N S F) fees.
Data on these fees should not be released publicly.
Instead, the agencies Board should further evaluate the legal and reputational
risks that credit unions may face and delay the release of such information.
Americaâs Credit Unions is the voice of consumersâ best option for
financial services: credit unions.
We advocate for policies that allow the industry to effectively meet the
needs of their nearly one hundred and forty million members nationwide.
Effective March thirty first, the agency recently added fields to the Call
Report requiring credit unions above 1 billion dollars in assets to report
revenue from overdraft and N S F fees.
As detailed in a February letter to the Chairman, and shared with the other
Board members, Americaâs Credit Unions raised concerns regarding the process
through which these changes were made, explaining that the agency should have
provided direct notice to all credit unions and generally should not pursue
significant changes without first notifying the industry of such proposed
changes at least two quarters in advance.
Subsequently, we sent a letter to the agencyâs Office of General Counsel
(O G C) requesting a legal opinion letter regarding the applicability
of the Freedom of Information Act to information collected and disclosed
publicly as part of the Call Report requirements in the agencies regulations.
It is our position that the agency should refrain from disclosing publicly
the Fee Income reported under revised Call Report account code one hundred
and thirty one, as this information is confidential business information
protected under the FOIA exemptions.
We maintain that this information on overdraft and N S F fees is
exempt from a FOIA request under FOIA Exemption 4 and therefore should
not be made public by the agency.
If the agency is releasing Call Report data under separate authority, we
would appreciate that clarification.
Given our significant concerns with the potential release of this information,
and the fact that the new Call Report requirements are already effective,
I am sending this letter directly to the entire Board urging you to
prevent the public disclosure of the information collected under revised
Call Report account code one thirty one.
There are significant reputational risks that are likely to quickly arise with the
public disclosure of such information.
As we have already seen following the release of certain information on
overdraft and N S F fees charged by California state-chartered credit unions
and banks, this information is likely to be spun in a misleading and potentially
inaccurate way, resulting in irreparable harm to the positive reputation credit
unions have worked so hard to achieve.
I appreciate the willingness of each Board member to discuss this issue,
including during Americaâs Credit Unionsâ Governmental Affairs Conference.
As such, you are likely familiar with our position on collecting and
releasing O D P and N S F fee data.
Given that the changes have already been made to the Call Report, we stress the
significant ramifications that may result.
Thus, if the Board is unwilling to prevent disclosure of this fee data indefinitely,
we urge, at a minimum, the agency to delay such disclosure until after it has
sufficiently assessed the legal and policy concerns with releasing such information.
To best protect the credit union system and consumers, the NCUA should refrain
from disclosing such information publicly.
This concludes the Letter.
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This is Samantha Shares and we Thank you for listening.