WEBVTT NOTE This file was generated by Descript 00:00:00.460 --> 00:00:02.400 Samantha: Hello, this is Samantha Shares. 00:00:03.010 --> 00:00:06.870 This episode covers America’s Credit Unions letter from Carrie Hunt Chief 00:00:06.940 --> 00:00:11.020 Advocacy Officer, to the National Credit Union Administration’s Board 00:00:11.020 --> 00:00:15.270 of Directors dated April nineteenth, twenty twenty-four Regarding: Request 00:00:15.270 --> 00:00:18.960 for Nondisclosure of Overdraft and Non-Sufficient Funds Fee Data. 00:00:19.659 --> 00:00:22.069 The following is an audio version of that letter. 00:00:22.639 --> 00:00:25.829 This podcast is educational and is not legal advice. 00:00:26.289 --> 00:00:30.289 We are sponsored by Credit Union Exam Solutions Incorporated, whose 00:00:30.289 --> 00:00:33.399 team has over two hundred and Forty years of National Credit 00:00:33.399 --> 00:00:35.239 Union Administration experience. 00:00:35.789 --> 00:00:39.429 We assist our clients with N C U A so they save time and money. 00:00:39.869 --> 00:00:43.849 If you are worried about a recent, upcoming or in process N C U A 00:00:43.849 --> 00:00:48.259 examination, reach out to learn how they can assist at Mark Treichel DOT COM. 00:00:48.719 --> 00:00:53.059 Also check out our other podcast called With Flying Colors where we provide tips 00:00:53.059 --> 00:00:55.619 on how to achieve success with N C U A. 00:00:56.373 --> 00:00:57.273 And now the letter. 00:00:57.979 --> 00:01:01.369 Regarding: Request for Nondisclosure of Overdraft and 00:01:01.369 --> 00:01:03.099 Non-Sufficient Funds Fee Data 00:01:03.843 --> 00:01:07.863 Dear Chairman Harper, Vice Chairman Hauptman, and Board Member Oatska: 00:01:08.648 --> 00:01:12.658 On behalf of America’s Credit Unions, I am writing to urge the National 00:01:12.658 --> 00:01:16.788 Credit Union Administration to refrain from publicly disclosing certain data 00:01:16.788 --> 00:01:18.608 collected in the latest Call Report. 00:01:19.138 --> 00:01:23.888 Specifically, the revised Call Report requires credit unions to report overdraft 00:01:23.888 --> 00:01:26.288 and non-sufficient funds (N S F) fees. 00:01:26.728 --> 00:01:29.358 Data on these fees should not be released publicly. 00:01:29.768 --> 00:01:33.878 Instead, the agencies Board should further evaluate the legal and reputational 00:01:33.878 --> 00:01:38.208 risks that credit unions may face and delay the release of such information. 00:01:38.728 --> 00:01:42.508 America’s Credit Unions is the voice of consumers’ best option for 00:01:42.508 --> 00:01:44.908 financial services: credit unions. 00:01:45.378 --> 00:01:49.018 We advocate for policies that allow the industry to effectively meet the 00:01:49.018 --> 00:01:52.608 needs of their nearly one hundred and forty million members nationwide. 00:01:53.371 --> 00:01:57.421 Effective March thirty first, the agency recently added fields to the Call 00:01:57.421 --> 00:02:02.061 Report requiring credit unions above 1 billion dollars in assets to report 00:02:02.061 --> 00:02:04.611 revenue from overdraft and N S F fees. 00:02:05.041 --> 00:02:08.691 As detailed in a February letter to the Chairman, and shared with the other 00:02:08.691 --> 00:02:13.111 Board members, America’s Credit Unions raised concerns regarding the process 00:02:13.111 --> 00:02:16.881 through which these changes were made, explaining that the agency should have 00:02:16.881 --> 00:02:20.961 provided direct notice to all credit unions and generally should not pursue 00:02:20.961 --> 00:02:24.911 significant changes without first notifying the industry of such proposed 00:02:24.911 --> 00:02:27.271 changes at least two quarters in advance. 00:02:27.883 --> 00:02:31.643 Subsequently, we sent a letter to the agency’s Office of General Counsel 00:02:31.673 --> 00:02:35.583 (O G C) requesting a legal opinion letter regarding the applicability 00:02:35.583 --> 00:02:39.293 of the Freedom of Information Act to information collected and disclosed 00:02:39.293 --> 00:02:43.423 publicly as part of the Call Report requirements in the agencies regulations. 00:02:44.033 --> 00:02:47.913 It is our position that the agency should refrain from disclosing publicly 00:02:47.913 --> 00:02:51.873 the Fee Income reported under revised Call Report account code one hundred 00:02:51.873 --> 00:02:56.003 and thirty one, as this information is confidential business information 00:02:56.003 --> 00:02:57.983 protected under the FOIA exemptions. 00:02:58.333 --> 00:03:02.133 We maintain that this information on overdraft and N S F fees is 00:03:02.133 --> 00:03:06.233 exempt from a FOIA request under FOIA Exemption 4 and therefore should 00:03:06.233 --> 00:03:08.153 not be made public by the agency. 00:03:08.663 --> 00:03:12.733 If the agency is releasing Call Report data under separate authority, we 00:03:12.733 --> 00:03:14.553 would appreciate that clarification. 00:03:15.268 --> 00:03:19.138 Given our significant concerns with the potential release of this information, 00:03:19.408 --> 00:03:22.818 and the fact that the new Call Report requirements are already effective, 00:03:23.198 --> 00:03:26.678 I am sending this letter directly to the entire Board urging you to 00:03:26.678 --> 00:03:30.418 prevent the public disclosure of the information collected under revised 00:03:30.418 --> 00:03:32.658 Call Report account code one thirty one. 00:03:33.248 --> 00:03:37.108 There are significant reputational risks that are likely to quickly arise with the 00:03:37.108 --> 00:03:39.278 public disclosure of such information. 00:03:39.638 --> 00:03:43.088 As we have already seen following the release of certain information on 00:03:43.088 --> 00:03:47.678 overdraft and N S F fees charged by California state-chartered credit unions 00:03:47.678 --> 00:03:52.158 and banks, this information is likely to be spun in a misleading and potentially 00:03:52.158 --> 00:03:56.788 inaccurate way, resulting in irreparable harm to the positive reputation credit 00:03:56.788 --> 00:03:58.928 unions have worked so hard to achieve. 00:03:59.720 --> 00:04:03.390 I appreciate the willingness of each Board member to discuss this issue, 00:04:03.710 --> 00:04:07.610 including during America’s Credit Unions’ Governmental Affairs Conference. 00:04:08.120 --> 00:04:11.610 As such, you are likely familiar with our position on collecting and 00:04:11.610 --> 00:04:14.390 releasing O D P and N S F fee data. 00:04:14.960 --> 00:04:18.760 Given that the changes have already been made to the Call Report, we stress the 00:04:18.760 --> 00:04:21.130 significant ramifications that may result. 00:04:21.440 --> 00:04:25.930 Thus, if the Board is unwilling to prevent disclosure of this fee data indefinitely, 00:04:26.080 --> 00:04:30.680 we urge, at a minimum, the agency to delay such disclosure until after it has 00:04:30.680 --> 00:04:35.350 sufficiently assessed the legal and policy concerns with releasing such information. 00:04:35.991 --> 00:04:40.671 To best protect the credit union system and consumers, the NCUA should refrain 00:04:40.671 --> 00:04:43.051 from disclosing such information publicly. 00:04:43.786 --> 00:04:45.056 This concludes the Letter. 00:04:45.770 --> 00:04:49.890 If your Credit union could use assistance with your exam, reach out to Mark Treichel 00:04:49.890 --> 00:04:52.660 on LinkedIn, or at mark Treichel dot com. 00:04:53.230 --> 00:04:55.900 This is Samantha Shares and we Thank you for listening.