Legislative & Regulatory Update

​Holiday Sweepstakes continues until December 8; and merging ViClarity into our compliance resources with a synopsis of things “you need to know.” 

by John Alexander, Director of Legislative & Regulatory Affairs

CUPAC/CULAC Holiday Sweepstakes extended.
Because of a payments system glitch that was out of our control, we have extended the deadline for our Holiday Sweepstakes. The sweepstakes will remain open until Friday, December 8 at 5:00 p.m. (CT) and the drawing will be held on Monday, December 11 at 3:00 p.m. (CT). We sincerely hope this allows ample time for everyone who wishes to contribute and enter the drawing. ​If you have any questions about the sweepstakes, please contact me or Chesney Garnos. 

NCUA to Reinstate Penalties for Late Call Reports Starting January 2024
In a significant policy reversal, the National Credit Union Administration (NCUA) has declared that starting January 1, 2024, it will resume imposing civil money penalties on credit unions that fail to submit their NCUA Form 5300 Call Reports punctually. This move marks the end of a leniency period initiated in response to the COVID-19 pandemic.

NCUA Chairman Todd M. Harper emphasized the importance of this reinstatement. "Suspending the program in December 2019 was a necessary response to the pandemic's challenges. However, restoring it is crucial for maintaining the integrity and timeliness of the quarterly Call Report data, which is vital for members, stakeholders, other regulators, and the public," he stated.

The upcoming December 2023 Call Report cycle will be the first to fall under this reinstated penalty regime, with submissions due by 11:59:59 p.m. Eastern Time on January 30, 2024.

In an effort to aid credit unions in adhering to this deadline, the NCUA plans to send reminders to institutions with pending Call Reports one week before the due date. This step is intended to help credit unions avoid incurring penalties through oversight or delay.

However, the NCUA has also clarified that it will consider extenuating circumstances when assessing penalties. These considerations, as outlined in Section 206 of the Federal Credit Union Act, include factors like the credit union's size and financial resources, the gravity of the violation, past violation history, and other contextual elements, such as natural disasters or the incapacitation of key employees.

Credit unions are advised to familiarize themselves with the updated requirements and prepare accordingly to ensure timely submission of Call Reports. Detailed information and guidance on filing credit union Call Reports are available on the NCUA website.

Please note: to access any of the links below, you will need your members-only ViClarity login information. If you have not yet established your account, please refer to the instructions in this previous article.  

Upcoming Webinar – A Year in Compliance: Recapping 2023 & Forecasting 2024
Credit unions need to consider many determining factors when evaluating their strategic plans for the upcoming year. In this webinar, we will discuss current compliance risks, challenges and opportunities to prepare your credit union for a successful new year. Join ViClarity Compliance Officers Sabrina Ducksworth-Brown and Tiffany Mallare as they delve into a federal regulatory recap of significant changes from the last year and share an astute viewpoint for 2024. Register here.

Important Announcement from the IRS: Interest Rates Unchanged for Q1 2024
In a recent statement released on November 17, 2023, the Internal Revenue Service (IRS) confirmed that the interest rates for the upcoming calendar quarter, commencing on January 1, 2024, will remain unchanged. The rates, crucial for both individuals and corporations, play a significant role in determining overpayment and underpayment penalties. The IRS sets these rates on a quarterly basis to align with prevailing economic conditions. Read more about this topic here.

CFPB Annual Report 2023: Navigating Fair Debt Collection Practices
The Consumer Financial Protection Bureau (CFPB) recently released its highly anticipated annual report to Congress, offering a comprehensive overview of its initiatives in administering the Fair Debt Collection Practices Act (FDCPA) throughout the year 2022. As the principal federal regulator of the consumer debt collection industry, the CFPB plays a pivotal role in upholding fair practices and safeguarding the rights of consumers. More on this topic here.

Public Comment Period Open: Proposed Simplification of Share Insurance Rules
The National Credit Union Administration (NCUA) has opened the comment period for a proposed rule aimed at simplifying share insurance regulations. This proposed rule introduces a new category, "trust accounts," and is designed to enhance the clarity and consistency of the NCUA's share insurance framework. Continue reading here.

CFPB Annual Report 2023: A Comprehensive Overview
As the year draws to a close, the Consumer Financial Protection Bureau (CFPB) has released its semi-annual report to Congress for the period beginning October 1, 2022, and ending March 31, 2023, providing a comprehensive snapshot of its activities and initiatives. The report covers a range of critical areas, offering insights into the CFPB's rules and orders, consumer complaints, supervisory and enforcement actions, state consumer financial law, fair lending efforts, and initiatives to enhance workforce and contracting diversity. Overview available here.
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Contact John Alexander with any legislative or regulatory concerns at [email protected].