Legislative & Regulatory Update

​Wawa class action settlement deadline approaching; public comment open on two regulatory proposals; and DakCU advocates for credit unions with CFPB. 

by John Alexander, Director of Legislative & Regulatory Affairs

Reminder: CU class action settlement deadline approaching August 12
The deadline for credit unions to file claims for cash payments from a 28.5 million class action settlement against Wawa is approaching quickly. The settlement centers over an alleged data breach involving payment systems at Wawa convenience stores, compromising more than 30 million payment cards. Claim filing deadline is August 12.

Three types of claims are available. Affected credit unions are eligible to receive at least $400, which does not require any documentation. Eligible credit unions should have received a notice from Visa, Mastercard or Discover about the compromised cards, and a follow up postcard or letter from the settlement administrator, Analytics Consulting, LLC. These FAQs explain more details and how to file a claim.

The settlement website is www.wawafinancialinstitutionsettlement.com or you can contact the  Court-appointed settlement administrator at [email protected] or 1-855-391-9265.
 
Two proposals open for public comment
FinCEN Proposal on AML/CFT Programs: The Financial Crimes Enforcement Network (FinCEN) is proposing amendments to regulations governing anti-money laundering and counter-financing of terrorism programs for financial institutions. The National Credit Union Administration (NCUA) and other federal regulators are also seeking input.

Specifically, it would:

• Amend existing program rules to explicitly require financial institutions to establish, implement, and maintain effective, risk-based, and reasonably designed AML/CFT programs with certain minimum components, including a mandatory risk assessment process;
• Require financial institutions to review government-wide AML/CFT priorities and incorporate them, as appropriate, into risk-based programs, as well as provide for certain technical changes to program requirements; and
• Promote clarity and consistency across FinCEN’s program rules for different types of financial institutions.

CFPB Proposal on Mortgage Servicing Rules: The Consumer Financial Protection Bureau (CFPB) is proposing changes to the 2013 rules under Regulation X concerning mortgage servicer responsibilities. The proposal includes four key changes related to assisting borrowers during loss mitigation and early intervention, along with a fifth issue concerning credit reporting.

DakCU Advocates for Credit Unions with CFPB
The Dakota Credit Union Association (DakCU) has responded to the Consumer Financial Protection Bureau (CFPB) about the fees charged during home loan transactions. DakCU explained that credit unions, which often help low-income and first-time homebuyers, don't control many of these fees, such as those for credit reports and title insurance. These fees are set by third parties, and credit unions can't negotiate them.

DakCU argued that asking small lenders to negotiate these fees is unrealistic and burdensome. Unlike big banks, credit unions don't have the leverage to negotiate better prices. We also emphasized that credit unions are vital in rural areas where other banks might not operate.

Finally, DakCU urged the CFPB not to impose new regulations that could harm credit unions' ability to serve their members. Instead, we suggested collaborating with other agencies to find solutions that won't overstep legal boundaries or complicate the lending process.

As always, if you have any advocacy questions or concerns, don’t hesitate to contact me.